SINGAPORE (Aug 8): Fraser and Neave reported 60% rise in earnings before exceptional items to $60.7 million for 3Q17 from $38 million a year ago.
Including exceptional items of $1.2 billion, which arose largely from the realisation of fair value reserves upon change of interests in Vinamilk, group 3Q17 earnings soared to $1.3 billion, from $38.6 million.
On Dec 21 2016, the group completed its acquisition of additional shares representing 5.4% stakes in Vinamilk through a competitive bid process. Through further purchases from the market, the group continued to increase its stake in Vinamilk. Today, the group has a 18.74% stake in Vinamilk.
Buoyed by higher dividend income owing to the group’s higher interests in Vinamilk and higher dairies earnings following the maiden recognition of profit from its associated company, Vinamilk, group 3Q17 profit before interest and taxation (PBIT) rose 33% to $78.2 million from $58.7 million.
This quarter, aided by the 2.5 months of profit and higher dividend income from Vinamilk, earnings from Food & Beverage (F&B) grew 44% to $85.2 million.
The strong contribution from Vinamilk lifted Dairies 3Q17 PBIT by 66% to $83.1 million from $50.0 million, despite weaker performances from Dairies Malaysia and Dairies Thailand mainly due to higher input costs.
Lower 3Q17 earnings from Beverages, from $9.0 million to $2.1 million, impacted F&B earnings. Beverages 3Q17 earnings were impacted by continuing weak consumer sentiments and increasing competitive environment in Malaysia, as well as brand investments in new markets.
Shares in F&N closed 5 cents lower at $2.34 on Tuesday.
