KUALA LUMPUR (Feb 15): Fraser & Neave Holdings Bhd (F&N) is leasing a parcel of industrial land in Cambodia for 50 years for US$3.86 million (RM18.5 million) to set up a manufacturing facility for dairy products.

F&N said the group has entered into an agreement with Suvannaphum Investment Co Ltd to lease the land measuring 32,200 square metres in the Suvannaphum Special Economic Zone.

In a filing with Bursa Malaysia on Thursday, F&N said the manufacturing facility will produce sweetened beverage creamer in cans and pouches. The total cost for the setting up of the facility is estimated at US$37.5 million (RM179.5 million), including the cost of leasing the land, construction of building and purchase of machinery.

"The manufacturing facility is expected to commence operations in the first quarter of 2026," the group added.

F&N posted a net profit of RM170.74 million for its first quarter ended Dec 31, 2023, down 14.11% from RM198.8 million a year earlier, due to one-off non-operating items.

Quarterly revenue, however, grew 9.39% to RM1.33 billion from RM1.22 billion, driven by continuing momentum for food and beverages in Thailand and Malaysia, as well as higher exports aided by favourable foreign exchange translation from a stronger baht.

F&N did not declare any dividend for the first quarter.

Shares in F&N closed 16 sen or 0.55% lower at RM29 on Thursday, giving the group a market capitalisation of RM10.64 billion.