PETALING JAYA: Fraser and Neave Holdings Bhd
(F&N) remains committed to driving growth, enhancing route-to-market capabilities and optimising operational efficiencies, while staying agile in response to market dynamics and geopolitical developments.
In a filing with Bursa Malaysia, the group said progress on its integrated dairy farm project in Gemas, Negri Sembilan, is on track, with Phase 1 infrastructure development advancing steadily in preparation for the arrival of livestock.
“Additionally, the development of the dairy manufacturing plant in Cambodia is progressing well to strengthen the group’s presence in that market,” it said.
For the first quarter ended Dec 31, 2024 (1Q25), F&N said its revenue rose by 4.3% to RM1.39bil, mainly driven by festive sales in Malaysia and recovery in the domestic Thai economy.
The group’s strong performance was also supported by higher tourist arrivals and increased sales in the Indochina market due to the availability of fresh milk supply.
Its 1Q25 net profit dipped marginally to RM169.02mil from RM170.74mil a year earlier, while group operating profit grew 16.1% to RM243mil.
“This growth is attributed to higher profits from Food and Beverage (F&B) Malaysia and F&B Thailand, partially offset by startup costs associated with the integrated dairy farm.”
F&N’s operating profit was also bolstered by improved sales mix and lower input costs.
“However, the expiration of the board of investment incentive for F&B Thailand has led to higher tax expenses and the incurrence of withholding taxes on dividends repatriated from Thailand,” it said in the filing yesterday.
Looking ahead, the group acknowledged several risks, including geopolitical uncertainties, raw material price volatility and currency fluctuations.
While minimal impact is anticipated from recent regulatory changes, such as minimum wage increases, service tax on logistics and the 40 sen increase in sugar taxes on sweetened beverages, the group remains vigilant.
F&N said its mid-term strategy focuses on positioning halal packaged foods and dairy as key growth pillars, along with ongoing efforts to create synergies within the group.
“With these initiatives, the group is confident in its ability to capitalise on emerging opportunities and navigate potential challenges.”
