Asia Pacific Breweries profit up 30% to S$ 341.7mn

Group Revenue advanced 18% to almost S$3bn due to robust sales in markets such as Vietnam, Papua New Guinea and Sri Lanka.

On Thursday, Asia Pacific Breweries Ltd (APB) announced its financial results for the full year ended 30 September 2011. Group profit before interest, taxation and exceptional items (PBIT) rose S$113.8 million or 23% to S$613.9 million. Attributable net profit before exceptional items (APBE) increased S$42.6 million or 16% to S$303.6 million. Excluding translation differences, gestation loss and the impact of acquisitions and disposals, organic PBIT and APBE grew 25% and 16% respectively, according to an APB report.

An exceptional gain of S$36.8 million was recorded from the divestment of interests in Kingway Brewery Holdings Ltd3 (KBH). This resulted in attributable net profit after exceptional items (ANP) rising by S$78.6 million or 30% to S$341.7 million. 

Group revenue for the year gained 18% to almost S$3 billion. Earnings per share before exceptional items rose 16.5 cents to S$1.176. Compared to the previous financial year, net asset value per share gained 58 cents to S$4.96 while net tangible assets (NTA) per share gained S$0.57 to S$2.39.

The Directors have proposed a final dividend of 63 cents per share and a special dividend of 15.5 cents per share. Together with the interim dividend of 22 cents per share, total net dividend for the year is S$1.005 per share. The final and special dividends, if approved by shareholders, will be paid on 13 February 2012.

Mr Roland Pirmez, Chief Executive Officer of APB, said," Our double-digit revenue growth was mainly due to robust sales in markets such as Vietnam, Papua New Guinea and Sri Lanka. Sales volumes from Indonesia, New Caledonia and the newly acquired brewery in Solomon Islands also contributed to the improved revenue.”

“ANP grew 30%. The bottom line has been further lifted by an exceptional gain from the divestment of interest in KBH by our joint venture company,” he continued.

Indochina (Cambodia, Laos and Vietnam) and Thailand recorded PBIT and volume gains of 17%. Vietnam led the region with a double-digit volume growth although sales also improved in all the other countries. The Indochina region is the Group’s largest PBIT contributor at 47%. 

South and South East Asia (Singapore, Indonesia, Malaysia, Sri Lanka and export markets) recorded PBIT and volume improvements of 30% and 20% respectively. Indonesia has emerged to become a new key contributor to the profitability of this region while PBIT in Malaysia rose 18% as compared to the previous year. While Singapore reported stable earnings, Sri Lanka turned in a modest maiden profit during the year. Excluding the results from Indonesia from October 2010 to January 2011 for a more comparable basis (as Indonesia was only acquired on 10 February 2010), PBIT for the region grew 6%. This region contributes 31% of Group PBIT and is the second largest PBIT contributor for the Group.

Oceania (New Zealand, Papua New Guinea, New Caledonia and Solomon Islands) reported a PBIT increase of 40% that grew on the back of an 11% volume increase. The robust performance was driven mainly by strong consumer demand in Papua New Guinea, improved margins from New Zealand as well as contributions from New Caledonia and Solomon Islands. Excluding the results from New Caledonia (from October 2010 to January 2011) and Solomon Islands (from June 11 to September 11) for a more comparable basis as New Caledonia was only acquired on 10 February 2010 and Solomon Islands on 6 June 2011, PBIT grew 33%. This region accounted for 27% of Group PBIT. 

North Asia (China and Mongolia) reported a PBIT of S$2.1 million. Mongolia continued to report volume growth while the business model in China has been restructured to focus on the international premium segment.