Fraser and Neave (F99) Q1 2023 TU earnings summary

Executive summary

• Q1 revenue rose 5.6% YoY to $532.6M, while PBIT fell 22.1% to $56.8M and PBIT margin narrowed 378 bps to 10.7%.

• Higher PAT included a $27.1M fair value gain on the remeasurement of Cocoaland Holdings Bhd; shareholder-attributable profit and EPS declined on the stated pre-adjustment basis.

Financial highlights

• Revenue was $532.6M, up 5.6% YoY; gross profit increased 4.5% to $156.5M.

• PBIT was $56.8M, down 22.1% YoY; PBIT margin was 10.7%, down from 14.4%.

• PAT after fair value adjustment and exceptional items was $70.4M, up 38.7%; it included a $27.1M fair value gain from Cocoaland Holdings Bhd remeasurement.

• Shareholder-attributable profit before fair value adjustment and exceptional items was $28.6M, down 28.8%; EPS on the same basis was 2.0 cents, down 28.9%.

Outlook and guidance

• Marketing investments for 100PLUS were set to ramp up in 2023, supported by sponsorships and promotional activity.

• Festive campaigns and early Chinese New Year sell-in supported Soft Drinks sales; new and limited-edition products were launched in Singapore and Malaysia.