SINGAPORE: F&N FY profit flat, sales up

Fraser & Neave has posted a relatively flat full-year net profit. The Singapore-based company said today (11 November) that group net profit for the year to 30 September came in at 2.6% up year-on-year at S$299.5m (US$175.9m) on revenues up by 23.9% to S$4.27bn from S$3.45bn.

Property sales in Singapore and growth in the group's food and beverage businesses were credited for the revenue increase.

On the soft drinks front, sales increased by 3% and, together with a price increase in the middle of the year to mitigate across-the-board increases in raw materials and packaging costs, revenue and PBIT (profit before interest and tax) were up by 7% and 4% respectively.

The group's breweries, meanwhile, boasted high sales revenues of S$1.72bn and PBIT of S$235m, an increase of 11% and 14% respectively over last year.

"Except for Thailand, with a marginally lower profit as a result of higher brand promotion costs, all regions performed better than last year," the company said. "In Singapore and Malaysia, despite declining sales, PBIT improved from effective cost management. Higher sales and price increases in Papua New Guinea and New Zealand, and a strong NZ$ exchange rate, led to significant improvement in PBIT. Strong double digit growth was recorded in sales and PBIT for Cambodia and Vietnam. In China, sales growth of more than 30% and profits from investments in Kingway Brewery Limited and Jiangsu DaFuHao Breweries Co. Ltd pared losses down significantly."

The company maintained a positive outlook for the future, with the directors expecting attributable profit before exceptional items in the new financial year to be higher than the year just ended.

A final dividend of S$0.35 per share was declared.