F&N Focuses on Strategic Investments for Long-Term Growth
Fraser & Neave Holdings Bhd (F&N) remains strongly focused on achieving long-term, sustainable growth through a commitment to key strategic investments specifically designed to broaden its consumer reach.
The company noted that strategic initiatives, such as the development of F&N AgriValley, are a clear reflection of its ambition to provide Malaysian consumers with access to world-class fresh milk products at more affordable prices.
Crucially, these investments also contribute directly to the nation’s overarching food security goals, aligning commercial strategy with national priorities.
F&N acknowledged in the notes accompanying its latest financial results that while these substantial capital investments may exert a temporary pressure on profit margins, the expected returns are anticipated to materialize in line with the group’s carefully formulated plans and specific milestone targets.
In Malaysia, a significant operational step was taken with the commencement of operations at F&N’s new beverage manufacturing plant in Butterworth, Penang, in August 2025.
This facility is responsible for producing carbonated soft drinks and drinking water specifically for the northern Peninsular markets.
The strategic location and operation of this new facility are expected to yield substantial environmental benefits by reducing the carbon footprint previously generated from transporting finished products all the way from the company’s main plant situated in Shah Alam, thereby enhancing operational sustainability and efficiency.
Integrated Dairy Hub Nears Completion to Boost Local Supply
Progress on the ambitious F&N AgriValley project, the group’s extensive 2,000-acre integrated dairy hub located in Pasir Besar, continues to advance rapidly, with the dairy manufacturing plant nearing its completion phase.
Commercial milk production from this state-of-the-art facility is currently slated to commence during the first quarter of the financial year 2026 (FY26).
The massive farm component of the hub presently houses a herd of more than 4,000 cattle, which includes lactating cows, pregnant heifers, and young calves.
These animals are all being raised in modern, climate-controlled barns specifically engineered to optimize their comfort and productivity, ensuring high-quality milk yield.
Further accelerating the group’s fresh milk production capacity, an additional shipment of 2,500 pregnant heifers is expected to arrive from Chile in November, significantly expanding the existing herd size.
This expansion is designed to accelerate milk production under the highly recognized Magnolia brand.
Regionally, the expansion efforts of F&N extend beyond Malaysia.
The construction and development of the new dairy manufacturing plant under F&N Foods (Cambodia) Co., Ltd., located within the Suvannaphum Special Economic Zone in Kandal, is progressing entirely according to schedule.
This regional facility is scheduled to officially commence its commercial operations in early 2026, further cementing F&N’s commitment to regional supply security and market expansion, demonstrating a clear intent to grow the group’s total dairy capacity across Southeast Asia.
Resilient Financial Performance Despite External Challenges
Fraser & Neave Holdings Bhd delivered a notably resilient financial performance for the full year 2025 (FY25), successfully navigating a complex environment marked by external headwinds, including a generally cautious consumer sentiment across the region and persistent geopolitical tensions.
The group reported a significant surge in net profit for the fourth quarter ended September 30, 2025 (4Q25), which grew substantially by 34.5% to reach RM114.3 million, translating to 31.20 sen per share.
This strong quarterly result brought the total full-year earnings for FY25 to an impressive RM508.5 million, or 138.90 sen per share.
Despite the positive profit growth, quarterly revenue did experience a slight dip of 2.3%, settling at RM1.22 billion, although the full-year revenue remained robust at RM5.2 billion.
Operating profit growth was primarily driven by effective cost efficiencies, disciplined spending across all departments, and the benefit of lower input costs compared to the previous year.
F&N’s core operations remained remarkably stable, despite facing challenges such as higher taxes and the necessary start-up costs associated with commissioning the new dairy farm.
This sustained stability underscores the group’s inherent agility and strong operational fundamentals, allowing it to maintain performance amidst various market challenges.
Reflecting this strong financial performance, the board of directors has recommended a final single-tier dividend of 35.0 sen per share, which is pending approval at the upcoming annual general meeting.
If this recommendation is approved by the shareholders, the total dividends distributed for FY25 will reach 65.0 sen per share, representing an increase from the 63.0 sen per share paid out in the previous financial year, rewarding shareholders for the group’s resilience.
