F&N Projected To Post Weaker 4Q FY2025 Due To Thailand-Cambodia Clashes - CIMB Securities

KUALA LUMPUR, Aug 4 (Bernama) -- CIMB Securities Sdn Bhd expects Fraser & Neave Holdings Bhd (F&N) to post flattish quarter-on-quarter (q-o-q) results in its fourth quarter ending Sept 30, 2025 (4Q FY2025).

Although it expects F&N to enjoy better margins and higher sales volume versus its low base in the third quarter, this is expected to be offset by weaker Indochina sales due to Thailand-Cambodia border disruptions, which have affected exports to Cambodia and reduced Thailand’s tourist arrivals.

The report also said the recent strengthening of the ringgit should lead to lower input costs; internal cost optimisation initiatives should also help cushion ongoing dairy farm losses, it added.

“In addition, we expect the effective tax rate to normalise in the 4Q FY2025, supported by the recognition of deferred tax assets to offset losses from the company’s dairy farm operations,” said CIMB Securities.

F&N’s net profit fell to RM84.81 million in 3Q FY2025 from RM121.62 million in 3Q 2024, amid lower earnings and unrecognised deferred tax assets concerning the current year’s dairy farm losses. 

Revenue also dropped 4.5 per cent to RM1.24 billion from RM1.30 billion previously, primarily due to lower revenue contribution from both food and beverages in Malaysia and Indochina, reflecting cautious post-festive consumer sentiment and lower tourist arrivals in Thailand.

CIMB Securities said with F&N’s 3Q FY2025 results falling short of expectations, it lowered its financial year 2025-2027 earnings per share estimates to account for a higher tax rate, higher losses from its dairy farm, and weaker sales volumes in both Malaysia and Indochina.

-- BERNAMA