Fraser and Neave (F99) H1 2023 earnings summary

Executive summary

• H1 FY2023 revenue rose 3.5% to $1,045.3m, or 9% excluding forex; PBIT fell 16.7% to $105.8m.

• PAT increased 19.4% to $110.9m, including exceptional gains; attributable profit before exceptional items declined 19.8% to $55.0m.

Financial highlights

• Revenue was $1,045.3m versus $1,010.0m; gross profit increased 3.8% to $296.6m and operating expenses rose 9.0% to $237.2m.

• PBIT declined 16.7% to $105.8m; PBIT margin fell 245 bps to 10.1%. Profit before tax excluding exceptional items fell 21.9% to $89.7m.

• PAT was $110.9m, up 19.4%; attributable profit was $70.7m, including $15.8m of attributable exceptional items.

• Operating cash flow was $147.8m versus an outflow of $12.4m a year earlier; cash and bank deposits were $348.1m.

Outlook and guidance

• H2 FY2023 performance is expected to exceed the corresponding prior-year half; inflation, economic uncertainty, weaker regional currencies and supply-chain risks remain.

• Resilience measures include renewable energy, flood mitigation and stronger supply-chain management; continued investment in brands, distribution and product innovation.