Fraser & Neave (F&N) has reported revenue of $618 million for the 1QFY2025 ended Dec 31, 2024, 16.3% higher y-o-y. The higher topline was driven by the group’s food and beverage (F&B) segment, which increased by 19% y-o-y. Sales for beverages, which includes soft drinks and beer, surged by 39% y-o-y during the quarter.
Revenue for soft drinks increased due to a favourable sales mix and higher volumes from the early sell-in ahead of Chinese New Year, which took place at the end of January this year. Beer sales more than doubled, mainly due to the TAPPER brand in Myanmar. The brand was launched in FY2024.
The dairies segment saw revenue grow by 9% y-o-y thanks to all core markets which saw growth due to increased domestic and export demand in Indochina.
Meanwhile, overall revenue was affected by F&N’s printing and publishing (P&P) revenue, which fell by 3% y-o-y due to lower licensing income in Latin America and the absence of one-off title rights sales in Hong Kong in 2024.
Across F&N’s geographies, revenue in Thailand and Malaysia grew while revenue in Singapore fell. Revenue in Thailand was up due to higher canned milk volumes, a favourable product mix and the impact of favourable foreign exchange (forex). In Malaysia, topline grew across all segments driven by higher soft drinks volume.
Revenue fell in Singapore from the streamlining of F&N’s export businesses, offset by growth in soft drinks revenue.
In 1QFY2025, profit before interest and taxes (PBIT) increased by 14% y-o-y to $91.9 million, driven by F&N’s F&B segment but slightly offset by lower earnings from P&P. Malaysia, Thailand and Vietnam contributed to the earnings growth. Vietnam’s growth was due to a higher share of profit from Vinamilk.
PBIT margin fell by 30 basis points y-o-y to 14.9%.
Profit after tax (PAT) increased by 14% y-o-y to $74.2 million while attributable profit to shareholders before exceptional items – or earnings – was up by 18.8% y-o-y to $52 million.
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Earnings per share (EPS) for the quarter rose by 20% y-o-y to 3.6 cents.
As at Dec 31, 2024, cash and bank balances stood at $579.5 million.
Shares in F&N closed 1 cent higher or 0.79% up at $1.27 on Feb 6.
