Kuala lumpur: Fraser and Neave Holdings Bhd's (F and N) net profit for the third quarter ended June 30, 2026 (3Q FY2026) rose to RM93.58 million compared to RM84.82 million in the same period a year ago, attributed to a decrease in tax expenses for the quarter.
According to BERNAMA News Agency, the company reported a slight decline in revenue, amounting to RM1.20 billion during the quarter, down from RM1.25 billion previously. This decline was largely due to weaker performance in the Food and Beverage (F and B) Indochina segment, where revenue dropped by 18.4 percent amid softer market conditions and prolonged border closures.
Despite the challenges, F and N's diversified portfolio showed resilience, bolstered by the strong performance of F and B Malaysia, which achieved an 8.4 percent revenue growth. This growth was driven by market share gains, effective commercial execution, and continued momentum in its beverage and dairy portfolios.
F and B Malaysia's revenue increased by 8.4 percent to RM736.2 million, fueled by stronger channel execution, higher export sales, and the accelerated expansion of the Magnolia brand. The growth was further supported by sustained momentum in the beverage and dairy categories, coupled with effective marketing campaigns.
The Malaysian operations strengthened their market position, especially in the zero sugar, liquid milk, and UHT milk categories. The 100PLUS Zero brand maintained its leadership in the zero sugar segment, while Magnolia expanded its household penetration through wider distribution and targeted consumer activation programs.
Looking ahead to the fourth quarter of 2026 (4Q FY2026), F and N acknowledged risks from global and regional geopolitical uncertainties, including the conflict in West Asia. However, cost pressures are expected to remain manageable due to disciplined trade spend management, supply chain optimization, and cost-to-serve efficiencies.
The group plans to drive sales through wider outlet reach, improved route-to-market execution, and accelerating the penetration of Magnolia 100 percent fresh milk across key channels. Price adjustments will be implemented gradually and only as a last resort, considering market conditions and household affordability.
F and N remains focused on strengthening its market position and building long-term resilience. The upcoming commercialisation of the Cambodia dairy plant is expected to enhance local manufacturing capability, improve supply continuity, and support the expansion of the dairy business in Indochina.