Fraser and Neave reports 8.9% Q1 net profit decline  

SINGAPORE – Beverage and food conglomerate Fraser and Neave (F&N) has reported an 8.9% decline in net profit for the first quarter ended December 31, 2025, as weaker beverage and dairy performance weighed on results. 

Net profit fell to S$47.4 million (US$35 million) from S$52 million (US$39 million) in the same period a year ago, the company said in a business update. Group revenue declined 4.1% to S$592.9 million (US$435 million) from S$618 million (US$453 million). 

Revenue in the food and beverage (F&B) segment — which comprises beverages and dairies — was down 5% year-on-year, F&N said. 

F&N attributed part of the decline in the beverages sector to the timing of the Chinese New Year and lower beer volumes, despite favourable foreign exchange translation. 

Meanwhile, the dairies unit experienced softer demand in Indochina markets, partially offset by contributions from the Malaysia School Milk Programme and positive forex effects. 

In contrast, revenue for the group’s publishing and printing segment rose 4%, supported by demand in the Singapore education market. 

The group’s profit before interest and taxes (EBIT) increased 8% to S$98.8 million (US$73 million) from S$91.9 million (US$67 million) a year earlier. This improvement was driven by stronger earnings in the beverages segment. 

Beer earnings “more than doubled” year-on-year, underpinned by margin improvements for F&N’s beer brand, Tapper, which helped cushion weaker performance in soft drinks. 

However, the dairies segment saw earnings decline 13% due to lower sales, increased advertising and promotion costs, and an unfavourable mix, partially offset by a higher share of profit from Vietnamese dairy producer Vinamilk. 

For the publishing and printing segment, losses narrowed as stronger performance in the education space, a higher-margin sales mix, and a leaner print cost structure helped improve profitability. F&N also highlighted gains from its growing sustainable packaging business. 

Separately, F&N confirmed plans to acquire up to an additional 4.6% stake in Vinamilk, raising its effective interest from 20.39% to 24.99%.  

The company said it will purchase approximately 96.1 million shares, representing about 4.6% of Vinamilk’s issued shares, from Platinum Victory, a subsidiary of Jardine Cycle & Carriage. 

F&N said the transaction, funded through a mix of internal resources and borrowings, is expected to be earnings-accretive and reflects its long-term partnership with Vinamilk.  

“The investment reflects F&N’s long-term partnership with Vinamilk and its confidence in the company’s growth trajectory, market leadership, and operational strengths,” the company added. 

F&N noted that the deal also deepens its regional dairy strategy by increasing exposure to Vietnam’s dynamic dairy market and creating opportunities to leverage complementary capabilities across dairy farming, manufacturing, innovation and distribution.  

The company clarified it has no current intention to acquire additional shares in a way that would trigger a public tender under Vietnamese law. 

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