• Full-year profits after tax amount to US$1.11bn, an 87.6% jump on last year
  • Profits before tax improve by 8% to $1.15bn
  • Sales climb by 10% to $6.27bn
  • Brewery division PBIT up by 23% to $372m
The divestment of Kingway Brewery boosted Fraser & Neaves full-year profits

The divestment of Kingway Brewery boosted Fraser & Neave's full-year profits

Fraser and Neave (F&N) has reported a strong increase in full-year profits, bolstered by higher sales and the divestment of Kingway Brewery.

For the year to the end of September, net profits amounted to US$1.11bn, an 87.6% jump on the previous year. Profits before tax improved by 8% to $1.15bn, the company reported today (15 November).

The Singapore-based firm realised exceptional gains of $175m in the period as a result of corporate and debt restructuring, as well as its share of the sale of its interest in Kingway Brewery Holdings in May. Net sales in the period climbed by 10% to $6.27bn.

In the firm's breweries division, net sales were up by 15% from the previous year, to $1.8bn. Improved margins from price increases, improved sales mix and lower overheads pushed PBIT up by 23% to $372m.

Sales in the soft drinks division jumped by 13% to $759m. Despite rising input costs, in particular sugar and aluminium prices, which spiked 45% and 17% respectively over last year, PBIT in soft drinks climbed by 38% to $112.9m.

The company's food and beverage division accounted for around 45% of group profits in the period, up from 43% last year.

"Food and beverage continued to chalk up solid profits growth this year despite rising input cost and a strong Singapore dollar, by staying focused on its strategic priorities of brand building, consumer-focused innovation, investment and cost management," said F&N's chairman, Lee Hsien Yang.

Click here to view the full earnings release.