Fraser and Neave (F99) Q1 2024 TU earnings summary

Executive summary

• Revenue was $531.6M, down 0.2% YoY; constant-currency revenue improved 2%, while PBIT rose 41.9% to $80.6M, led by Dairies.

• PBIT margin expanded 450 bps to 15.2%; attributable profit before fair value adjustments and exceptional items increased 52.9% to $43.8M.

Financial highlights

• Revenue was $531.6M, down 0.2% YoY; gross profit rose 10.8% to $173.5M.

• PBIT increased 41.9% to $80.6M; PBIT margin rose to 15.2% from 10.7%.

• Profit after tax, after fair value adjustments and exceptional items, fell 7.5% to $65.1M; 1Q2023 included a $27.1M Cocoaland fair value gain.

• Attributable profit before fair value adjustments and exceptional items rose 52.9% to $43.8M; EPS on the same basis rose 50.0% to 3.0 cents.

Segment performance

• F&B revenue grew 0.2% reported and 3% in constant currency, supported by Soft Drinks volumes, Beer selling prices and canned milk sales.

• Dairies led PBIT growth: earnings rose 49% reported and 51% in constant currency, supported by revenue growth, lower input costs and a higher Vinamilk profit share.

• Vinamilk profit share rose 4% to $20.4M; Malaysia profit increased 40% reported and Thailand profit rose 75%.

• Beverages earnings were pressured by forex translation, sales mix and higher A&P spend; Publishing & Printing returned to profitability on Education strength and loss-making store closures.

• Publishing & Printing revenue was affected by print-order timing, weaker international print demand and lower retail sales following store closures.