F&N says price hikes only as last resort amid manageable cost pressures


PETALING JAYA: Fraser & Neave Holdings Bhd (F&N) said any price adjustments to its products would only be implemented gradually as a last resort after taking into account market conditions and household affordability.

"Cost pressures are expected to remain manageable, supported by disciplined trade spend management, supply chain optimisation and cost-to-serve efficiencies," it said in its Bursa Malaysia results filing.

The fast moving consumer goods maker added its prospects will be underpinned by sustained consumer demand, continued market share gains and the commercialisation of its new dairy plant in Cambodia by the end of the quarter.

The group noted it will continue prioritising wider outlet reach, stronger route-to-market execution and accelerating the penetration of Magnolia 100% Fresh Milk across key channels.

The upcoming Cambodia dairy plant is expected to strengthen local manufacturing capability, improve supply continuity and support the expansion of its dairy business in Indochina, despite ongoing geopolitical uncertainties and cautious consumer sentiment.

For the third quarter ended June 30, 2026 (3QFY26), F&N posted a 10.3% year-on-year (y-o-y) increase in net profit to RM93.6mil or 25.5 sen earnings per share due to tighter cost control, lower financing costs, and efficiency gains.

Revenue declined 3.8% y-o-y to RM1.2bil due to softer demand and lower sales volumes in certain product categories, particularly beverages and dairy. Pretax profit rose 2.2% y-o-y to RM134.5mil.

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