F&N Q1 profit falls 9%, beverage player to increase stake in Vietnam dairy company
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Besides its planned acquisition in Vietnam, F&N also received another batch of 2,500 dairy cattle in November in its farm in Malaysia (above).
PHOTO: F&N
- F&N's Q1 profit fell about 9 per cent to $47.4 million due to lower beer and beverages revenue, affected by Chinese New Year timing and softer Indochina dairy demand.
- F&N plans to acquire up to 4.6 per cent more shares in Vinamilk (Vietnam Dairy) for strategic dairy expansion, leveraging expertise and deepening exposure to Vietnam's market.
- F&N expanded Malaysian dairy operations with 2,500 new cattle and started Magnolia milk production. A new Cambodian dairy facility is also progressing.
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SINGAPORE - Beverage company F&N saw its first-quarter profit slip around 9 per cent on lower beer volumes and a change in festive timing, it said on Feb 10.
It recorded a net profit of $47.4 million in the three months to Dec 31, 8.9 per cent lower than the corresponding quarter in 2024.
Its beverages revenue fell 5 per cent, due to the timing of Chinese New Year, the company said.
Chinese New Year falls on Feb 17 and 18 in 2026, compared with Jan 29 and 30 in 2025, which was closer to the preceding October-to-December quarter when consumers stock up beverages ahead of the festive period.
F&N’s dairies revenue also declined by 5 per cent on softer demand in Indochina markets. However, this was partially offset by the Malaysia School Milk Programme and favourable foreign exchange rates of the Malaysian ringgit and Thai baht.
In a bid to strengthen its position as a regional dairy player, F&N also announced plans to acquire up to 4.6 per cent additional shares in Vietnam Dairy Products Joint Stock Company, or Vinamilk.
This highlights the group’s long-term commitment to South-east Asia’s dairy sector, F&N said.
“It also advances F&N’s regional dairy strategy by deepening exposure to Vietnam’s dynamic dairy market and creating opportunities to leverage complementary capabilities across dairy farming, manufacturing, innovation and distribution,” it added.
F&N chief executive Rahul Colaco said: “Vinamilk has built a strong, resilient dairy platform with leading brands and deep capabilities across the value chain.
“As a long-term shareholder, we see meaningful opportunities to deepen collaboration and share expertise across dairy farming, manufacturing, innovation and distribution, creating long-term efficiencies and growth.”
He added that this investment reflects F&N’s belief in disciplined, long-term value creation and its commitment to supporting Vinamilk’s continued growth as a leading dairy company in the region.
The proposed acquisition involves the purchase of up to 96.1 million shares – representing around 4.6 per cent of Vinamilk’s issued shares – from Platinum Victory, a subsidiary of Jardine Cycle & Carriage.
The acquisition is expected to be earnings-accretive and will be funded through a combination of internal resources and borrowings, F&N said.
It added that it currently has no intention to purchase or acquire additional shares in Vinamilk in a manner that would require a public tender offer under the laws of Vietnam.
Besides its planned acquisition in Vietnam, F&N also received another batch of 2,500 dairy cattle in November at its farm in Malaysia.
The farm currently houses over 7,000 cattle, including 2,500 lactating cows that produce over 28 litres of milk per cow daily.
F&N also started commercially producing its Magnolia fresh milk in January, marking a key milestone for its dairy operations.
In Cambodia, the group’s construction of a new dairy facility is also progressing, with operations on track to start in the first quarter of the 2026 financial year.
F&N shares closed 0.7 per cent higher at $1.51 on Feb 10 before the release of the results.
