Heavy drinking Vietnamese help Asia Pacific Breweries post $25.3 million profit

It was Tiger time in Vietnam, where the locals guzzled 35% more beer over Tet than last year, pushing Tiger's profit for the quarter up 56%.

"The robust first quarter operating performance is largely driven by Indochina which saw a 35% increase in volume due to strong festive sales in the run-up to TET (Lunar New Year). This resulted in PBIT jumping 69% for the region," explained Mr Roland Pirmez, Chief Executive Officer of APB.

"Other factors throughout our regional operations that contributed to the Group’s improved first quarter performance are price increases implemented late last year, higher volumes, an improved sales mix and lower prices for some packaging materials in the markets," he added.

In addition to Indochina, New Zealand and Malaysia also fared well with PBIT increasing 35% and 24% respectively.

New Zealand’s improved results was due mainly to lower packaging cost, higher margins from price increases made last year, favourable sales mix and translation gains of S$3 million as the New Zealand dollar appreciated against the Singapore dollar.

Malaysia's stronger performance meanwhile was a result of a 3% increase in volume and lower marketing expenditure.

PBIT for Singapore and Papua New Guinea showed similar growth of 11%.

The former incurred lower overheads and marketing expenditure due to timing of marketing activities while the latter enjoyed higher margins from price increases.

Similarly, enhanced performances were also seen in Mongolia and China where volumes improved 30% and 26% respectively. In addition, Mongolia, last year, included a hefty unrealised exchange loss from currency re-alignment of US dollar loans.

The rate of growth for the remaining nine months is expected to moderate, however, according to Asia Pacific Breweries.

This growth, coupled with the acquisition of the breweries in Indonesia and New Caledonia and the divestment of the loss-making Indian operations, is expected to result in a higher attributable profit (before exceptional items) compared to last year, the company added.