Fraser & Neave Ltd has recorded an increase in first-quarter profits

Fraser & Neave Ltd has recorded an increase in first-quarter profits

Fraser & Neave has recorded an increase in first quarter profits on the back of a strong soft drinks and dairy performance.

Net profits for the quarter to the end of December climbed by 37.7% to RM107.1m (US$35.3m), the firm said yesterday (7 February). Operating profit was up by 35% on last year to RM132m.

Sales rose by 16.5% to RM1.03bn on account of continued strong demand across all product categories, an earlier Chinese New Year sales window and incremental sales from new product variants.

F&N's board said it remains cautious about the group's prospects for the remainder of the year as a result of the reduction of sugar subsidies to business users from 1 January this year.

"The rise in food prices and energy costs will exert pressures on margins," F&N said. "The group is aware of the volatility in the external environment and will endeavour to meet the challenges posed by these risks."

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