Company Updates

&N Q1 net profit tumbles 18% to $89m

The group's Q1 net profit attribute to shareholders was $88.98 million, down 18 per cent from the same period last year after including $29.2 million in fair value gain on investment properties and $7.7 million in exceptional gain (mainly from negative goodwill arising from the acquisition of an associate).

xcluding these items, net profit would have fallen by almost 50 per cent to $52.06 million. The group's share of losses of associated firms totalled $28 million for the period, against a share of profits of $2.4 million a year ago.

Group revenue also weakened by 6 per cent year-on-year to $1.24 billion in Q1.

However, performance within the segment varied. While the soft drinks, breweries and glass containers businesses did better, the dairies business was affected by losses from an associated company. PBIT from the printing and publishing arm weakened by 8 per cent to $14.1 million in Q1.

As of Dec 31, F&N had $1.69 billion of borrowings repayable within a year and it said it has secured financing of $1 billion. 'We are well able to service our debt,' it reassured.

My views: If F&N focuses on their drink businesses and didn't diversify so much, I would want to invest in this company.
I like companies that focus on their core businesses.

Asia Pac Breweries Q1 net up 13% to $48.3m

The increase was largely driven by a one-time gain of $3.5 million from selling a New Zealand unit, Liquorland Limited, as opposed to exceptional losses of $1.35 million a year ago.

Earnings per share after exceptionals rose to 18.7 cents from 16.5 cents. Excluding exceptionals, Q1 net profit remained relatively steady at $44.8 million, 1.9 per cent up year-on-year.

Group revenue rose 2.2 per cent from a year ago to $580.2 million, as APB increased beer prices in some markets and sale volumes went up. 'Amongst the best performing markets was Singapore,' said APB's CEO Roland Pirmez. He took on the role from Oct 1 last year after the former CEO of 15 years, Koh Poh Tiong, left to head F&N's food and beverage business.

Profit before interest and taxation (PBIT) for the Singapore market grew 63 per cent as sales volume rose and margins improved from price increases and lower overheads. APB's businesses in Malaysia and Papua New Guinea also enjoyed considerable PBIT increases.

Mr Pirmez expects the operating environment to remain challenging as the global financial crisis continues to unfold.

But he added: 'APB has a strong balance sheet and the group's business fundamentals remain sound . . . the group will keep reviewing investment plans in light of the current environment and invest selectively to support future growth and boost our competitiveness.'

APB shares ended trading yesterday at $10, up 10 cents.

My views: APB is worth investing in.

No distribution from Saizen Reit for Q2


Saizen Reit, listed on the Singapore Exchange in November 2007, invests in Japanese regional residential properties. The Reit reported that income attributable to its unitholders for the three months ended Dec 31, 2008 (Q2 2009) came to 214.7 million yen (S$3.5 million). In Q2 the previous year, Saizen Reit recorded income attributable to its unitholders of negative 565.2 million yen on the back of high IPO expenses. Due to an increase in the size of the Reit's property portfolio, gross revenue and net property income rose by 24.5 per cent and 24.7 per cent respectively in Q2 2009 compared to a year ago.


Source : Business Times
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