Fraser & Neave Holdings has posted group pre-tax profits for the nine months to June 2005 of MYR134.736m (US$36.2m), 12.5% higher than the corresponding period a year earlier. The company attributed the profit rise to strong sales of soft drinks and dairy products.

Posting its results with Bursa Malaysia, the company said group sales also rose, by 12.5% to MYR1.45bn for the nine months. However, the company said that, during the first three quarters of the financial year, rising energy prices and raw material costs had created pressure on profitability.

"Measures have been implemented internally to mitigate the effect of such increases by way of productivity improvements and as a last resort, some increase in the selling price," the company said. "Price increases, which include the gradual withdrawal of trade discounting, have been implemented in the current quarter."

For the third quarter to the end of June, sales were 16.5% higher at MYR481.28m, with growth reported from all areas of the business. Soft drinks sales were up by 9%, while dairy products sales rose by 10.6%. Operating income for the quarter increased by 20% to MYR42.66m.

The company also booked property revenues of MYR25.3m during the third quarter from its development of the Fraser Business Park.