SINGAPORE (May 8): Fraser and Neave, the group with interests from beer and beverages to publishing and printing, reported a 67% fall in 2Q earnings to $3.8 million from a year ago.
This was due to higher finance cost due to borrowings to finance the acquisition of Vinamilk shares, weaker Beverages and concentrate sales and higher marketing expenses.
Revenue for the quarter fell 5.8% to $451.3 million, arising largely from weak consumer sentiment and the absence of contribution from Chinese New Year sales.
F&N says the Beverage and Dairies turned in mixed performances this quarter. The strong uplift in Dairies PBIT of 42% to $40 million, underpinned by growth profit in Dairies Malaysia and Dairies Thailand, was offset by losses in Beverages of $5.2 million, resulting in an overall fall in F&B 2Q17 earnings of 7%. Coupled with Publishing and Printing losses of $5.6 million, group PBIT dipped 22% to $22.2 million.
For the 1H17, earnings came in 29.3% lower at $26.3 million.
F&N has declared an interim dividend of 1.5 cents per share, same as the corresponding period last year.
On Dec 21, the group completed its acquisition additional shares representing about 5.4% interest in Vinamilk through a competitive bid process.
Thereafter, through further purchases from the market, the group continued to increase its stake in Vinamilk. Today, the group’s shareholding in the company has risen to 18.74%.
Vinamilk will only contribute to earnings in the second half of FY17.
Shares of F&N closed 1 cent higher at $2.40.
