Singapore-backed beverage maker F&N considers price increases of up to 4% in Malaysia, Thailand

Singapore-based beverage company F&N is contemplating price increases of up to 4% in Malaysia and Thailand, according to CEO Tarang Gupta. The potential raises follow a range of increases implemented on selected brands across the two markets over the past 12 to 15 months, reflecting the rising costs of goods like sugar, tin, and energy, Gupta explained at a fiscal 2026 results briefing in Kuala Lumpur.

The CEO emphasized that F&N must balance protecting its market share and consumer satisfaction with the need to maintain profitability amidst challenging market conditions. Net profit fell 14% year-over-year to RM437.09 million and revenue declined 5.3% to RM4.92 billion in the fiscal year ending September 30, 2026. The setbacks primarily stemmed from issues in the Indochina segment and increased startup costs for new investments.

Exchange rate fluctuations also play a role, as a weaker Malaysian ringgit raises import costs but boosts profit conversions from Thailand and Cambodia when translated to local currency. Gupta stated that the company will evaluate product-specific price sensitivities before implementing any adjustments. Business-to-business products like canned milk, which require consistent taste and brand quality, are considered more price-sensitive.

The CFO, Tiong Yean Yau, reiterated that cost efficiency remains the top priority before resorting to price hikes. F&N has no plans for a uniform price increase across all products. Instead, the company will test and potentially adjust prices slightly if commodity prices continue to rise, while striving to maintain absolute profitability and steady growth.