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F&N Posts Lower Net Profit Of RM112.19 Mln For 1Q FY2026

KUALA LUMPUR, Feb 4 (Bernama) -- Fraser & Neave Holdings Bhd’s (F&N) net profit for the first quarter ended Dec 31, 2025 (1Q FY2026) fell to RM112.19 million from RM169.02 million registered in the same quarter a year ago.

Revenue for the quarter under review also slipped to RM1.30 billion from RM1.39 billion previously.

“Group net profit for 1Q FY2026 decreased by 34.1 per cent to RM112.3 million compared with RM170.4 million previously attributed to lower profit from operations, reduced finance income and a higher effective tax rate, driven by higher withholding tax and non-recognition of deferred tax assets in respect of the dairy farm losses,” it said in a filing with Bursa Malaysia today.

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On its lower revenue for the quarter, F&N said the results reflected on mixed performance from F&B Malaysia and F&B Indochina.

“Despite certain channel activities shifting to 2Q FY2026 due to this year’s later Chinese New Year shopping window, F&B Malaysia achieved 5.6 per cent revenue growth, which partially offset the 20.9 per cent decline in F&B Indochina due to softer market conditions and prolonged border closures.

“As a result, group revenue eased 6.2 per cent year-on-year,” it added.

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Commenting on F&B Malaysia, it said that F&B Malaysia delivered 5.6 per cent year-on-year revenue growth in 1Q FY2026, supported by broad-based improvement across key segments.

F&N added that export revenue posted double-digit growth, driven by sustained momentum in major markets, particularly across Africa.

On its prospects, F&N said that conditions in F&B Indochina are expected to stabilise as economic activity normalises and trade channels in Thailand replenish stock levels.

“The new dairy manufacturing facility in Cambodia, which is expected to become operational by end-March 2026, would help restore supply continuity and, together with exports from Malaysia, support an improvement in sales in Cambodia,” it added.

F&B Malaysia’s contribution to the group’s performance is expected to be stable and help mitigate softness from F&B Indochina as conditions there gradually improve.

The second quarter will benefit from the overlapping Chinese New Year and Hari Raya sell-in cycles, together with continued brand-building initiatives and the wider distribution of Magnolia fresh milk.

-- BERNAMA