F&N full-year profit falls 6.4% despite higher sales; company to continue investing in region

SINGAPORE - Beverage and publishing company Fraser and Neave (F&N) saw a drop in full-year profit after higher tax expenses offset growth in sales.

Net profit for the 12 months to Sept 30 fell 6.4 per cent to $141.3 million from $150.9 million a year earlier, the company said on Nov 12.

Profit before interest and tax rose 3.7 per cent to $308.1 million, driven by higher food and beverage (F&B) sales, as well as a more favourable commodity and currency environment, F&N said.

But after-tax profit declined 4 per cent to $210.4 million, due mainly to higher tax expenses arising from the expiry of a tax incentive at a subsidiary in Thailand.

The firm’s new chief executive Rahul Colaco, who took over from Mr Hui Choon Kit on Oct 1, said the company will continue to strengthen its brands, leverage digital and sustainability initiatives, and pursue opportunities that drive growth.

The directors have proposed a final dividend of four cents per share, bringing total dividends for financial year 2025 to 5.5 cents per share. This is unchanged from FY2024.

Group revenue rose 7.4 per cent to $2.32 billion from $2.16 billion in the previous fiscal year.

This was largely driven by the robust performance in its F&B segment, which achieved a 9 per cent increase in revenue to $2 billion.

Within the F&B segment, beverages, which comprise beer and soft drinks, posted a 16 per cent increase in revenue to $772.1 million.

In Myanmar, the group’s Tapper beer, launched in mid-2024, continued to gain traction and contributed to higher beer volumes, F&N said.

Across the region, the firm also introduced a range of product and packaging innovations during the year, including smaller on-the-go formats, new flavours, and zero-sugar beverage options to strengthen its presence in the fast-growing health and wellness segment, it added.

It also expanded its plant-based portfolio in Malaysia in September 2025, following its successful introduction in Singapore and Thailand.

Dairy revenue rose 6 per cent to $1.28 billion, underpinned by solid canned and liquid milk sales across Singapore, Malaysia and Thailand, and the maiden contribution from the Malaysia School Milk Programme, F&N said.

Looking ahead, F&N said it continues to make strong progress at its integrated dairy farm in Gemas, Negeri Sembilan, which remains on track towards commercial scale-up. The farm had its first commercial herd of 2,500 dairy cattle in April 2025, and herd expansion has since progressed well, F&N said. It now houses over 6,500 cattle.

F&N is also strengthening its regional manufacturing capabilities with the development of a new dairy manufacturing facility in Cambodia.

Construction of the plant is progressing as planned, with operations expected to start in the first quarter of 2026, it said. The facility, located within the Suvannaphum Special Economic Zone, will produce, distribute and market F&N dairy products, initially focusing on canned milk, with plans to expand into other dairy products in the future.

In Malaysia, F&N is also expanding production capacity. The group’s new beverage manufacturing facility in Butterworth, Penang, was commissioned in August 2025 and has started operations.

The plant produces carbonated soft drinks and drinking water for the northern Peninsular Malaysia market, improving production efficiency, shortening delivery routes, and reducing logistics-related emissions.

F&N shares fell 1.3 per cent or two cents to $1.48 on Nov 12, down from its previous close of $1.50.