F&N Q2 earnings drop 15pct on higher taxes in Indochina
KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N)'s net profit fell by 15 per cent in the second quarter of the financial year 2025 (FY25) due to higher income tax expenses in its operations in Indochina.
The company's net profit stood at RM140 million for the period compared to RM165 million in the same quarter last year.
This is due to the full utilisation of Thailand's board of investment incentive (BOI) for food and beverages (F&B) Indochina since the third quarter of 2024 and withholding taxes on dividends repatriated from F&B Indochina.
Revenue also declined by 1.35 per cent to RM1.33 billion from RM1.35 billion a year ago, given the slower festive sales experienced by F&B Malaysia, flooding in East Malaysia and lower sales from F&B Indochina.
F&N declared an interim single-tier dividend of 30 sen per share, amounting to RM110 million, which is payable on May 30, 2025.
For the cumulative six-month financial results, the group's net profit declined by 7.6 per cent due to full utilisation of the BOI incentive for F&B Indochina since 3Q25 and higher withholding taxes from repatriation of dividends from F&B Indochina.
Revenue, however, improved by 1.4 per cent to RM2.72 billion from RM2.69 billion, contributed by broad sales growth across business units in 1Q25 including exports.
Chief executive officer Lim Yew Hoe said the group will proactively monitor and manage risks while maintaining financial discipline.
This comes against a backdrop of an uncertain global economic outlook, market volatility, softer trade and consumer sentiment, and an evolving regulatory landscape
"At the same time, we remain focused on driving growth, strengthening route-to-market capabilities, optimising assets and operational efficiencies," it said.
The group added it will continue to invest in areas that will support long-term value creation and strengthen its fundamentals.
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