Fraser and Neave (F&N) has reported earnings of $84.1 million for the 1HFY2025 ended March 31. Earnings per share (EPS) inched up to 5.8 cents from 5.7 cents on a fully diluted basis.
Revenue rose by 13% y-o-y to $1.21 billion as all segments registered growth.
The beverages segment, comprising beer and soft drinks, saw revenue increase by 28% y-o-y to $429.4 million, due to higher sales volumes mainly from the group’s Chinese New Year campaigns, new products and improved pricing.
Revenue for the dairies segment rose by 8% y-o-y to $643.4 million due to strong domestic canned milk sales in key markets, along with increased volumes in Laos and Cambodia. The maiden contributions from the Malaysia schools milk programme helped as well.
Revenue from the group’s publishing and printing (P&P) segment fell by 1% y-o-y to $95.8 million mainly from the absence of one-off contributions, including Hong Kong title sales and licensing income from Chile, which supported last year’s performance.
Profit before interest and taxation (PBIT) increased by 2% y-o-y to $165.1 million. Food and beverage (F&B) profit grew while P&P profit fell.
The group has declared an interim dividend of 1.5 cents per share, unchanged y-o-y. This will be paid on June 6.
“F&N has delivered a resilient performance despite the challenging market environment. Strong sales, a favourable cost environment, and positive forex movements in our F&B division reflect our ability to navigate external challenges and capitalise on the strengths of our core business,” says Hui Choon Kit, CEO of F&N.
“While global uncertainties persist, including geopolitical tensions and trade challenges, we continue to take measured steps to address these complexities. Our disciplined approach to risk management and our focus on operational resilience position us well for long-term growth,” he adds, citing the arrival of 2,500 dairy cattle at F&N AgriValley, the group’s integrated farm, in April.
“This milestone supports our ambition to build a sustainable, vertically integrated fresh milk supply chain in Southeast Asia. With an investment of RM1.7 billion (about $510 million) in smart farming and sustainable agriculture, we are reinforcing our growth strategy and commitment to regional food security,” Hui continues.
Shares in F&N closed at $1.24 on May 8.
