Kuala lumpur: Fraser and Neave Holdings Bhd (F and N) has reported a decline in its net profit for the first quarter ended December 31, 2025, with figures falling to RM112.19 million, compared to RM169.02 million recorded in the same period last year. The company's revenue for the quarter also saw a decrease, slipping to RM1.30 billion from RM1.39 billion in the previous year.

According to BERNAMA News Agency, the decline in F and N's net profit, down by 34.1 percent to RM112.3 million, was attributed to lower profit from operations, reduced finance income, and a higher effective tax rate. The company highlighted the impact of increased withholding tax and the non-recognition of deferred tax assets related to dairy farm losses. The reduced revenue was a result of mixed performances from F and B Malaysia and F and B Indochina.

Despite the decline, F and B Malaysia achieved a 5.6 percent revenue growth, partially offsetting a 20.9 percent decline in F and B Indochina, which faced softer market conditions and prolonged border closures. This resulted in an overall group revenue decrease of 6.2 percent year-on-year. F and B Malaysia's growth was supported by improvements across key segments and substantial export revenue growth, particularly in Africa.

Looking ahead, F and N anticipates stabilization in F and B Indochina as economic activities normalize and trade channels in Thailand restock. The company expects its new dairy manufacturing facility in Cambodia, set to be operational by the end of March 2026, to help restore supply continuity and boost sales in Cambodia alongside exports from Malaysia.

F and B Malaysia's stable performance is expected to mitigate the softness in F and B Indochina. The second quarter is projected to benefit from overlapping Chinese New Year and Hari Raya sell-in cycles, along with ongoing brand-building initiatives and wider distribution of Magnolia fresh milk.