KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&NHB) reported a resilient financial performance for the half-year ended 31 March 2025 (1H FY2025), navigating macroeconomic headwinds and softer trade sentiment with steady revenue and profit growth.
Group Financial Performance
For 1H FY2025, Group revenue rose 1.4% year-on-year to RM2,723.9 million, supported by broad-based sales growth across business units and stronger export contributions in the first quarter. Group operating profit climbed 4.3% to RM434.8 million, driven by improved margins from higher revenues and lower input costs, particularly in F&B Malaysia and F&B Indochina, helping offset losses related to its dairy farm start-up.
In the second quarter (Q2 FY2025), the Group recorded revenue of RM1,334.1 million, a 1.4% decline compared to the same period last year, largely due to softer festive season sales in Malaysia and inventory adjustments in Indochina. Operating profit for the quarter similarly decreased by 7.6%.
Profit before tax for 1H FY2025 increased by 4.9% to RM430.1 million, while profit after tax declined 7.6% to RM310.4 million, reflecting the full utilisation of tax incentives under Thailand’s Board of Investment (BOI) scheme last year. Basic earnings per share stood at 84.5 sen compared to 91.8 sen in 1H FY2024.
Reflecting its continued confidence, the Board declared an interim single-tier dividend of 30.0 sen per share, amounting to RM110.0 million, payable on 30 May 2025.
| Financial Highlights | 1H FY2025 | 1H FY2024 | Change |
|---|---|---|---|
| Revenue (RM million) | 2,723.9 | 2,685.3 | +1.4% |
| Operating Profit (RM million) | 434.8 | 416.8 | +4.3% |
| Profit Before Tax (RM million) | 430.1 | 409.9 | +4.9% |
| Profit After Tax (RM million) | 310.4 | 335.9 | -7.6% |
| Basic Earnings Per Share (sen) | 84.5 | 91.8 | -7.3 sen |
Business Unit Highlights
F&B Malaysia maintained first-half revenue levels supported by volume growth in beverages, water products, and exports. However, Q2 festive season sales were softer than expected due to subdued consumer sentiment and flooding in East Malaysia.
Meanwhile, F&B Indochina, which encompasses Thailand, Cambodia, and Laos, achieved a 3.4% revenue increase year-on-year in 1H FY2025, driven by intensified marketing campaigns and stronger export sales to Cambodia. However, efforts to manage inventory levels in Thailand impacted Q2 revenue.
F&B Indochina continued to be a major profit contributor, registering a 4.5% rise in 1H FY2025 operating profit, while F&B Malaysia improved margins and operational efficiencies, excluding dairy farm start-up costs.
Strategic Developments and Investments
Chief Executive Officer Lim Yew Hoe highlighted significant milestones achieved at F&N AgriValley, a cornerstone of the Group’s strategy to strengthen local dairy supply. Following the arrival of over 2,500 Chilean cattle and the birth of more than 70 calves, milking operations are set to commence in June 2025 under the Magnolia brand.
Additionally, the Group’s new dairy manufacturing plant in Cambodia remains on track to begin commercial operations in early 2026. The Penang beverages plant, scheduled for commissioning by August 2025, will enhance service to northern Peninsular Malaysia markets while lowering the Group’s carbon footprint.
“Our performance underlines the resilience of our core businesses and validates our investments in future growth,” said Lim. “We are committed to supporting Malaysia’s food security agenda by reducing reliance on imported milk and ensuring supply of quality local fresh milk.”
Corporate Social Responsibility Initiatives
During the Ramadan and Aidilfitri periods, F&NHB deepened its community engagement efforts, partnering with organisations such as Bursa Malaysia, Mydin, Lotus’s, and the National Sports Council (MSN) to provide food aid and festive support to over 100,000 individuals.
Chairman YAM Tengku Syed Badarudin Jamalullail reaffirmed F&NHB’s social commitment, noting: “At a time of economic uncertainty, it is more important than ever for businesses to lead with empathy and purpose, standing with the communities we serve.”
Outlook
Looking ahead, F&NHB remains cautious amid a challenging external environment characterised by global economic uncertainty, evolving regulatory dynamics, and softer consumer demand.
The Group will continue to strengthen route-to-market strategies, optimise operational efficiencies, and invest strategically in long-term value creation. While investments such as the integrated dairy farm in Gemas may weigh on margins in the short term, they are expected to underpin sustainable growth over the long term.
“Despite ongoing challenges, we are confident in our ability to navigate market volatility and build a stronger, future-ready F&NHB,” Lim concluded.
