Edited by: Sheera Abg Mansor
KUCHING: The outlook for Fraser & Neave Malaysia Holdings Bhd’s (F&N) Food and Beverages Malaysia (F&B Malaysia) has been projected to remain challenging while the group’s earnings growth is set to continue on an upward trend, driven by better prospects for F&B Thailand.
In a filing on Bursa Malaysia, F&N highlighted that F&B Malaysia’s operating profit improved to RM133.4 million for the nine months ended June 30, 2019, up by 2.4 percent from the corresponding period last year.
Meanwhile, F&B Thailand’s operating profit improved by 53.5 percent (47.6 percent in local currency) to RM301.4 million for the nine months ended June 30, 2019.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) as quoted in Borneo Post, the outlook for F&B Malaysia remains challenging in view of competitive price pressures and intensifying competition especially in the canned milk segment as well as the beverage segment due to the impact of the sugar-sweetened beverages excise duty effective from July 1, 2019.
It nonetheless believed that the group’s earnings growth will continue to grow, driven by the better prospect for F&B Thailand following the improvement in both sweetened condensed and evaporated milk segments.
Source: Borneo Post