F&N Expands Dairy Operations with Strategic Moves in Southeast Asia

F&N, a major beverage company, reported a 9% decline in first-quarter net profit to $47.4 million, attributed to reduced beer and beverage sales. The company highlighted the impact of Chinese New Year timing, which affected consumer buying patterns.

In a strategic move to bolster its dairy segment, F&N announced plans to acquire up to 4.6% more shares in Vietnam Dairy Products Joint Stock Company (Vinamilk). This acquisition reinforces F&N's commitment to growing its presence in Southeast Asia's dairy market.

Besides its Vietnamese venture, F&N has expanded its dairy operations in Malaysia by adding 2,500 new dairy cattle, bringing the total to over 7,000 cattle. This expansion supports its Magnolia milk production, which started in January.

F&N's chief executive, Rahul Colaco, emphasized the potential for collaboration and growth with Vinamilk, noting the latter's strong platform in dairy production and distribution. The acquisition will be funded through internal resources and borrowings.

Additionally, F&N is progressing with the construction of a new dairy facility in Cambodia, expected to commence operations in the first quarter of the 2026 financial year.

The proposed acquisition from Platinum Victory, a subsidiary of Jardine Cycle & Carriage, involves purchasing around 96.1 million shares of Vinamilk. F&N stated that it does not plan to conduct a public tender offer under Vietnam's regulations.