Fraser & Neave delivers 8% PBIT growth in 1Q2026 on margin gains despite 4% revenue dip
Summary:
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Group revenue slipped 4.1% to S$592.9m in 1Q2026 on timing of Chinese New Year demand and softer markets, but PBIT rose 7.6% to S$98.8m, lifting PBIT margin 180 bps to 16.7%.
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Profit after tax fell 13.6% to S$64.1m and attributable profit before exceptional items declined 8.9% to S$47.4m, with EPS at 3.3 cents, as tax normalisation pushed the effective tax rate up from 10.8% to 29.4%.
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Beverages drove earnings growth, with Beer profits more than doubling on margin improvement, offsetting weaker Soft Drinks; Dairies earnings fell 13% on lower Indochina volumes, higher A&P and an adverse mix, partly cushioned by stronger Vinamilk contributions.
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By geography, Malaysia recorded revenue growth on the School Milk Programme and exports, while Thailand, Singapore and Myanmar saw softer sales; Myanmar and Vietnam nonetheless underpinned PBIT growth via higher Beer margins and Vinamilk earnings.
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F&N completed a S$296m acquisition of an additional 4.6% stake in Vinamilk, lifting its interest to 24.99%, and ramped up its integrated F&N AgriValley dairy farm and Magnolia fresh milk production, while progressing a new dairy facility in Cambodia to enhance supply chain efficiency in Indochina.