Dairies registered flat y-o-y revenue. Dairies Malaysia recorded strong growth on higher export, which was offset by lower revenue from Dairies Thailand on unfavourable translation impact. P&P sales were impacted by the cancellation or deferment of print orders, border closures and dampened consumer sentiments. By geography, all of F&N’s core markets registered lower sales, in particular Malaysia, due to subdued trade sentiments, which impeded the recovery of its Soft Drinks segment. Profit before interest (PBIT) for 1QFY2021 grew 7% y-o-y as earnings for Beverages increased over twofold due to higher profitability in Emerald Brewery and favourable packaging costs and lower advertising and promotion in Soft Drinks.
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In terms of its markets, Thailand and Vietnam remain the group’s top contributors, at 50% and 29% respectively. Malaysia’s contribution fell to 18% from 20% previously due to lower sales and higher commodity prices. 1Q profit after tax (PAT) grew 10.8% y-o-y to $64.5 million due to lower effective tax rate of 13.9% during the quarter.