F&N posts fourth-quarter profit growth, proposes final dividend of 30 sen

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Highlights

F&N recorded net profit of RM135.05 million for 4QFY2026, up 18.2% year on year, driven by lower taxes.
Fourth-quarter revenue fell 3.1% to RM1.19 billion due to weak sales in Cambodia, while the gain from the disposal of Vacaron Company Sdn Bhd cushioned the impact.
The proposed final dividend of 30 sen per share, down from 35 sen last year, reflects high cost pressures and weak regional performance.

This article was translated from the original. Read the original version by our correspondent here.

Fourth-quarter performance and key factors

As reported by The Edge Malaysia, F&N recorded net profit of RM135.05 million for the quarter ended 30 Sept 2026, up 18.2% from RM114.29 million a year earlier, mainly supported by lower tax expenses.

Revenue for 4QFY2026 fell 3.1% to RM1.19 billion from RM1.23 billion, affected by weaker sales to Cambodia amid ongoing border closures and unfavourable foreign exchange movements. The group's quarterly operating profit was largely unchanged, supported by a RM90.5 million gain from the disposal of its stake in Vacaron Company Sdn Bhd.

The disposal gain helped offset higher costs at F&N AgriValley's dairy operations and weaker performance in the Indochina business. The proposed final dividend of 30 sen per share is lower than the 35 sen paid a year earlier.

Cost pressures and regional growth focus

For the full financial year, F&N's net profit fell 14% to RM437.09 million from RM508.47 million in FY2025, while revenue declined 5.3% to RM4.92 billion from RM5.20 billion. The group said the weaker performance was due to higher costs related to new investments, ongoing sales disruptions in Cambodia and unfavourable currency movements.

Its Malaysian business recorded stronger sales of beverages, water and dairy products, although higher costs at AgriValley weighed on earnings. Meanwhile, the Indochina business was affected by border closures, weaker consumer demand and slower tourism activity in Thailand.

F&N chief executive officer Tarang Gupta said the group's core businesses in Malaysia and Thailand remained resilient despite challenging market conditions. He said investment-related costs weighed on near-term earnings, but are expected to strengthen operational resilience and support sustainable growth in the coming years.

F&N also said AgriValley's dairy operations achieved a milk yield of 30 litres per cow per day, three times the Malaysian industry average. The group began producing Gold Coin sweetened creamer at its new manufacturing facility in Cambodia in October as part of efforts to strengthen its market presence, and will focus on improving efficiency at AgriValley while gradually increasing production and expanding distribution in Cambodia.

MARC Ratings' warning about Malaysia's need to strengthen its fiscal buffer after Budget 2027 highlights that global shocks and a prolonged period of high interest rates and bond yields could continue to weigh on the country's finances. In our earlier coverage, we also explored how broadening the tax base, improving targeted subsidies and strengthening debt management are seen as important to preserving fiscal headroom as government spending commitments rise.

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