Fraser and Neave reports 18.8% surge in Q1 net profit to US$38.5M
SINGAPORE – Fraser and Neave Ltd (F&N), a Thai-Singaporean food and beverage conglomerate, has reported an 18.8 percent rise in net profit to S$52 million (US$38.5M) for the first quarter ended December 31, up from S$43.8 million (US$32.44) in the same period a year ago.
The company’s revenue also grew by 16.3 percent, reaching S$618 million (US$457.69M) compared to S$531.6 million (US$393.65M) in the previous year.
The food and beverage segment, which includes beverages and dairies, was the primary driver of growth, recording a 19 percent increase in revenue.
This was largely fueled by a 39 percent surge in sales for soft drinks and beer.
All core markets for dairies also saw growth, with increased domestic and export demand in the Indochina region contributing to the strong performance.
However, revenue for the printing and publishing segment declined by 3 percent, which the company attributed to lower licensing income in Latin America and the absence of one-off title rights sales in Hong Kong last year.
Despite this, overall profitability remained strong, with profit before interest and taxes rising by 14 percent to S$91.9 million (US$68.1M), up from S$80.6 million (US$59.7M) in the previous year.
The beverages segment was a significant contributor to profit growth, with soft drinks leading to a 38 percent increase in earnings. This was supported by higher sales volumes and a favorable cost environment.
The dairies segment also posted gains across Malaysia, Thailand, and Vietnam, driven by strong sales and improved cost efficiencies.
By region, Thailand saw revenue growth due to higher canned milk volumes, a favorable product mix, and forex gains.
In Malaysia, all business segments recorded revenue growth, led by strong demand for soft drinks. Meanwhile, in Singapore, overall revenue declined due to the streamlining of export businesses, although soft drink sales still grew.
The group’s earnings per share rose by 20 percent to 3.6 Singapore cents, up from three Singapore cents in the prior year. F&N’s popular brands include 100 Plus, Seasons teas, Magnolia milk, and F&N soft drinks such as Sarsi and Ice Cream Soda.
In 2024, F&NHB received the Gold award for the Consumer Products and Services Sector at the Edge ESG Awards 2023, recognizing its strong environmental, social, and governance (ESG) practices.
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