KUALA LUMPUR (Feb 3): Fraser & Neave Holdings Bhd’s (KL:F&N) revenue for its first quarter ended Dec 31, 2024 (1QFY2025) soared to a record high of RM1.39 billion, driven by festive sales in Malaysia, coupled with sales recovery in Thailand and increased sales in the Indochina market due to the availability of fresh milk supply.

During the period under review, F&N’s quarterly sales were 4.3% higher compared to the RM1.33 billion recorded in 1QFY2024.

Meanwhile, its net profit in 1QFY2025 fell marginally to RM169 million from RM170.74 million a year ago, dragged by higher tax expense, which nearly doubled to RM70.1 million from RM35.33 million.

The higher tax expense was due to the expiration of a Board of Investment (BOI) incentive for its Thailand food and beverage division (F&B Thailand) in June 2024 and higher withholding taxes on dividends repatriated from F&B Thailand.

No dividend was declared for 1QFY2025.

In terms of prospects, F&N said it foresees minimal impacts from recent regulatory changes, such as minimum wage increases, service tax on logistics, and the 40-sen hike in taxes on sweetened beverages.

Nevertheless, the company said it remains vigilant and recognises the risks arising from geopolitical uncertainties, volatility in raw material prices, and fluctuations in foreign currency.

Meanwhile, the progress on the integrated dairy farm project in Gemas is on track, with Phase 1 infrastructure development advancing steadily in preparation for the arrival of livestock. It also said the development of the dairy manufacturing plant in Cambodia is progressing well.

For the remainder of the financial year, F&N said it remains committed to driving growth, enhancing route-to-market capabilities, and optimising operational efficiencies while staying agile in response to market dynamics and geopolitical developments.

Its mid-term strategy will focus on positioning halal packaged foods and dairy as key growth pillars, along with ongoing efforts to create synergies within the group.

Shares of F&N have shed roughly 23% from its peak of RM32.92 in May last year. The stock dropped 22 sen to close at RM25.20 on Monday, valuing the company at RM9.24 billion.