SINGAPORE (Feb 9): Fraser and Neave (F&N) reported a 16.3% rise in 1Q18 earnings to $26.1 million from $22.4 million a year ago.
1Q18 revenue fell 1.6% to $487 million from $495 million as higher dairy sales in Malaysia, Thailand, ice cream and new markets failed to compensate for the 16% decline in soft drink sales mainly in Malaysia.
Beverages revenue fell 16% to $117 million, dairies revenue rose 5.2% to $293.0 million while publishing & printing revenue dipped 0.2% to $77 million.
Despite lower revenue and the impact of rising input costs, group PBIT jumped 8.8% to $50.5 million as profit from share of associated companies rose to $17.3 million due to contribution of the group’s 19.2% stake in Vietnam Dairy Products Joint Stock Company or Vinamilk.
Profit after taxation, however, inched up 2% to $41.1 million from $40.5 million in the last corresponding period, as a result of higher financing cost of $7.7 million.
In its outlook, F&N says contribution from Vinamilk is expected to increase as the group will equity account its results for the full 12 months in the new financial year.
As a result of restructuring activities undertaken by the printing and publishing business over the past year, the group expects losses to continue to narrow.
Shares in F&N closed 3 cents lower at $2.41.
