Operating profit surges at Asia Pacific Breweries

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.