Kuala lumpur: CIMB Securities Sdn Bhd anticipates that Fraser and Neave Holdings Bhd (F and N) will report stable quarter-on-quarter results in its upcoming fourth quarter ending September 30, 2025 (4Q FY2025).

According to BERNAMA News Agency, although F and N is expected to achieve improved margins and higher sales volumes compared to its low base in the third quarter, these gains are likely to be counterbalanced by diminished sales in Indochina. This decline is attributed to ongoing disruptions at the Thailand-Cambodia border, which have impacted exports to Cambodia and led to a reduction in tourist arrivals in Thailand.

The report further noted that the recent appreciation of the ringgit could result in lower input costs, while internal cost optimization initiatives are expected to mitigate ongoing losses from the company’s dairy farm operations. Additionally, it is projected that the effective tax rate will normalize in the fourth quarter, aided by the recognition of deferred tax assets to offset losses from these operations, as highlighted by CIMB Securities.

F and N’s net profit declined to RM84.81 million in 3Q FY2025, down from RM121.62 million in the same quarter of the previous year. This was due to reduced earnings and unrecognized deferred tax assets related to the current year’s dairy farm losses. Revenue also saw a 4.5 percent decrease, falling to RM1.24 billion from RM1.30 billion, primarily due to a lower revenue contribution from food and beverages in both Malaysia and Indochina. This reflects a cautious post-festive consumer sentiment and decreased tourist arrivals in Thailand.

CIMB Securities indicated that, given F and N’s 3Q FY2025 results did not meet expectations, it has revised its earnings per share estimates for FY2025-2027. The revisions account for a higher tax rate, increased losses from its dairy farm, and weaker sales volumes in both Malaysia and Indochina.