Fraser & Neave Ltd. (F&N) reported higher-than-expected 1999 net profit recently, boosted by strong contributions from property while its beer operations disappointed.
The diversified food and bevera…
Fraser & Neave Ltd. (F&N) reported higher-than-expected 1999 net profit recently, boosted by strong contributions from property while its beer operations disappointed. The diversified food and beverage group reported a 20% rise in net profit to S$ 48.05 million against analysts“ consensus forecast of S$ 29.5 million. The profit came mainly from listed subsidiary Centrepoint Properties, where net profit jumped 71.9% to S$ 73.88 million. However, the group“s beer operations under Asia Pacific Breweries disappointed with a 37.2% dive in net profit to S$ 39.98 million. One analyst said property was the star contributor, pulling up the group“s overall profit, but the beer operations, especially in China, remained weak. The group“s soft drinks operations in Malaysia also continued to incur losses, though F&N said it expected these to be substantially reduced in the coming year. F&N also announced a new strategic direction and vision for the group following a review of its operations. It said the vision would be supported by three areas, namely food and beverages, properties and new ventures. “It will restore profitability, ensure a more balanced portfolio of businesses and provide a platform for sustained growth,” it said in a statement accompanying the 1999 results. F&N said its medium term targets included restoring profit to above pre-Asian crisis levels, where it pulled in annual profit in excess of S$ 100 million, and a return on equity of more than 10%. It said it expected substantial improvement in results for the current year.