BEVERAGE maker F&N : F99 0% reported a net profit of S$83.8 million for the first six months of its 2024 fiscal year ended March, a 52.5 per cent increase from S$55 million in the same period a year ago.

The company said in a bourse filing on Thursday (May 9) that the strong performance was due to increased sales in its food and beverage segment, improved cost efficiencies, and favourable commodity prices. This is despite challenges stemming from foreign exchange differences in overseas operations and higher brand spending. 

Revenue rose 2.5 per cent to S$1.1 billion for the six-month period, driven by the food and beverage segment, which saw revenue grow 4 per cent to S$929.8 million.

Under this segment, beverages registered a 6 per cent rise in revenue on the back of a favourable sales mix and higher volume arising from festive campaigns, while dairies’ revenue grew 3 per cent on robust export and higher domestic canned milk volumes from Malaysia and Thailand.

However, revenue for its printing and publishing segment continued to decline, decreasing 14 per cent to S$96.5 million. The drop was largely attributed to reduced print orders and lower retail sales from the closure of unprofitable business units. 

While overall revenue increased slightly by 2 per cent, profit before interest and taxes jumped 53.6 per cent to S$162.5 million on the back of increased food and beverage sales, effective cost-reduction measures, and a more favourable commodity cost environment.

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The food and beverage segment drove the company’s profit growth, as earnings from this segment alone grew 47 per cent. Improved profitability in soft drinks, as well as demand for its dairy products from all core markets lifted its earnings.

The company’s board has declared an interim dividend of 1.5 Singapore cents per share, unchanged from the interim dividend declared a year ago. The dividend will be paid out on Jun 7.

Earnings per share for the period stood at 5.8 Singapore cents, higher than 3.8 Singapore cents a year ago.

F&N chief executive officer Hui Choon Kit said the company will focus on driving growth across all business units and markets, prioritising productivity improvements and effectively managing foreign exchange and input cost challenges.

Shares of F&N closed flat at S$1.02 on Thursday.