F&N’s Q4 earnings treble to $190.6m

Property division ends on high note, buoyed in part by sale of Inpoint Mall

FRASER and Neave’s net profit nearly tripled from $66.7 million to $190.6 million for the last quarter of the fiscal year ended Sept 30.

Revenue for the fourth quarter rose 23 per cent from $1.3 billion to $1.6 billion, driven by the group’s expansion activities.

For the entire fiscal year, the group saw a 17.5 per cent dip in net profit from $436 million to $359 million, compared to restated figures from the previous fiscal year.

However, excluding the fair value adjustment of investment properties and exceptional items, net income for the fiscal year stood at $466 million – a 25 per cent increase over the previous corresponding period.

Revenue for the year inched up 7 per cent to $5.3 billion.

For the quarter, the group’s property division finished on a high note, buoyed by the sale of Inpoint Mall and positive rental reversions and high occupancy rates from commercial assets.

The property division’s revenue and earnings rose 76 per cent and 48 per cent respectively for the quarter, the strongest improvement for the year.

‘The divestments of non-core assets like Inpoint Mall and the Haitang Bay site, for example, enabled us to recycle the capital into new projects with higher returns,’ said chairman of Fraser and Neave Lee Hsien Yang.

‘The closure and sale of our dairy facilities in Vietnam and China are a result of the group’s plan to exit businesses that we assess unable to provide adequate returns for our efforts.’ he said.

The group’s soft drinks divisions revenue grew 7 per cent, driven by promotional activities and a better product mix, while its dairies revenue fell 6 per cent.

The board has recommended a final dividend of 10.5 cents per share, bringing the total dividend for the year to 13.5 cents, the same as the previous year.

The 13.5 cents represents a payout of 40 per cent of attributable profit, lower than last year’s payout of 51 per cent.

‘Although we have successfully navigated the credit crunch and market illiquidity, the global market condition remains fragile. The board feels that it therefore prudent for the group to maintain dividend at the same level,’ Mr Lee said.

Earnings per share for the group stood at 25.8 cents compared to 31.2 cents a year ago, after taking into account fair value adjustments and exceptional items.

The group’s shares closed two cents higher at $3.85 yesterday.

Source : Business Times – 13 Nov 2009