KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) is setting its sights on progressively scaling its two key strategic growth platforms, the F&N AgriValley integrated dairy farm and its newly commissioned manufacturing operations in Cambodia to drive sustainable long-term expansion.
F&N chief executive Tarang Gupta said the group's healthy capital structure and prudent gearing provide the flexibility to fund capital investments while navigating geopolitical uncertainties, higher input costs, and a competitive consumer backdrop.
He noted that immediate operational priorities centre on improving productivity at F&N AgriValley and ramping up local production of Gold Coin sweetened creamer in Cambodia, where commercial operations commenced in October 2026.
For the fourth quarter ending Sept 30, 2026 (4QFY26), the food and beverage manufacturer saw its net profit jump 18.16% year-on-year (y-o-y) to RM135.05 million from RM114.29 million in 4QFY25.
The earnings improvement was primarily bolstered by lower quarterly tax expenses and a RM90.5 million pre-tax gain from the disposal of its 50% equity stake in Vacaron Company Sdn Bhd, which offset higher ramp-up expenses at AgriValley and softer Indochina volumes.
Quarterly revenue slipped 3.09% y-o-y to RM1.19 billion against RM1.23 billion in the corresponding period last year. The top line was held back by an 8.9% contraction in Food and Beverages (F&B) Indochina sales due to ongoing border closures affecting deliveries into Cambodia and the translation impact of a weaker Thai baht, although F&B Malaysia edged up 0.9% to RM737.8 million.
On a quarter-on-quarter (q-o-q) basis, top-line performance held broadly steady, easing a marginal 0.8% from the RM1.20 billion reported in the third quarter ended June 30, 2026 (3QFY26). Sequentially, net profit climbed 19.38% from RM113.12 million in 3QFY26, largely lifted by the non-core property disposal gain recognised during the period.
For the full financial year ended Sept 30, 2026 (FY26), group revenue declined 5.25% to RM4.92 billion compared to RM5.2 billion in FY25. Cumulative net profit fell 14.04% y-o-y to RM437.09 million from RM508.47 million, weighed down by strategic investment start-up costs and regional trade disruptions.
In line with the performance, the board recommended a final dividend of 30 sen per share (FY25: 35 sen), subject to shareholders’ approval. This brings total dividends for FY26 to 60 sen per share (FY25: 65 sen), lifting the group’s full-year dividend payout ratio to 50.3% from 46.8% previously.