KUALA LUMPUR: Fraser & Neave Holdings Bhd
(F&N) has not ruled out the possibility of targeted price adjustments of between three and four per cent across selected product portfolios in Malaysia and Thailand amid rising commodity and raw material costs.
Chief executive officer Tarang Gupta said the three to four per cent increase was an indicative average based on price adjustments implemented over the past 12 to 15 months, involving selected brands across both markets.
"The group needs to take into account commodity prices, including sugar, tin and energy, which are all on an upward trend. Surely pricing will come into play. The point is that we also have to protect our volumes and consumers,” he said during the question-and-answer session of F&N’s financial year 2026 (FY2026) results briefing here today.
F&N’s net profit for the financial year ended Sept 30, 2026 (FY2026) fell to RM437.09 million from RM508.46 million a year earlier, while revenue declined to RM4.92 billion from RM5.19 billion previously, mainly due to headwinds in its Indochina segment and higher start-up costs in its strategic investments.
Gupta said foreign exchange movements were also among the factors influencing the food and beverages conglomerates' costs and financial performance.
"(When the) Malaysian ringgit weakens, our costs, import costs go up, but if the ringgit weakens, our value conversion (of earnings) from Thailand and Cambodia increases when converted to the local currency,” he said.
He said F&N did not intend to implement blanket price increases, but would instead adopt a targeted approach based on the price elasticity of individual products.
"Products that are (sold) to business-to-business (B2B) customers, such as canned milk, are more price-sensitive as customers require the right taste and brand, while also being mindful of their own business margins.
"So, we have to respect that. Pricing will have to be tested, probably adjusted slightly if commodity prices continue to rise. But we also have to protect absolute profitability and sustain growth,” he added. - Bernama
