Fraser and Neave (F&N) has reported earnings of $150.2 million for the FY2024 ended Sept 30, 12.7% higher y-o-y. Earnings for the 2HFY2024, however, fell by 14.9% y-o-y to $66.4 million.
Earnings per share (EPS) for the FY2024 and 2HFY2024 stood at 10.3 cents and 4.5 cents respectively on a fully diluted basis.
FY2024 revenue rose by 3% y-o-y to $2.16 billion as revenue from F&N’s beverages and dairies segments rose, offsetting the revenue decline in printing and publishing. On a constant currency basis, FY2024 revenue increased by 5% y-o-y. During the year, beverages revenue, comprising beer and soft drinks, rose by 10.7% y-o-y to $668.3 million. The growth was due to a favourable sales mix and higher volumes of beer and soft drinks mainly from successful festive campaigns and new product launches.
Dairies revenue increased by 1.1% y-o-y to $1.21 billion from strong exports and domestic sales of canned milk offsetting the adverse foreign exchange (forex) impact. In constant currency terms, revenue for beverages and dairies were up by 13% y-o-y and 3% y-o-y respectively.
Printing and publishing revenue fell by 9.1% y-o-y to $201.3 million mainly from lower print orders and the closure of unprofitable business units. However, profit before interest and taxation (PBIT) for this segment reversed into profitability of $0.5 million from a loss of $9.8 million last year.
Group gross profit for FY2024 surged by 10.5% y-o-y to $688.8 million while group PBIT rose by 19.5% y-o-y to $297.0 million. The higher PBIT was due to higher food and beverage sales, effective cost management and a more favourable commodities environment.
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The board has proposed a final dividend of 4 cents per share, unchanged from last year’s. Including the interim dividend of 1.5 cents, F&N’s total dividend for the year is at 5.5 cents.
“FY2024 was another year of good progress for F&N, marked by the second consecutive year of growth in revenue and attributable profit. Our ability to deliver growth underscores the resilience of our portfolio and the effectiveness of our strategic initiatives,” says Hui Choon Kit, CEO of F&N.
Hui attributed the “good” year to the group’s teams’ work in “navigating challenges” and “driving these results”.
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“By staying focused on strengthening our core brands and optimising our operations, we have positioned ourselves well to capitalise on market opportunities. The significantly higher contributions from our beverages and dairies segments, along with the turnaround in publishing & printing, are the highlights of this collective effort,” he adds.
“As we chart our path forward, we will continue to build on this momentum by sharpening our focus on expanding our market reach and leveraging digital innovation to enhance our competitiveness,” he continues, adding that the group aims to “strengthen” its footprint in its key markets and enhance operational efficiencies through “targeted investments and a deeper understanding of consumer preferences”.
“Our ongoing commitment to harnessing data and technology will also play a crucial role in driving product innovation and elevating the customer experience,” he says.
As at Sept 30, cash and cash equivalents stood at $529.6 million.
Shares in F&N closed flat at $1.35 on Nov 8.
