KUALA LUMPUR: Fraser & Neave Holdings Bhd
(F&N) said it remains focused on long-term growth through strategic investments aimed at broadening consumer reach.
“Strategic initiatives such as F&N AgriValley reflect our ambition to offer Malaysians world-class fresh milk at affordable prices and contribute to the nation’s food security goals.
“While these investments may temporarily affect margins, returns are expected in line with our plans and milestone targets,” F&N said in the notes accompanying its financial results.
In Malaysia, F&N’s new beverage plant in Butterworth, Penang, began operations in August 2025, producing carbonated soft drinks and drinking water for northern Peninsular markets.
The facility is expected to reduce the carbon footprint previously generated from transporting products from its main plant in Shah Alam.
F&N said the dairy manufacturing plant at F&N AgriValley, the group’s 2,000-acre integrated dairy hub in Pasir Besar, is nearing completion, with commercial milk production slated to begin in the first quarter of FY26.
The farm currently houses more than 4,000 cattle, including lactating cows, pregnant heifers, and calves, all raised in modern, climate-controlled barns designed to optimise comfort and productivity.
In November, an additional 2,500 pregnant heifers from Chile are expected to arrive, further expanding the herd and accelerating milk production under the Magnolia brand.
“Regionally, progress of the new dairy manufacturing plant under F&N Foods (Cambodia) Co., Ltd, located in the Suvannaphum Special Economic Zone, Kandal, is progressing according to plan and scheduled to commence operations in early 2026,” it said.
In the fourth quarter ended Sept 30, 2025 (4Q25), F&N’s net profit surged 34.5% to RM114.3mil, or 31.20 sen per share, bringing its full-year (FY25) earnings to RM508.5mil, or 138.90 sen per share.
Quarterly revenue slipped 2.3% to RM1.22bil, while full-year revenue stood at RM5.2bil.
In line with the group’s performance, the board of directors has recommended a final single-tier dividend of 35.0 sen per share for approval at the upcoming annual general meeting.
If approved, this will bring total dividends for FY25 to 65.0 sen per share, up from 63.0 sen in the previous financial year.
“Reflecting on FY25, the group delivered a resilient performance despite external headwinds, including cautious consumer sentiment and regional geopolitical tensions.
“Operating profit grew on the back of cost efficiencies, disciplined spending, and lower input costs, while core operations remained stable despite higher taxes and start-up costs from the dairy farm. This underscores the group’s agility and strong fundamentals in maintaining stability amid challenges,” F&N said.
