On 5 August 2025, Fraser and Neave Limited (“F&N”) announced their third quarter business update for FY2025. There is a slowdown in their financial performance this quarter, as noted that there were increases in the cost of their operations. Costs are likely to continue to increase over the next few quarters given the current macro environment, which will continue to affect their profits. However, F&N still maintains a strong financial position, and there is sufficient buffer in their earnings to sustain the dividend payout.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
Website: General Announcement::9M2025 Voluntary Business Updates (Unaudited)
Financial Highlights
Revenue
| Metrics | Current | Previous |
|---|---|---|
| Revenue | +9.7% | +13.2% |
| Rating | Favorable | Favorable |
Revenue for the first 9 months of FY2025 has increased by 9.7% to SGD1,769 million from SGD1,613 million for the same period in the previous financial year. The increase is smaller when compared to the previous announcement, indicating a smaller increase this quarter when compared to the rest of the financial year. Overall, the revenue metric remains Favorable.
The increase was mainly due to F&B segment growing by 12%, where the beverages segment saw growth that was driven by higher water volumes, strong soft drinks sales from successful Chinese New Year rollout, and higher beer sales, driven by TAPPER. The dairies segment saw an underpinned performance by higher canned milk sales in Thailand and export markets, as well as maiden contribution from the School Milk Programme.
This was offset by P&P’s revenue due to the absence of one-off contributions that had supported the prior year’s performance.
Earnings per share
| Metrics | Current | Previous |
|---|---|---|
| Earnings per share | -3.6% | Unchanged |
| Rating | Unfavorable | Neutral |
Earnings per share for the first 9 months of FY2025 has decreased by 3.6% to SGD0.081 per share. Noted that this period saw a notable increase in costs, where the beverage soft drink segment was impacted by unfavorable sales mix, cushioned by strong beer earnings and lower input costs. This was offset by the diaries segment which saw an increase in earnings supported by robust performance in key markets. The metric shifted towards Unfavorable.
Operating Cash Flows
| Metrics | Current | Previous |
|---|---|---|
| Operating Cash Flows | No Update | -8.3% |
| Rating | Unfavorable | Unfavorable |
Based on the announcement on 5 August 2025, operating cashflows was not included in the business update for the third quarter of FY2025.
The metric was Unfavorable in the previous quarter as operating cash flows for the first half of FY2025 has decreased by 8.3% to SGD128 million from SGD140 million for the same period in the previous financial year.
Gearing Ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 35.0% | 34.5% |
| Rating | Favorable | Favorable |
Gearing ratio as of 30 June 2025 has increased to 35.0%. This metric is computed using total assets of SGD4,994 million and total liabilities of SGD1,748 million. Do note management have provided a gearing ratio of 21.4% using borrowings less cash and bank deposits over total equity. The metric remains Favorable as it is still relatively low.
Interest Coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | No Update | 7.4x |
| Rating | Favorable | Favorable |
Based on the announcement on 5 August 2025, no detailed breakdown of the financial results to determine the interest coverage was provided in the business update for the third quarter of FY2025.
The metric was Favorable in the previous quarter as the interest coverage stands at 7.4 times as of 31 March 2025. This was computed using profit before interest and tax of SGD165 million and finance costs of SGD22 million.
Price-to-Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 0.74 | 0.62 |
| Rating | Favorable | Favorable |
Based on the announcement on 5 August 2025, net asset value per share was not included in the business update for the third quarter of FY2025.
The price-to-book (“P/B”) ratio for F&N became more expensive at 0.74. This is computed using the closing share price of SGD1.47 as of 16 September 2025 and the net asset value of the Group of SGD1.99 per share as of 31 March 2025. This is Favorable as you will be paying a discount to its book value.
As of 16 September 2025, the Market Capitalization is approximately SGD2,141 million.
Website: Yahoo Finance: Fraser and Neave, Limited (F99.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 3.74% | SGD 0.055 |
| 2024 | 3.74% | SGD 0.055 |
| 2023 | 3.40% | SGD 0.050 |
| 2022 | 3.40% | SGD 0.050 |
| 2021 | 3.40% | SGD 0.050 |
| 2020 | 3.74% | SGD 0.055 |
F&N have been paying relatively consistent dividends over the last few years. With the total dividend payout in the calendar year 2025 of SGD0.055 per share and using the closing share price of SGD1.47 as of 16 September 2025, this translates to a recurring dividend yield of 3.74%. For my benchmark, a general reasonable yield would be around 4.75%. The dividend yield is Unfavorable.
Website: Reasonable Dividend Yield 2025Q3 – 4.75%
If using dividend yield of 4.75% as a benchmark, based on the dividend of SGD0.055 there is potential for F&N to see its share price drop by another 21.2% to SGD1.16.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 1.47 | – |
| 4.75% | 1.16 | -21.2% |
| 5.75% | 0.96 | -34.9% |
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Revenue | +9.7% | Favorable |
| Earnings per share | -3.6% | Unfavorable |
| Operating Cash Flows | No Update | Unfavorable |
| Gearing ratio | 35.0% | Favorable |
| Interest coverage | No Update | Favorable |
| Price to Book Ratio | 0.74 | Favorable |
| Overall | Neutral |
Overall, the metric shifted towards Neutral to invest in F&N, due to the notable decrease in earnings per share. As of the date of report, there are sufficient earnings by F&N to sustain their dividends.
Background
Fraser and Neave, Limited (“F&N” or the “Group”) had its origins more than a century ago, in the spirited decisions of two enterprising young men, John Fraser and David Neave, who diversified from their printing business to pioneer the aerated water business in Southeast Asia in 1883. From a soft drinks base, F&N ventured into the businesses of beer in 1931, dairy in 1959, property development and management in 1990, and publishing & printing in 2000. In 2012, the Group divested a substantial part of its beer business. In 2013, as F&N celebrated its 130th year of operation, it also welcomed its new majority shareholder, the TCC Group, which is engaged in food and beverage, real estate, industrial trading and consumer products, insurance and agriculture. In January 2014, through a distribution in specie and re-listing of Frasers Property Limited by way of introduction on the Singapore stock exchange, the Group demerged its Properties business.
Today, F&N is a leading Southeast Asian consumer group with expertise and prominent standing in the Food & Beverage and Publishing & Printing industries. Leveraging its strengths in marketing and distribution, research and development, brands and financial management, as well as years of acquisition experience, the Group provides key resources and sets strategic directions for its subsidiary companies across both industries.
Listed on the Singapore Stock Exchange, F&N ranks as one of the most established and successful companies in the region with an impressive array of renowned brands that enjoy strong market leadership. F&N is present in 11 countries spanning Asia Pacific and the Americas, and employs people worldwide.
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Website: Fraser and Neave Limited (SGX: F99): 2025 Half Year Result
