Fraser and Neave (F99) H1 2025 earnings summary

Executive summary

• Revenue rose 13.2% YoY to $1,212.6m and PBIT increased 1.6% to $165.1m; PAT was $124.8m, down 0.6%.

• Attributable profit before exceptional items was stable at $84.1m; F&B growth and favourable costs were tempered by lower Vietnam associate contribution and P&P losses.

Financial highlights

• Gross profit rose 7.0% to $376.6m, while cost of sales increased 16.3% to $836.0m.

• Profit before tax and exceptional items rose 1.6% to $149.5m; net finance costs were $15.6m versus $15.5m.

• Attributable profit after exceptional items was $83.1m, down 1.7%; H1 2025 exceptional items included a $1.3m restructuring and reorganisation charge.

• Basic EPS before exceptional items was unchanged at 5.8 cents; after exceptional items it was 5.7 cents versus 5.8 cents.

• Operating cash flow was $128.6m versus $140.3m, mainly reflecting higher income tax payments; investing outflow was $87.0m versus $26.6m.

Outlook and guidance

• AgriValley milking is expected to begin in June 2025, with fresh milk gradually introduced under F&N MAGNOLIA; commercial production is expected before end-2025.

• At full operation, AgriValley is expected to house 20,000 milking cows and produce up to 200m litres of fresh milk annually.

• Cambodia dairy plant construction is progressing, with operations expected in early 2026 and an initial focus on canned milk.

• Global trade tensions, financial-market volatility and weaker consumer sentiment are expected to weigh on the rest of FY2025.

• P&P recovery efforts include Education initiatives, sustainable packaging, export growth and operating-efficiency measures.