PETALING JAYA: Fraser & Neave Holdings Bhd
(F&N) will focus on commercial execution and improving efficiencies to reinvest in growth, with immediate priorities including raising productivity at F&N AgriValley and expanding its newly operational Cambodian manufacturing business.
“At F&N AgriValley, the group’s immediate priority is to improve productivity and operating efficiency as the integrated dairy operations scale up.
“In Cambodia, following the commencement of local manufacturing operations in October 2026, the group will focus on progressively ramping up production, strengthening local distribution and expanding its market presence,” it said in a statement.
Chief executive officer Tarang Gupta said the group remained focused on developing its investments while sustaining its established businesses.
“While the costs associated with these investments have weighed on our profitability in the near term, we believe they will strengthen our operational resilience and support sustainable growth in the years ahead,” he said.
For the financial year ended Sept 30, 2026 (FY26), revenue fell 5.3% to RM4.92bil, while profit after tax declined 14.4% to RM440.4mil.
Operating profit dropped 13.6% to RM644.2mil, reflecting investment-related costs, disrupted Cambodian sales and unfavourable foreign-exchange translation, despite a RM90.5mil pre-tax disposal gain.
Malaysian operations recorded 3.3% revenue growth to RM3.06bil, while Indochina revenue declined 16.6% to RM1.86bil amid border disruptions, subdued Thai economic conditions and weaker tourism.
Gupta said the group retained financial flexibility heading into FY27.
“Our healthy capital structure and prudent gearing position provide us with the financial flexibility to fund ongoing capital investments while navigating continued geopolitical uncertainties, rising input costs and a competitive consumer environment.”
F&N proposed a final dividend of 30 sen per share, bringing the full-year payout to 60 sen, compared with 65 sen in FY25. The total dividend payout would amount to RM220mil, representing a payout ratio of 50.3%.
For the fourth quarter of FY26, F&N’s revenue declined 3.1% year-on-year to RM1.19bil, while operating profit remained broadly unchanged at RM173.7mil, including a RM90.5mil pre-tax disposal gain.
Profit after tax rose 16.3% to RM137.3mil, mainly due to lower tax expense for the quarter, it said.
