Fraser and Neave profits up to $267m on F&B and properties

Fraser and Neave Ltd. reported Thursday its profits doubled to $267 million for the first quarter ended 31 December 2009.

This profit before interest, taxation, revaluation adjustment and exceptional items correspond to a 53% increase for this period.

Revenue was pegged at $1,461 million for the period, an increase of 17% from the same period last year.

Growth was broad-based, with the key businesses of Food & Beverage (Soft Drinks, Dairies and Breweries) and Properties registering high revenue.

Riding on its geographical reach and brand portfolio, F&B maintained its growth momentum during the quarter, posting a 55% growth in PBIT, to $123 million.

Properties, buoyed by pre-sold residential developments, also benefitted from higher rental and occupancy rates.

Properties' profit also surged 73% to $130 million.

The group's earnings per share for the quarter nearly doubled to 9.7 cents, and net asset value per share improved to $4.07.

It 40%-owned joint venture, Asia Pacific Breweries (APB), entered into agreements to acquire Bintang brand and a 68.5% interest in PT Multi Bintang Indonesia. 87.3% interest in Grande Brasserie de Novelle Caledonie SA, and the sale of its Indian operations to Heineken.

The acquisitions of Indonesia's number one beer brand, and controlling interests in the market leaders in Indonesia and New Caledonia, fit APB's expansion plan in the Asia Pacific.

Upon completion of the transactions, the group's regional brewing presence will be enlarged to a network of 37 breweries in 14 countries.

Two recently completed malls, Northpoint Extension and Yew Tee Point, were also sold to its 52%-owned retail real estate investment trust, Frasers Centerpoint Trust, for a total cash consideration of $290 million.

To part-finance the acquisitions, FCT placed 137 million new units at an issue price of $1.33 per unit.