F&N earnings up 49% to RM59m

F&N earnings up 49% to RM59m

Tags: 100PLUS Fraser & Neave soft drinks

Written by The Edge Financial Daily
Thursday, 06 August 2009 20:22

KUALA LUMPUR: FRASER & NEAVE HOLDINGS BHD [] posted net profit of RM59.12 million in the third quarter ended June 30, 2009, up 49% from RM39.65 million a year ago as it benefitted from higher soft drinks sales volume, improved sales mix and increased productivity.

It said on Aug 6 that revenue was higher at RM921.11 million compared with RM884.58 million while earnings per share were 16.6 sen versus 11.1 sen.

"Group operating profit increased 43% over the previous year as the group benefitted from higher soft drinks sales volume, improved sales mix and increased productivity," it said.

Group revenue registered a modest growth of 4.1% over the corresponding quarter last year in spite of negative GDP growt h in the core markets of Malaysia and Thailand.

Soft drinks sales benefitted from the unusually hot weather and successful marketing and promotional activities. Sales volume and revenue grew an encouraging 14% and 18% respectively. 100PLUS sales volume was up 36% against the same period last year.

The dairies division revenue declined 4%, due to lower export sales and higher trade discounting in the domestic markets. However, domestic sales volume was stable.

However, the glass division volume was affected by lower sales of the Thai plant and the reduction of capacity in Malaysia following the closure of the Petaling Jaya furnace. Revenue was however maintained due to overall higher selling prices.

For the nine months to June 30, 2009, group revenue grew 2% to RM2.75 billion against a backdrop of a regional economic recession. Soft drinks division registered a high single digit revenue growth but lower exports affected overall sales of the dairies division.

Group operating profit before unusual items, improved by 30.5% to RM262.6 million as all core business divisions registered double digit improvements. After accounting for unusual items, group operating profit grew by 21.7% to RM244.9 million.

In the first nine months of FY08/09, the Group has already matched the attributable profit for the full FY07/08 year.

"The group is confident, barring unforeseen circumstances, to perform better than last year," it said.