F&N full-year earnings surge on higher sales

  • Business
  • Saturday, 15 Nov 2003

Singapore’s third biggest conglomerate, Fraser & Neave Ltd (F&N), reported a 38% jump in full-year profit yesterday, propelled by higher sales of property and soft drinks, and strong Asian demand for its beer. 

For its financial year to Sept 30, the 120-year-old group chalked up a net profit of S$333mil, compared with S$241mil the prior year, on 4.5% higher revenue of S$3.6bil. 

Besides higher sales, the profit figure was also boosted by a S$60mil one-off gain, partly from the sale of the group's 1% stake in OCBC Bank, Singapore's third biggest lender. 

And the group expects its core earnings to improve further in 2004. 

F&N is one of Singapore’s best performing stocks this year, with its share price up 50% since January, outpacing the key Straits Times Index’s 30% gain over the same period. The counter closed at S$11.90 yesterday, down 10 cents, ahead of the results announcement. 

F&N’s crown jewel is its 37.9% stake in Asia-Pacific Breweries Ltd (APB), maker of Singapore’s famous Tiger beer, through a joint venture with Heineken NV, which owns 42.5% of the brewery. 

APB, with 14 breweries in eight countries, registered a net profit of S$94.14mil for the year, up 10.9% on S$84.90mil previously. 

In addition to selling popular soft drinks such as Coca-Cola, Sprite and 100-Plus, F&N is one of Singapore’s top property developers with seven shopping malls in the city-state, pitting it against City Developments Ltd and CapitaLand Ltd. 

The property division generated about half the group's profit, including a shopping mall sale, followed by breweries’ one-third, with the rest from soft drinks, publishing and printing. 

F&N has proposed a final dividend of 30 Singapore cents per share, bringing the year's total payout to 50 cents. – Reuters  

For another perspective from The Straits Times, a partner of Asia News Network, click here.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Next In Business News

Wall St week ahead: Fed meeting looms for stocks
After the pandemic, a wave of spending by older consumers
Out-of-control shipping costs fire up prices from coffee to toys
G7 leaders commit to raise climate finance contributions
G7 rivals China with grand infrastructure plan
FMM: RM200b stimulus plan needed for SME manufacturers
No trading for KLTM next week
CPO futures likely to experience technical correction next week
Essential economic contributors must be protected
Oil price hits multi-year highs in third weekly gain on demand recovery

Stories You'll Enjoy