Operating profit surges at Asia Pacific Breweries14 August 2012
Asia Pacific Breweries has recorded a 27.7% increase in operating profit to SGD167.5 million as double-digit volume gains in Vietnam and Thailand fuelled growth.
The Tiger beer brewer's sales were up 9.7% to SGD781.3 million but net profit slipped 5.6% to SGD123 million.
The joint venture between Heineken and Fraser & Neave said volumes in south east and south Asia were up 5%. This was led by double-digit volume growth in Indonesia and export markets including Malaysia, Sri Lanka and Indonesia.
The firm also benefited from strong performance in Indochina as volume growth of 15%, healthier margins from price rises in Vietnam and an enhanced product mix in Cambodia contributed to a 15% increase in earnings.
Oceania profits were up 20% led by stronger margins in Papua New Guinea and a newly acquired brewery in the Solomon Islands. However, "challenging market conditions" in New Zealand saw volumes fall 12%.
Asia pacific Breweries said net profit for the first three-quarters of the year was up 11.1% to SGD419.6m.
Asia Pacific Breweries' positive latest results will attract the attention of analysts as the battle for Fraser & Neave's stake in the joint venture between Heineken and ThaiBev affiliated firm Kindest Place Group intensifies.
Last week, Ingredientsnetwork reported that Kindest Place Group had offered Fraser & Neave a 10% premium on Heineken’s offer of $50 a share. Fraser & Neave’s board had previously confirmed their support for Heineken’s $4.1 billion offer.
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