Fraser and Neave (F99) Q3 2023 TU earnings summary

Executive summary

• 9M2023 revenue rose 5.6% to $1,579.9M; PBIT declined 2.1% to $176.3M and PBIT margin contracted 88 bps to 11.2%.

• All business segments contributed to revenue growth; growth was 11% in constant currency, versus 6% reported.

Financial highlights

• Revenue increased to $1,579.9M from $1,495.5M; gross profit rose 6.3% to $460.3M.

• Profit after tax, after fair value adjustment and exceptional items, increased 12.9% to $151.9M; this included a $26.8M fair value gain on Cocoaland remeasurement.

• Attributable profit and EPS, before fair value adjustment and exceptional items, fell 7.9% to $89.6M and 7.5% to 6.2 cents, respectively.

Segment performance

• Soft Drinks, Beer and Dairies sales benefited from higher selling prices, festive campaigns, product launches and exports, despite FX translation headwinds.

• Dairies Thailand and Malaysia revenue grew 2% reported and 8% in constant currency; Soft Drinks Malaysia and Beer revenue rose 11% and 21% in constant currency.

• Beverages PBIT fell 22% reported and 16% in constant currency; Dairies PBIT was flat reported and up 5% in constant currency, with Vinamilk profit share down 13% to $62.8M.

• Publishing & Printing losses narrowed on stronger book distribution and improved retail margins; Others benefited from Cocoaland's contribution.

• Malaysia revenue grew on Soft Drinks and Dairies sales; Thailand revenue faced FX pressure, while domestic sales grew on higher prices. Thailand PBIT increased on domestic and Indochina sales and exports.