Fraser and Neave has reported increased first-quarter earnings from its dairies division which, lifted overall profits for the group.

For the three months to 31 December, the Singapore-based conglomerate reported a profit before interest and tax (PBIT) increase of 123% in constant currency to S$37.5m (US$26.2m) from its dairies division, helped by lower input costs and improved distribution.

Revenue for the dairies division as a whole was not disclosed, although F&N said lower volumes had an impact on its group sales.

Group PBIT increased 37% to S$53.9m for the three months to 31 December.

Group sales, however, fell to S$488.7m from S$550m, predominantly impacted by negative currency exchange and challenges in its publishing and printing division, as well as lower dairy volumes in some of its markets.

Q1 dairies results by country

  • Thailand: Revenues +2% in constant currency, higher consumer demand and increased distribution. PBIT +16.4% in constant currency, savings in raw materials, cost savings on manufacturing efficiencies and one-off cost recovery.
  • Malaysia: Revenues -5% in constant currency, volume growth impacted by suppressed consumer confidence and currency translation losses. Earnings +62% in constant currency thanks to lower input costs.
  • Singapore: Revenues -39% in constant currency, drop in domestic and export volumes and lower prices as well as higher marketing and operational costs.