FRASER and Neave (F&N) and its unit Asia Pacific Breweries (APB) turned in plum financial results for the first quarter, getting off to a roaring start even before the Tiger year has kicked in.
F&N posted a net profit of $138.4 million after fair value adjustments and exceptionals for the period ended Dec 31, 2009. This is 56 per cent higher than a year ago. Revenue grew 17 per cent year-on-year to $1.46 billion.
Strong performance from the food and beverage (F&B) and property arms lifted the bottom line. Profit before interest, taxation, revaluation adjustment and exceptional items (PBIT) for the F&B division rose 55 per cent to $123 million, helped by growth across breweries, soft drinks and dairies.
F&N’s property arm benefited significantly from renewed buying interest in the market, with PBIT surging 73 per cent to $130 million.
The development property business was a big contributor as its PBIT almost doubled. F&N continued to progressively recognise revenue and profit from pre-sold residential projects, such as St Thomas Suites and Caspian in Singapore, Trio at City Quarter in Australia, and Shanshui Four Seasons Phase 1 in China.
The group soft-launched the 81-unit freehold Residences Botanique in December and has sold more than 40 units at an average price of $988 per sq ft. Other launches for the rest of the financial year include a 393-unit freehold project at the former Flamingo Valley site.
The investment property business also fared well, with PBIT rising 42 per cent. Strong rental incomes and occupancies at its retail and office spaces in Singapore and abroad partly accounted for this.
One dull spot in F&N’s results came from the printing and publishing arm. Its PBIT slid 3 per cent to $14 million, largely due to lower print volumes, closures of some operations overseas, and the absence of one-off export sales seen last year.
F&N closed 18 cents, or 4.8 per cent, higher yesterday at $3.92.
Separately, APB’s net profit after exceptionals jumped 45 per cent to $70.1 million. This was backed by a 10 per cent gain in revenue to $639.2 million.
The Indochina market, comprising Cambodia, Laos and Vietnam, was a key performer. Its PBIT shot up by 69 per cent, supported by strong festive sales and lower material costs.
APB also managed to improve operations in New Zealand. PBIT from the market rose 35 per cent from the launch of new brands carrying higher margins, lower costs and translation gains.
Notwithstanding the growth spurt in Q1, APB expects growth rate for the remaining nine months to moderate. Still, it projects a higher attributable profit before exceptionals this year compared with the last.
There were no trades in APB yesterday. The counter last closed at $12.48 on Monday.
Source : Business Times – 12 Feb 2010
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