Fraser and Neave, Limited (F&N) has reported a 6% decline in revenue for the first half of 2026, amounting to $1,135.4m, primarily due to unfavourable foreign exchange impacts and lower food and beverage sales. Despite these challenges, the company has maintained its interim dividend at 1.5 pence per share, underscoring confidence in its business fundamentals.
The group’s profit before interest and taxation (PBIT) rose by 6% to $174.8m, bolstered by stronger contributions from Vinamilk and improved earnings in its Beer and Publishing & Printing (P&P) segments. However, profit after tax fell by 9% to $113m, attributed to a higher effective tax rate in the absence of prior years’ tax write-backs.
F&N’s investment strategy included increasing its stake in Vinamilk to 24.99%, enhancing its presence in Southeast Asia’s dairy market. Additionally, F&N has committed up to $15m to acquire a 19.99% shareholding in Comvita, a New Zealand-based natural health company, to strengthen its health and wellness portfolio.
The Beverages segment saw a 12% revenue decline due to forex impacts, although Soft Drinks experienced growth driven by festive demand and product innovation. Meanwhile, the Dairies segment faced a 4% revenue drop, with geopolitical factors affecting Thailand’s exports, though this was partially offset by growth in Malaysia and Singapore.
CEO Rahul Colaco noted the challenging market conditions but highlighted the company’s steady performance and focus on long-term growth through innovation and strategic investments. The interim dividend is set to be paid on 5 June 2026.
