SINGAPORE: Food and drink boost Fraser & Neave FY profits
- Food and drinks lift FY profits
- Asia Pacific Breweries boosts performance
- Looking to expand
Food and beverage sales boosted F&N's profits
Singapore-based Fraser & Neave Ltd has recorded an increase in full-year profits, driven by growth in the firm's food and beverage division.
For the year to the end of September, net profits rose by 26.5% to S$584.5m (US$452m), the soft drinks and food producer reported yesterday (11 November). Operating profits climbed by 34.9% on the previous year, to S$989.3m.
Sales rose by 11% to S$5.70bn, supported by "healthy" sales growth in the food and beverages division. The group also received a boost from its brewing joint venture with Heineken, Asia Pacific Breweries.
Lee Hsien Yang, chairman of Fraser and Neave, said: "We have doubled dairies earnings with the acquisition of Nestle's canned milk businesses in Malaysia and Thailand, in part due to synergies and greater efficiency.
"Using the same approach, the acquisition of [beer business] PT Multi Bintang Indonesia, investment in Cocoaland Holdings and the agreement to acquire King's Creameries not only strengthen our market positions and profitability, but provide a platform to expand into new categories of food products."
In the fourth quarter, net profits rose by 23% to S$144.5m, while operating profits climbed by 1.8% to S$226.7m. Sales remained flat at S$1.55bn.
In July, Kirin Holdings agreed to acquire nearly 15% of privately-held Fraser & Neave for JPY84.6bn (US$967.8m) as part of the Japanese drinks firm's plan to expand overseas.
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