SINGAPORE (Nov 9): Beverage giant Fraser and Neave has reported earnings of $ 122.2 million for FY ended Sept 30 2018. In the prior year, earnings of $1.28 billion was lifted by one-off fair-value gain recognition of its share of a joint venture business, Vinamilk, which amounted to $1.2 billion. For FY18, earnings before exceptional items was $121.7 million, up 26% y-o-y.

For FY2018, F&N’s generated revenue of over $1.9 billion, up 2% y-o-y. The company enjoyed strong dairy sales. It also enjoyed favourable foreign exchange gains. However, weaker sales of soft drinks negated the revenue growth.
Koh Poh Tiong, chairman of the F&N’s board executive committee, calls the FY18 results “creditable”.

“Increasing input costs, declining consumer confidence as well as evolving consumer preference and behaviour continued to impact the businesses this year,” he adds.

“Nevertheless, our strong brands and focus on efficiency and cost control enabled us to remain competitive through these challenging times. Together with the advantages of a regional footprint, scale and distribution capabilities, these factors will continue to provide F&N with the firm foundation to build on the success in the years ahead,” says Koh.

Besides the dairy and beverage business, F&N runs a publishing and printing division as well. For FY18, this business segment reported revenue of $281.1 million down $293 million from the previous year. F&N attributes the drop in revenue to absence of a press and books concession at Singapore’s Changi Airport. A non-performing unit in Australia has also been shut down, which led to overall drop in revenue.

The company plans to pay a final dividend of 3 cents per share, which will bring total payout for FY18 to 4.5 cents.

F&N shares ended Nov 9 unchanged at $1.78.