KUALA LUMPUR (May 3): Fraser and Neave Holdings Bhd's (F&N) net profit jumped over 8% to RM101.18 million or 27.6 sen per share in the second quarter ended March 31, 2023 (2QFY2023), up from RM93.87 million or 25.6 sen per share a year ago, largely due to strategic acquisitions, mainly Cocoaland Holdings Bhd.

The group declared an interim single-tier dividend of 27 sen per share in 2QFY2023 — as it did in 2QFY2022 — amounting to RM99 million to be paid on June 1, 2023.

In a filing with Bursa Malaysia, F&N said revenue rose 9% to RM1.21 billion in 2QFY2023 compared with RM1.11 billion a year before, driven by festive sales for its Malaysian food & beverage (F&B) division and contribution from Cocoaland.

The group’s operating profit for 2QFY2023 correspondingly grew 15.1% to RM126 million, higher than RM109.5 million in 2QFY2022, thanks to overall
better price, margin and cost management, as well as Cocoaland’s contribution.

Notably, F&N acquired the entire stake in Cocoaland in June last year, citing synergistic benefits.

For the first half ended March 31, 2023 (1HFY2023), F&N saw its net profit grow 60.5% to RM299.98 million, up from RM 186.82 million a year earlier.

Its revenue for 1HFY 2023 also improved by 9.5% to RM2.43 billion, up from RM2.21 billion a year ago.

F&N chief executive officer Lim Yew Hoe said the group remains committed to meeting the Phase 1 completion of its integrated dairy farm in Ladang Permai Damai by December 2024, when the first milking is expected to begin.

“This will allow the group to be less dependent on imported milk while promoting the growth of the local agricultural industry and contributing to food security in Malaysia,” he said.

Lim also expressed confidence in F&N’s financial strength and strong cash flow. He noted that the group was able to deliver a higher bottom line despite the RM15.5 million increase in interest costs due to the recent strategic acquisitions.

“We are cautiously optimistic going into the second half of the fiscal year as markets continue to recover. Our strategic decisions have placed us on a firm footing to defend our margins, strengthen our brands and enable future growth,” said Lim.