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F&N posts 8.2% drop in 9M earnings to $118 mil on adverse impacts from Covid-19

Samantha Chiew
Samantha Chiew8/6/2020 06:36 PM GMT+08  • 2 min read
F&N posts 8.2% drop in 9M earnings to $118 mil on adverse impacts from Covid-19
Covid-19 causes F&N to spill earnings
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Fraser and Neave (F&N), the food and beverage manufacturer and distributor owned by Thai Beverage, announced in a business update that its 9M20 earnings have dropped by 8.2% y-o-y to $118 million.

This beings earnings per share for 9M20 to 8.1 cents, down from 8.9 cents in 9M19.

The fall in earnings is in line with a 2.9% y-o-y decline in revenue to $1.4 billion, which is mainly due to the adverse impacts of the Covid-19 pandemic and flooding in East Malaysia.

Despite the maiden contribution from new brewery in Myanmar, revenue from the Beverages segment fell 7.9% on lower soft drinks volume, largely in Malaysia.

The Dairies segment recorded a 2% y-o-y growth, as Thailand, Singapore and Indonesia recorded higher sales. In particular, successful customer loyalty programme and hawker installation initiatives, wider outlet coverage, new products and positive translation effect fuelled top-line growth in Dairies Thailand.

Dairies Malaysia however continued to be impacted by subdued domestic demand and weak sentiments, despite strong export sales.

Meanwhile, the group’s publishing and printing (P&P) segment saw a 15% y-o-y decline in revenue contribution due to the effects of Covid-19, which resulted in temporary plant closures, deferment of textbooks sales orders and reduction in print requirement.

Hence, 9M20 profit before interest and tax fell 7.2% y-o-y to $211.0 million.

Shares in F&N closed at $1.34 on Aug 6.

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