{"id":2278,"date":"2026-01-20T17:44:22","date_gmt":"2026-01-20T17:44:22","guid":{"rendered":"https:\/\/malaysian-business.com\/wptest\/2026\/01\/20\/fnhb-delivers-double-digit-profit-growth-for-fy2018\/"},"modified":"2026-01-23T18:19:39","modified_gmt":"2026-01-23T18:19:39","slug":"fnhb-delivers-double-digit-profit-growth-for-fy2018","status":"publish","type":"post","link":"https:\/\/malaysian-business.com\/portal\/2026\/01\/20\/fnhb-delivers-double-digit-profit-growth-for-fy2018\/","title":{"rendered":"F&NHB Delivers Double-digit Profit Growth for FY2018"},"content":{"rendered":"

Fraser & Neave Holdings Bhd (F&NHB) posted a higher revenue of RM996.6 million for its fourth quarter ended 30 September, up 2.1 per cent with a significant improvement in the Group\u2019s bottom line compared to same quarter in 2017. <\/span><\/p>\n

For the Group\u2019s segmental performance, Food & Beverage Malaysia (F&B Malaysia) recorded positive revenue gain for the third consecutive quarter, growing 1.9 per cent to RM545.4 million in its fourth quarter ended 30 September driven by improved local trade execution and higher exports sales, marking a return to stability post-reorganisation. <\/span><\/p>\n

Operating profit for F&B Malaysia soared 418.7 per cent to RM36.5 million in the fourth quarter of FY2018 compared to the corresponding period last year on the back of higher revenue, operational cost savings and lower overheads, lower sugar prices which was partly offset by higher packaging material costs, lower advertising and promotions (A&P) spend and restructuring expenses incurred last year., excluding restructuring costs and other one-off items, operating profit grew by 78.4 per cent.<\/span><\/p>\n

Food & Beverage Thailand (F&B Thailand) increased its revenue by 2.3 per cent to RM450.9 million for the fourth quarter and the domestic growth was driven by successful promotional activities and brand loyalty campaigns alongside with higher export sales from market expansion and execution of loyalty campaigns across Cambodia and Laos, and with higher revenue and favourable input costs, operating profit for F&B Thailand was up 94.9 per cent to RM61.7 million in its fourth quarter, compared to the corresponding quarter last year.<\/span><\/p>\n

The Group concluded its financial year ended 30 September with a marginally higher revenue at RM4.11 billion compared to the same period last year underpinned by effective festive promotions and exports sales.<\/span><\/p>\n

Cost synergies and lower overheads in its Malaysia operations, favourable input cost, higher export revenue and lower restructuring costs and other one-off items incurred compared to the year before contributed to the double-digit profit growth in FY2018.<\/span><\/p>\n

Commenting on the Group\u2019s results, F&NHB chairman Tengku Syed Badarudin Jamalullail said that the results were driven by strong fundamentals and clear focus on long-term growth.<\/span><\/p>\n

\u201cMoving forward, we will continue to sharpen our focus on ensuring continuous and sustainable growth in our three pillars \u2013 F&B Malaysia, F&B Thailand and Exports,\u201d he said.<\/span><\/p>\n

The financial year end saw a turnaround for F&B Malaysia while revenue increased marginally to RM2.322 billion from RM2.319 billion in the same period last year, operating profit was higher by 38.1 per cent to RM166.7 million from RM120.7 million last year. <\/span><\/p>\n

The strong profit performance is attributed to positive effect of cost initiatives, favourable input cost for sugar, net favourable foreign currency impact from Ringgit Malaysia\/US Dollar movements and lower restructuring costs incurred compared to last year, which was offset by higher costs for other dairy-based inputs, packaging costs and higher marketing spend, excluding restructuring costs and other one-off items, operating profit of F&B Malaysia eased by 4.5 per cent.<\/span><\/p>\n

F&B Thailand sustained its growth and market leadership during the year under review through successful introduction of new products and packaging formats, supported by effective branding and consumer trade campaigns, despite a difficult domestic market environment and encountering the loss of UHT milk revenue caused by inventory shortage resulting from a co-manufacturer\u2019s plant that was damaged by fire in November 2017. <\/span><\/p>\n

Revenue for F&B Thailand grew 2.2 per cent in local currency terms but gained marginally by 0.3 per cent to RM1.787 billion from the corresponding period in 2017 due to the strengthening of the Ringgit against Thai Baht. <\/span><\/p>\n

F&B Thailand\u2019s operating profit for the financial year ended 30 September rose 13.1 per cent to RM258.0 million compared to the same period last year on the back of higher export revenue, favourable input costs and lower overheads but the gains were partly offset by higher A&P spend for new product introductions and brand building activities.<\/span><\/p>\n

\u201cDespite the challenging first half of 2018, we remained <\/span>focused on capacity and capability building, cost optimisation and extraction of synergies, leveraging consumer-focused innovations to deliver new and unique product offerings, and expanding the reach of our export business. <\/span><\/p>\n

\u201cThis has allowed us to pull together a healthy set of results and delivery of our financial objectives within volatile domestic markets and commodity prices during the year,\u201d<\/span> said F&NHB chief executive officer, Lim Yew Hoe.<\/span><\/p>\n

Lim added that innovation and reinvention will be the Group\u2019s overarching strategy to stimulate growth and demand while <\/span>delivering on its promise of \u201cPure Enjoyment, Pure Goodness\u201d in meeting consumer\u2019s increasing demand for more affordable, tastier and healthier offerings.<\/span><\/p>\n

Commenting on prospects for the current financial year ending 30 September 2019, Lim expected the domestic markets in Malaysia and Thailand to remain challenging amidst continuing competitive price pressures and intensifying competition as well as effects from the volatility in foreign currency movements and commodity prices as the Group has partially hedged its core commodity requirements for the coming financial year with the corresponding foreign currency exposure wherever possible.<\/span><\/p>\n

\u201cIn Malaysia, we will assess and closely monitor the impact of the imposition of excise duty at 40 cents per litre on ready-to-drink beverages that contain sugar exceeding 5 grams per 100 millilitres, starting 1 April 2019 as announced during the recent tabling of the Budget 2019, including taking appropriate actions as necessary. <\/span><\/p>\n

\u201cIn Thailand, we will begin to pay corporate taxes next year following the full utilisation of promotional incentives granted by the Board of Investment and carried forward losses from non-promoted businesses.\u201d Lim added. <\/span><\/p>\n

In line with the Group\u2019s performance, the Board is recommending an interim single tier dividend of 30.5 sen per share (2017: 30.5 sen per share) for approval by shareholders at the forthcoming Annual General Meeting. If approved by shareholders, the total dividend for the year would amount to 57.5 sen per share (2017: 57.5 sen per share).<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Fraser & Neave Holdings Bhd (F&NHB) posted a higher revenue of RM996.6 million for its fourth quarter ended 30 September, up 2.1 per cent with a significant improvement in the Group\u2019s bottom line compared to same quarter in 2017. For the Group\u2019s segmental performance, Food & Beverage Malaysia (F&B Malaysia) recorded positive revenue gain for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-2278","post","type-post","status-publish","format-standard","hentry","category-corporate"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/2278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=2278"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/2278\/revisions"}],"predecessor-version":[{"id":6035,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/2278\/revisions\/6035"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=2278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=2278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=2278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}