Friday, August 5, 2011

F&N 3Q net profit up 11.2% to RM77.85m

KUALA LUMPUR: Fraser & Neave Holdings Bhd net profit for the third quarter ended June 30, 2011 rose 11.2% to RM77.85 million from RM70 million a year earlier due to strong contribution from its property and soft drinks divisions.

It said on Friday, Aug 5 that its revenue for the quarter dipped to RM882.47 million from RM892.77 million due mainly to lower volume of dairy products sold in Malaysia.

Earnings per share was 21.70 sen while net assets per share was RM4.10.

For the six months ended June 30, F&N's net profit jumped to RM316.92 million from RM232.97 million, on the back of revenue RM2.92 billion.

Commenting on its prospects, the company said that while there were signs of slowing economic growth and decline in real disposable income in the region, consumer demand is expected to remain stable in the main markets of Malaysia and Thailand during the fourth quarter.

'For quarter 4 which is the final quarter of this financial year, apart from the busy Hari Raya related sales activities, soft drinks division will run the final production of the Coca-Cola beverages.

'In addition, rebranding activities of all its merchandising material and sales equipment will be completed before the expiry of the transition agreement on Sept 30, 2011,' it said.

Consequently, all sales activities for Coca-Cola products will cease effective Oct 1, 2011 and, as such, the division's revenue and profit thereafter will see an inevitable immediate reduction, it said.

Coca-Cola business makes up about 30% of the revenue of the soft drinks division for the current financial year, it said.

F&N said Dairies Malaysia would focus on managing its business with a view to optimising its current available production capacity as it awaits the completion of its new state-of-the-art production facility in Pulau Indah, Port Klang, in the new financial year.

Dairies Thailand is also expected to continue its current effort in growing its revenue and volume both in Thailand and Indochina, it said.

'Given the strong results for the first nine month of the year, the board is confident that the group's performance for this financial year will be satisfactory,' it said.


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