F&N nine-month net profit up 10.4% at S$130.6 million despite revenue drag
Income for the nine months falls 6% to S$1.7 billion due to forex headwinds and geopolitical disruptions
Fraser and Neave (F&N) reported a 10.4% rise in net profit to S$130.6 million for the nine months ending June 30, despite a decline in revenue. This improvement came from increased profitability and stronger contributions from its associate Vinamilk, and also due to the company's enhanced stake in Vinamilk, which reached approximately 25% from 20.4% earlier.
Revenue for the nine months fell by 6% to S$1.7 billion, adversely affected by foreign exchange translation challenges and geopolitical disruptions impacting cross-border trade in Thailand. The core food and beverage sector saw a 7% revenue decline, amounting to S$1.46 billion, with its beverage segment continuing to grow while the beer revenue faced downward pressure due to unfavorable forex translation.
Dairies division's earnings were bolstered by resilient performance in Malaysia, driven by the School Milk Programme and increased sales in hotels, restaurants, and cafes, alongside new product launches in Singapore. The company also completed its investment in Comvita, a New Zealand-listed wellness company, acquiring a 20% stake for around S$15 million to enhance its health and wellness offerings.
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