F&N Foods reports profit dips amidst lower milk sales

Dairies business generated most of the earnings for the nine months ended 30 June.

Frasers & Neaves, Limited (F&N Foods) reported a 3.9% dip to $118m in profits attributable to shareholders, largely due to reduced contribution from Vietnamese milk brand Vinamilk for the nine months ended 30 June.

Profit before income tax fell by 1.6%. F&B earnings were driven by an increase of 4% in its dairy business, supported by robust performance in key markets, particularly Malaysia and Thailand, partly driven by lower input costs and reduced marketing spend due to phasing.

However, this was partially offset by a 16% decline in profit contribution from Vinamilk.

In the company’s beverage business, soft drinks earnings were impacted by unfavourable sales mix, cushioned by strong Beer earnings and lower input costs.

The group’s publishing and printing business earnings were mainly affected by decreased sales and higher printing costs. Meanwhile, the group’s other businesses saw an overall decline of 40%.