F&N CEO Lim Yew Hoe
PETALING JAYA: Fraser & Neave Holdings Bhd
(F&N) believes its strong financial position, healthy cash flow from core operations, and disciplined cost management and asset optimisation place it in a solid position to navigate geopolitical uncertainties and macroeconomic headwinds.
Chief executive officer Lim Yew Hoe said the food and beverage company’s priority for financial year 2026 (FY26) is to accelerate market share growth, with a strong focus on wellness-oriented offerings.
“With F&N Magnolia 100% Fresh Milk UHT now complementing our portfolio and the launch of F&N NutriWell in Malaysia, we are well positioned to capture greater opportunities in this segment, supported by continued innovation,” he said in the company’s annual report.
At the same time, Lim said the group’s “food” pillar will continue to evolve through innovation that reflects modern lifestyles and preferences.
“Growth will be driven by more convenient packaging formats and pack sizes, alongside portfolio optimisation to enhance operational efficiency.”
Looking ahead, Lim said F&N also recognises the importance of diversifying beyond its mature markets.
“In this context, F&N AgriValley, the group’s integrated dairy hub in Negri Sembilan, represents a transformative opportunity to strengthen the group’s integrated dairy capabilities and contribute to Malaysia’s food security goals.”
As a whole, Lim said F&N will remain committed to creating sustainable value through strategic investments that broaden its consumer reach and reduce environmental impact.
“While strategic investments may temporarily affect margins, they are integral to the group’s long-term growth trajectory.”
To succeed in these new frontiers, Lim said F&N must strengthen from within.
“Growth must be supported by stronger internal capabilities and more agile ways of working.
“Guided by our strategic pillars of ‘Digital for Growth’ and ‘Reach Competitively’, we are reshaping how the organisation operates to compete more effectively and respond faster to market opportunities.”
Under the “Digital for Growth” pillar, Lim said F&N will be embedding artificial intelligence (AI) and data analytics across its operations.
“Predictive tools now enhance sales forecasting, inventory planning and supply chain responsiveness, while AI-powered workflows are elevating productivity and decision-making across functions.”
Lim said these initiatives have already delivered measurable efficiencies.
“We will continue to expand AI adoption, including predictive maintenance in manufacturing and automated operations in F&N AgriValley.
“At the same time, we are also flattening our supply, value and command chains to enhance speed, transparency and efficiency across the organisation, enabling us to ‘Reach Competitively’ through faster decision-making, reduced complexity and more effective resource allocation.”
In its fourth quarter ended Sept 30, 2025 (4Q25), F&N’s net profit rose 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.
MBSB Research in a recent report said it is maintaining a “positive” outlook on F&N’s long and medium-term trajectory, underpinned by its solid fundamentals, expanding product portfolio and disciplined financial management.
“The group’s core beverage and dairy segments are expected to remain key earnings drivers, supported by continued product innovation, expanding capacity, and participation in the Visit Malaysia 2026 campaign, which should bolster domestic and tourist-driven consumption.
“At the same time, management reiterated its commitment to balance sheet discipline, actively replacing long-term loans with shorter maturities to lower gearing and preserve capacity for future investments,” the research house said.
“Collectively, these initiatives underscore F&N’s ability to leverage its core strengths to sustain earnings resilience, while positioning itself for long-term growth across both domestic and regional markets,” it added.
