1Q19 revenue inched 0.4% higher to $464.4 million, from $463.5 million a year ago, on higher dairy and soft drinks sales in its core markets of Malaysia, Singapore and Thailand.
However, the better performance in Food & Beverage (F&B) was partly offset by lower revenue in Publishing & Printing due to lower print and distribution volume for magazines and timing differences in the publication of business directories.
Despite the marginal sales growth, F&N saw its profits surge on the back of lower input costs for milk-based commodities, sugar and palm oil. Consequently, profit at Dairies Malaysia and Dairies Thailand rose 74% and 31%, respectively.
Share of associated companies’ profits rose 39.3% to $23.7 million in 1Q19, from $17.0 million a year ago.
See also: CDLHT’s FY2025 DPS down by 9.8% y-o-y to 4.8 cents
As at end December, cash and cash equivalents stood at $323.5 million.
Looking ahead, F&N says consumer sentiments in the F&B segment is expected to remain challenging with continuing competition as well as volatility in foreign currency movements and commodity prices.
It adds that it is awaiting further details on a sugar tax in Malaysia starting April, which was announced in the Malaysian Budget 2019, and will assess and closely monitor its impact on the group.
See also: Keppel DC REIT's DPU rises 9.8% in FY2025 after setting aside capex and ULP reserves
“In the meanwhile, we are prioritising efforts to accelerate innovation and the development of new product offerings,” F&N says in a filing to SGX on Monday. “The group will also continue to pursue new investment opportunities to further grow its beverages and dairies businesses.”
Shares in F&N closed flat at $1.70 on Monday.
