F&N to focus on innovation, diversification and transformation

PETALING JAYA: Innovation, diversification and transformation will remain key for consumer group Fraser & Neave Holdings Bhd (F&NHB) as it looks to continue building future value.

Chief executive officer Lim Yew Hoe said innovation in particular, has been central to driving the group’s relevance and competitive edge.

This includes consistently refreshing its product portfolio and introducing new items like plant-based milk and sugar-free beverages.

According to Lim, despite geopolitical uncertainties and macroeconomic headwinds, the group’s strong financial position, healthy cash flow from core operations, and disciplined cost management and asset optimisation has placed them in a solid position to weather these challenges.

“Against this backdrop, our priority for financial year (FY) 2026 is to accelerate market share growth, with a strong focus on ensuring supply continuity across Indochina while building our next pillars of growth,” he said in a statement.

He added at a broader level, the group remains committed to creating sustainable long-term value through disciplined strategic investments that expand its consumer reach and reduce environmental impact.

As for the group’s progress so far, Lim said the new beverage plant in Butterworth now serves markets in northern Peninsular Malaysia, thus reducing reliance on the Shah Alam plant and decreasing logistics-related emission.

Its 2,000-acre F&N AgriValley integrated dairy farm is also beginning to bear fruit, thus enhancing the group’s ability to provide high-quality fresh milk at competitive prices.

“Other than the domestic Malaysia market, milk from F&N AgriValley is channelled into the production of Bear Brand Sterilised Milk, supporting export expansion into Cambodia and positioning the business to capture new opportunities in regional markets,” the group said.

Furthermore, the construction of the F&N Foods (Cambodia) Co Ltd facility located in the Suvannaphum Special Economic Zone, Kandal, is on track to be completed by March this year.

“Building on F&NHB's strong distribution presence in Cambodia, the new plant enhances scalability and resilience while strengthening our regional footprint for future growth.”

Meanwhile, on its earnings, the consumer group posted RM5.2bil in revenue for FY2025 and a profit of RM508.46mil.

The board declared a higher final single-tier dividend of 35.0 sen per share for the financial year ended September 30, 2025.

“This brings the total dividend for FY2025 to 65.0 sen per share amounting to a total payout of RM238.4mil. The final dividend of approximately RM128.4mil is scheduled to be paid on February 10, 2026,” Lim noted.