Fraser & Neave's beer still bubbling: DBS

Earnings from breweries rose by a record 34% to S$112m.

According to DBS, 3Q12 core net profit increased by a meager 2% y-o-y to S$136m, while revenue grew by 4% to S$1.43bn.

Here's more from DBS:

Results were short of our expectations arising from slower revenue recognition from property  development as well as one-off rationalisation costs incurred post termination of Coca-Cola’s bottling agreement.

Beer still bubbling but property impacted by FRS115. Breweries continued to record strong growth with EBIT rising 34% y-o-y to S$112m. As a result of strong breweries contribution, coupled with a weaker contribution from property development, F&B accounted for 53% of group’s EBIT, up from 50% in 3Q11.

Notwithstanding a weaker contribution from its property development division, sales continued to be strong, with 2,297 residential units sold in Singapore YTD. In Australia, the group has sold about 476 units. In total, the group has S$3.2bn in unrecognized revenue from pre-sold projects which will be progressively booked over the next few years.