SINGAPORE: Asia Pacific Breweries boosted by Vietnam and Thailand in Q3

• Q3 net profits fall 5.6% to SGD123m (US$98.9m)
• Net sales up 9.7% to SGD781.3m 
• Operating profits rise 27.7% to SGD167.5m 
• Double-digit volume growth in Vietnam and Thailand 

Asia Pacific Breweries (APB) has reported a strong rise in operating profits in its third quarter boosted by double-digit volumes growth in Vietnam and Thailand. 

Net profits fell by 5.6% to SGD123m (US$98.9m) in the three months to 30 June, the Tiger brewer reported on Friday (10 August). Sales in the period rose 9.7% to SGD781.3m. 

But operating profits for the company, a joint venture between Fraser & Neave and Heineken, were up 27.7% to SGD167.5m. 

The company has recieved much media attention lately, as it has become the subject of an ownership tussle between Chang brewer ThaiBev and Heineken. 

Net profits in the nine months to 30 June rose 11.1% to SGD419.6m. 

APB said that in Q3 in South and South-East Asia, including its home market of Singapore, volumes grew by 5%, led mainly by double-digit gains in Indonesia and export markets, including Malaysia, Indonesia and Sri Lanka.  

In Indochina, volume growth of 12% was driven by Vietnam and Thailand. Earnings grew by 15% "underpinned by higher volume, better margins from price increase in Vietnam and favourable sales mix in Cambodia", the company said. 

However the brewer suffered in New Zealand. "Challenging market conditions" saw volumes drop 12%. But earnings rose in its Oceania region overall by 20%, helped by "improved margins" in Papua New Guinea and a newly acquired brewery in the Solomon Islands. 

APB detailed the offers that have been made relating to Heineken and ThaiBev, but did not pass further commment. 

Shares in APB were down 1.94% today at SGD50. 

To view the company's full announcement, click here