Fraser and Neave reports fiscal 2Q net profit more than doubled

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Fraser and Neave reported Tuesday its fiscal second quarter net profit excluding exceptional items jumped 138.5 percent on-year to S$35.87 million on higher soft drink and dairy sales.

Including the exceptional items, the quarter’s net profit rose 130.1 percent on-year to S$3.98 million, the company said in a filing to SGX after the market close.

Revenue for the quarter ended 31 March rose 3.4 percent on-year to S$467.35 million, the filing said.

For the dairies business, profit before interest and tax (PBIT) jumped 43 percent on-year to S$73.2 million amid higher sales and improved profitability, F&N said.

“The strong quarter performance from dairies was underpinned by higher profit share from the group’s associate company in Vietnam, Vietnam Dairy Products Joint Stock Company (Vinamilk), as well as stronger performances from Dairies Thailand,” the company said.

However, the loss in the beverage segment widened to S$1.7 million from S$800,000 in the year-ago quarter on costs from the ongoing construction of a brewery in Myanmar and higher costs and promotion expenses, F&N said.

That was despite the beverage segment revenue increasing 6.1 percent  on-year on growth in Soft Drinks Singapore on improved sales of 100Plus and Seasons Iced Lemon Tea, F&N said.

For the fiscal first half, net profit excluding exceptional items rose 81 percent on-year to S$73.82 million, while including those items, it rose 80.9 percent on-year to S$74.04 million, the filing said.

Revenue for the fiscal first half was up 1.9 percent on -year to S$931.77 million, F&N said.

The company declared an interim dividend of 1.5 Singapore cents a share, unchanged on-year.

F&N was cautious in its outlook.

“Consumer sentiments in the Food & Beverage segment is expected to remain challenging with continuing competition as well as volatility in foreign currency movements and raw and packaging material prices,” the company said.


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