F&N's H1 net profit slips 3% to $81.6m on higher tax expenses

A $65.8m adverse foreign exchange impact pressured the group's top-line performance.

Fraser and Neave, Limited (F&N) posted a 3% decline in net profit attributable to shareholders before exceptional items to $81.6m for the half year ended 31 March 2026.

In a statement, profit after taxation fell 9% to $113m, on the back of a higher effective tax rate of 28.7%, up from 15.8% in FY2025, following the absence of prior years’ tax write-backs.

Meanwhile, profit before interest and taxation (PBIT) rose 6% to $174.8m, whilst revenue decreased 6% year-on-year to $1.135b from $1.213b.

F&N said the weaker topline performance was due to lower food and beverage (F&B) sales, including a $65.8m adverse foreign exchange impact from changes in accounting treatment for forex movements.

Its food and beverage segment posted a 7% decline in revenue to $994.7m, although its PBIT increased 3% to $169.9m on improved margins.

Within beverages, revenue went down by 12% to $376.9m, whilst PBIT jumped 73% to $52.2m.

Soft drinks revenue rose 4% on higher festive demand and brand campaigns, whilst beer revenue would have increased 2% excluding the forex impact.

The dairies segment recorded a 4% decline in revenue to $617.8m and a 13% drop in PBIT to $117.7m, on the back of weaker export sales in Thailand and higher supply chain costs.

Earnings per share slipped to 5.6 cents from 5.8 cents a year earlier. The group declared an unchanged interim dividend of 1.5 cents per share.

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