1 week Ago
PETALING JAYA: Fraser & Neave Holdings Bhd (F&N) posted slightly weaker results for the second quarter ended March 31, 2025 (2Q25) with a lower net profit of RM140.34mil or a basic earnings per share of 38.30 sen.
This reflected a 15.16% year-on-year (y-o-y) dip from RM165.41mil during the same quarter or the previous year.
Its revenue came out to RM1.33bil for 2Q25. In a Bursa filing, the quarter’s weaker revenue was primarily due to slower festive sales experienced by Food & Beverages Malaysia, flooding in East Malaysia and lower sales from Food & Beverage Indochina (F&B Indochina).
The lower profit, on the other hand, was impacted by the full utilisation of Thailand’s Board of Investment incentive for F&B Indochina since 3Q24, as well as withholding taxes on dividends repatriated from F&B Indochina. As for the second half of the year ended March 31, 2025 (2H25), F&N recorded a lower net profit of RM309.36mil from RM336.
15mil in 2H24. But positively, its revenue for the period had seen an increase by 1.44% y-o-y to RM2.
72bil in 2H24 as compared to RM2.69bil previously. While the full utilisation of incentive and withholding taxes on dividend repatriated for F&B Indochina during the quarter impacted the group’s cumulative profit, revenue continued to increase due to growth in sales across business units in 1Q25 as well as higher exports.
F&N declared a single-tier dividend of 30 sen per share for the financial year ending September 30, 2025. The dividend amounting to approximately RM110mil will be paid on May 30, 2025. Commenting on the results, F&N chief executive officer Lim Yew Hoe said the latest results underscores the group’s strong financial position, robust cash flow and clear strategy direction.
"Our performance reflects the resilience of our core businesses in generating and capturing value, even amidst weaker trade and consumer sentiments. This shows that the confidence of the group to invest in the various large-scale future-looking investments was well placed,” he said in a statement. Looking ahead, Lim said the group will continue to take a prudent approach in capturing value from existing businesses while building future growth pillars.
“At the same time, we remain focused on driving growth, strengthening route-to-market capabilities, optimising assets and operational efficiencies, and continue to invest in areas that will support long-term value creation and strengthen the group’s fundamentals,” he added. F&N’s ongoing investments – which include the integrated dairy farm in Gemas, dairy manufacturing plant in Cambodia and beverages plant in Penang- are said to complement the group’s existing operations and will position the group for future success. He added that the development of the manufacturing plant in Cambodia is on track for commercial start in early 2026, while the Penang plant is scheduled to be commissioned by August 2025.
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