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KUALA LUMPUR: Fraser & Neave Bhd said sales grew 15% in the third quarter, but rising costs kept a lid on profit growth.
Net profit in the three-month ended June 30 improved 2.4% to RM96.2mil compared with RM93.8mil made a year ago.
Revenue jumped to RM1.06bil, boosted by maiden contribution from its food business under the Sri Nona brand.
"The group’s profit before tax was marginally lower by 0.7%, at RM119.2mil due to commodity price pressures, restructuring costs and lower export margins," F&N said in a filing with Bursa Malaysia today.
On its outlook, F&N said the rising Covid-19 cases in our markets - Thailand and Malaysia - to impact consumer sentiment amidst growing unemployment and lesser disposable income.
"Sales to the out-of-home channels will likely to be further impacted," it said.
"Furthermore, any further uptrend for key commodities cost will put pressure on our efforts to manage profit margins," it added,