FNHB Dip in Quarterly Profits Amidst Regional Headwinds
Fraser & Neave Holdings Bhd (FNHB) reported a significant decrease in its net profit for the third quarter of 2025, which fell to RM84.81 million from a high of RM121.62 million in the same period last year. This considerable decline was primarily attributed to two key factors: lower overall earnings and the non-recognition of deferred tax assets linked to current year losses from the company’s dairy farm operations. The profit drop was also directly correlated with a reduction in the company’s revenue, which saw a 4.5 percent decline to RM1.24 billion from RM1.30 billion previously. This reduction in revenue was a direct result of lower contributions from its food and beverages (F&B) businesses in both Malaysia and the Indochina region. The company noted that cautious post-festive consumer sentiment in the region, coupled with a decline in tourist arrivals in Thailand, played a significant role in dampening consumer demand and impacting sales performance.
Navigating Geopolitical Tensions and Supply Chain Challenges
The lower revenue and earnings were a direct consequence of both domestic and external factors, highlighting the complex operational environment that FNHB is navigating. The company noted that a decline in tourist arrivals in Thailand had a negative impact on sales in that market. Additionally, exports to Cambodia were particularly affected by the ongoing border closure between Thailand and Cambodia, creating significant logistical challenges. However, the company’s strategic agility helped mitigate the overall decline, as FNHB saw strong double-digit export growth to other markets, which provided a crucial counterbalance to the regional headwinds. In response to the border clashes and associated challenges, the group has proactively implemented new safety protocols and established alternative export routes, including shipping products from Malaysia, to ensure a continuous supply of its products to the Cambodian market and avoid disruptions in its key supply chains.
Cautious Outlook and Forward-Looking Strategy
As it looks ahead, FNHB is maintaining a cautious outlook, citing the persistent uncertainty in economic conditions across both Malaysia and Indochina. This cautious stance is fueled by a number of factors, including persistent consumer caution, rising cost pressures across the supply chain, and broader geopolitical tensions that continue to impact regional stability. In a move to proactively address these challenges, FNHB is committed to maintaining constant vigilance and refining its procurement and sales strategies to better adapt to a volatile market landscape. The company is also emphasizing a long-term strategy centered on innovation and the development of healthier product offerings, a move designed to not only meet evolving consumer preferences but also to secure its market position. These measures are designed to help the group sustain its business and adapt effectively to the dynamic and challenging economic environment.
