KUALA LUMPUR: Fraser & Neave Holdings Bhd’s (F&N) net profit for the second quarter ended March 31, 2026 eased to RM96.27 million compared to RM140.33 million a year ago.
Revenue fell 7.6% to RM1.23 billion against RM1.33 billion last year, mainly due to weaker performance in Indochina’s food and beverage (F&B).
Revenue for Indonesia F&B declined 16.9% amid softer market conditions and prolonged border closures, while F&B Malaysia recorded a 1% decline.
“Core beverage and dairy businesses saw sustained demand in domestic markets despite ongoing global and regional geopolitical uncertainties and cautious consumer sentiment,” the company said in a Bursa Malaysia filing.
The group posted a lower net profit of RM208.46 million for the first half of its 2026 financial year ended March 31 versus RM309.35 million a year ago. Revenue declined 6.9% year-on-year to RM2.53 billion from RM2.72 billion.
The conglomerate, with its F&B speciality, said F&B Malaysia achieved a 2.3% revenue growth, which partially offset the 19% decline in F&B Indochina over the first half of FY2026 due to softer market conditions and prolonged border closures.
On the group’s performance, CEO Lim Yew Hoe said although external factors have impacted near-term performance, the group’s core fundamentals remain sound, and it is managing these challenges proactively.
“Despite heightened cost pressures and more cautious consumer spending, our core dairy and beverages business in Malaysia remains stable, reflecting sustained demand, supported by the strength of our market position.
“At the same time, cost discipline and our ongoing strategic investments continue to underpin the group’s long-term growth.”
Lim said the group is confident in delivering stronger performance over the medium to long term.
“Our investments today, including F&N AgriValley and our dairy facility in Cambodia, are strengthening supply chain resilience and cost efficiency as we navigate evolving market conditions,” he added.
Lim said the group is proactively managing cost pressures and supply chain disruptions due to heightened global and regional geopolitical uncertainties, which have elevated input costs.
Key cost drivers include packaging materials and key ingredients, with elevated energy costs from liquefied petroleum gas, diesel and natural gas. These cost pressures are being addressed through enhanced operational efficiencies, supply chain optimisation, and disciplined cost management initiatives.
“We remain focused on executing our key priorities while maintaining a prudent and measured approach. We will continue to balance cost pressures with market sensitivities, with any price adjustments, if necessary, implemented gradually and considered only as a last resort,” Lim said.
