Fraser and Neave, the Singapore-based food and beverage group, today (8 February) reported a 7% increase in first-quarter profits from its dairies arm despite muted sales growth from that side of the business.
The company said the profit attributable to shareholders from its dairies division – its largest by sales and earnings – was up 7.1% at SGD20.1m (US$14.2m) for the three months to the end of December. Profit before interest and taxation grew 5.3% to SGD39.4m.
F&N pointed to a “favourable milk-based commodity price variance” and the timing of “advertising and promotion spend”.
The growth in sales from the group’s dairies business was slower. Revenue inched up 0.5% to SGD278.6m.
F&N said the revenue its dairies generated in Singapore increased due to “strong sales growth” from its yogurt products.
In Thailand, F&N saw a “slight increase” in revenue from its dairies business thanks mainly to favourable exchange rates. F&N described volume growth in Thailand as “flat” amid slower consumer spending.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn Malaysia, the revenue from its dairies arm fell 3.8% on the back of “competitive pricing tactics” from rivals and a weaker Ringgit.
In F&N’s last financial year, profits from its dairies business rose but sales fell.
Alongside the announcement of its first-quarter results, F&N also revealed it had lifted its stake in Vinamilk, Vietnam’s largest dairy company, to 17.5%. In December, F&N, already an investor in Vinamilk, acquired a chunk of the shares put up for sale by Vietnam’s sovereign investment fund, the State Capital Investment Corporation. The move took F&N’s stake to 16.35%. F&N has since increased its shareholding further through “a series of open market purchases” in January.