KUALA LUMPUR (April 30): Fraser & Neave Holdings Bhd (KL:F&N) said it may resort to raising product prices as rising costs weighed on the food-and-beverage company’s recently-ended quarter.

For now, cost pressures from packaging materials and key ingredients as well as elevated energy costs such as liquefied petroleum gas, diesel and natural gas are being handled through operational efficiencies, supply chain optimisation and cost control initiatives, the company said in a statement.

“We will continue to balance cost pressures with market sensitivities, with any price adjustments, if necessary, implemented gradually and considered only as a last resort,” said F&N chief executive officer Lim Yew Hoe.

Net profit for the three months ended March 31, 2026 (2QFY2026) was RM96.28 million, 31% lower when compared to the same quarter a year earlier, as sales fell faster than its operating costs and expenses.

Revenue dropped 7.6% year-on-year to RM1.23 billion largely dragged by its Indochina segment that covers Thailand, Cambodia and Laos amid softer market conditions and prolonged border closures.

An interim dividend of 30 sen per share amounting to about RM110 million was declared and payable June 3.

For the first six months of FY2026, F&N’s net profit was down 33% to RM208.46 million compared with the same period in FY2025. The company blamed the decline on a tougher operating environment, elevated input costs and foreign exchange losses.

First-half revenue fell 6.9% to RM2.54 billion, dragged by softer economic activity in Thailand and subdued sales in Cambodia amid ongoing border tensions between the two nations.

F&N’s core dairy and beverage businesses in Malaysia remained resilient despite higher costs and cautious consumer spending, supported by sustained demand, cost discipline and ongoing strategic investments, Lim said.

“We remain confident in delivering stronger performance over the medium to long term,” he said. “Our investments today, including F&N AgriValley and our dairy facility in Cambodia, are strengthening supply chain resilience and cost efficiency as we navigate evolving market conditions.”

Shares of F&N fell 22 sen or 0.7% to close at RM31.30 on Thursday, giving it a market capitalisation of RM11.48 billion. The counter has lost more than 11% of its value since the start of the year.