KUALA LUMPUR: Fraser & Neave Holdings Bhd’s (F&N) net profit rose 18.2 per cent to RM135.05 million in the fourth quarter ended Sept 30, 2026, from RM114.29 million a year earlier, mainly due to lower tax expenses.
Revenue, however, declined 3.1 per cent to RM1.19 billion from RM1.23 billion, reflecting changes in product mix and promotional activities.
The group’s quarterly operating profit remained largely unchanged at RM173.7 million, compared with RM173.8 million a year earlier, it said in a filing with Bursa Malaysia.
F&N said its performance was partly affected by higher operating costs at F&N AgriValley, weaker results from its food and beverage operations in Indochina and unfavourable foreign exchange movements.
For the full financial year, net profit fell 14 per cent to RM437.09 million from RM508.47 million in FY2025, while revenue declined 5.3 per cent to RM4.92 billion from RM5.20 billion.
The group attributed the weaker full-year performance to higher costs associated with its new investments, continued sales disruptions in Cambodia and unfavourable currency movements.
Its Malaysian operations recorded revenue growth of 3.3 per cent to RM3.06 billion from RM2.96 billion, supported by stronger domestic sales of beverages, water and dairy products.
Growth was also driven by wider distribution and stronger execution across modern trade, traditional trade and hotel, restaurant and café channels.
Export volumes increased on stronger market penetration across Africa, Asean and other markets, although the weaker US dollar against the ringgit weighed on export revenue.
Meanwhile, revenue from its Indochina operations fell 16.6 per cent to RM1.86 billion from RM2.23 billion, affected by continued border disruptions affecting sales to Cambodia, subdued economic conditions and weaker tourism activity in Thailand.
F&N group chief executive officer Tarang Gupta said Malaysia and Thailand remained the group’s two established business pillars, supported by strong brands, consumer loyalty and disciplined commercial execution.
“The volume growth achieved across our core businesses, despite challenging market conditions, reinforces our confidence in their underlying strength,” he said.
Tarang said the group was also focused on stabilising and expanding its two newer businesses, F&N AgriValley and its manufacturing operations in Cambodia.
At F&N AgriValley, milk yields reached 30 litres per cow per day, three times the Malaysian industry average of 10 litres, despite challenging weather conditions.
He said the performance demonstrated the potential of the group’s integrated dairy operations to contribute towards Malaysia’s fresh milk self-sufficiency.
F&N also continued to expand its market presence and distribution network under its Reach Competitively strategy, including through a digitally enabled van sales model targeting underserved on-premise channels.
The group introduced new 100PLUS ZERO flavours, convenient Magnolia milk products for children and an expanded range of NutriWell plant-based beverages to meet changing consumer preferences.
Looking ahead, F&N said it would focus on strengthening commercial execution and improving operational efficiency to support growth.
At F&N AgriValley, its immediate priority is to improve productivity and operating efficiency as its integrated dairy operations expand.
In Cambodia, following the start of local manufacturing operations in October, the group plans to gradually increase production, strengthen distribution and expand its market presence.
F&N said the new manufacturing facility would improve its ability to serve the Cambodian market and support the growth of its Gold Coin business.
The group proposed a final dividend of 30 sen per share, down from 35 sen a year earlier, bringing its total dividend for FY2026 to 60 sen per share.