Aug 12, 2013

F&N 3Q13 Results (Business Units)

Snapshot of the performance of various Business Units as follows;

Overall Beverages revenue +11% compared to same period last year. Profit Before Interest and Taxes (PBIT) +44% due to higher sales volume and better product mix.

Soft drinks revenue +11% Y-o-Y  on higher sales volume.

F&N Sparkling, 100Plus, Seasons and Ice Mountain all had volume growth. F&NHB also began distributing Oishi Green Tea in Malaysia this June.

Breweries revenue +10% on strong volume growth.

Dairies revenue -5% yoy and overall PBIT +9% higher compared to same period last year, mainly contributed by performance of Dairies Thailand's favorable sales mix and cost management initiative.

Dairies Thailand revenue lower this quarter due to lower export sales.

Co-branding of Teapot brand with Tourism Authority of Thailand and branding of evaporated milk with food ambassador will further reinforce its market leadership.

Dairies Malaysia revenue declined due to price competition. Dairies Malaysia has rolled out targeted tactical, trade and marketing activities to boost consumer consumption.

Dairies Singapore had domestic sales growth but affected by lower export sales.

F&N Creameries revenue and volume both marginally lower.

Printing and Publishing
Overall revenue -6% despite strong export revenue for Education Publishing and higher print output. PBIT -78% lower.

Closure of loss making businesses produced savings which were used to invest and expand the Education Publishing business. Closed business interests were the Library Reference business in USA and domestic education publishing business in Malaysia.

Commercial Property
Overall revenue +20%, PBIT +46% over corresponding period last year.

Investment Property: Revenue and PBIT -6% and -13% compared to last year due to divestment of Frasers Property China. Otherwise, performance would have been +18% and 27% respectively.
Operation of investment properties are in Singapore and Vietnam.

Singapore: Rental income higher compared to last year.
Retail Malls: 99% average occupancy rate.
Industrial/Office: 98% (except Valley Point Office Tower 92% from 57%)
Vietnam office building average occupancy rate 100%

Hospitality: Revenue and PBIT +51% and +141% Y-o-Y, due to new properties in UK, Aus and SG. Daily rental rates and occupancy generally increased.
Share of results from Frasers Centrepoint/Commercial Trusts were +79% at S$14 mil, operating results of the two trusts were higher over same period last year.

Development Property
Revenue +8% to S$314 mil compared to same period last year, due to revenue recognition on completion of a development project in Australia, higher sales of completed projects in China and Thailand. PBIT +8% to $59 mil. There was also a provision (S$9 mil) set aside for foreseeable losses on a development site in Australia.

Singapore: Revenue -23%, PBIT +1%, due to lower marketing expenses.
Overseas: Revenue increased 8.3 times to S$100 mil due to completion of project in Australia and higher sales in China and Thailand. PBIT S$8 mil.

PBIT lower due to higher foreign exchange losses.

You may read the CIMB research report as well here;

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