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F&N quarterly profit declines on property



 

 

 

But its revenue rises to RM900mil

 

PETALING JAYA: Fraser & Neave Holdings Bhd has recorded a net profit of RM34.7mil, or 9.8 sen per share, for its fourth quarter ended Sept 30, down 24% compared with RM45.6mil, or 12.8 sen per share, in the previous corresponding quarter on lower contribution from its property division.

 

Revenue, however, rose to RM899mil, up 12.5% from RM798.8mil previously, driven by higher sales volume from its core business divisions.

 

Its soft drinks revenue registered double-digit growth of 16% due to the earlier Hari Raya festival and promotion activities, the company said in a statement yesterday.

 

Its glass division, meanwhile, saw a revenue growth of 32%, largely due to its new plant in Thailand and higher selling prices of glass containers, while property revenue declined from RM33mil previously to RM1.3mil for the current quarter.

 

Last year’s property revenue included that from Fraser Business Park - Phase I (which was completed in September 2007) together with that of Phase II, which had just commenced.

 

During the quarter, the division terminated several block sales and reversed the related revenue after the buyers failed to meet their progress payment obligations, the company said.

 

 

For the full year (FY08), F&N made a net profit of RM166.8mil, an increase of 9% from FY07’s RM152.9mil.

 

Revenue stood at RM3.6bil compared with RM2.9bil in FY07.

 

A final dividend of 22.5 sen net is to be approved by shareholders. If approved, the total dividend for the year would be 40.08 sen net against 34.2 sen net paid last year.

 

Chief executive officer Tan Ang Meng said he expected the slowing of the Malaysian and Thailand economy to dampen consumption and intensify competition.

 

“While the prices of key raw materials are showing signs of a downward trend, the weaker ringgit exchange rate may offset these potential savings,” he said.

 

He added that demand for F&N products was expected to remain relatively stable, as they were “daily necessities.”

 

 

 


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