F&N: double-digit rise in 1Q fiscal 2006 revenue

Malaysia“s Fraser & Neave Holdings Bhd (F&N) registered double-digit growth of net profit and revenue in the 1Q OF fiscal 2006 thanks to generally higher selling prices and good festive sales.
For t…

Malaysia“s Fraser & Neave Holdings Bhd (F&N) registered double-digit growth of net profit and revenue in the 1Q OF fiscal 2006 thanks to generally higher selling prices and good festive sales. For the 1Q ended 31 December 2005, F&N Holdings increased its net profit by 11% to MYR 38.83 million compared to MYR 35.09 million in the year-ago quarter. Revenue was also up by 11% at MYR 532.91 million compared to MYR 478.24 million previously. Glass containers revenue was down by 8.5% to MYR 72.01 million due to disruptions caused by the conversion to natural gas and closure of an old furnace in China. Soft drinks remained the group“s strongest contributor. In its filing to Bursa Malaysia, F&N Holdings said its soft drinks revenue grew 18% to MYR 305.91 million while dairy products grew 2% to MYR 135.57 million. Revenue from property development activities contributed MYR 19 million for the quarter. The group said its operating profit for the quarter was 17% higher than the same quarter of 2005. “Margins were generally maintained in the soft drinks and dairy divisions as measures implemented in the previous quarters by reducing costs and increasing selling prices take effect”, F&N Holdings said. It said that general inflationary pressures in the country may have diminished consumer sentiment. But nevertheless, measures are in place to promote and stimulate consumption in order to raise volume. “Barring any unforeseen circumstances, the group remains optimistic that its performance will continue to be satisfactory,” it added.