Kuala lumpur: CIMB Securities Sdn Bhd anticipates that Fraser and Neave Holdings Bhd (F and N) will report relatively flat quarter-on-quarter results for its fourth quarter ending September 30, 2025 (4Q FY2025). While better margins and higher sales volume compared to the third quarter are expected, the positive impacts are likely to be counterbalanced by weaker sales in the Indochina region. Ongoing border clashes between Thailand and Cambodia have disrupted exports to Cambodia and reduced tourist arrivals in Thailand, affecting F and N’s sales performance.

According to BERNAMA News Agency, the recent strengthening of the ringgit is projected to reduce input costs. Additionally, F and N’s internal cost optimisation strategies may help mitigate ongoing losses from its dairy farm operations. CIMB Securities also notes that the effective tax rate is expected to normalise in 4Q FY2025, aided by the recognition of deferred tax assets to offset losses from the company’s dairy farm operations.

In the third quarter of FY2025, F and N’s net profit dropped to RM84.81 million from RM121.62 million in the same period of 2024. This decline was attributed to lower earnings and unrecognised deferred tax assets related to the year’s dairy farm losses. Revenue also decreased by 4.5 per cent, falling to RM1.24 billion from RM1.30 billion previously. The drop in revenue was primarily due to lower contributions from food and beverages sectors in both Malaysia and Indochina, reflecting cautious post-festive consumer sentiment and reduced tourist arrivals in Thailand.

CIMB Securities has adjusted its earnings per share estimates for F and N for the financial years 2025-2027. This revision accounts for a higher tax rate, increased losses from the dairy farm, and reduced sales volumes in Malaysia and Indochina.