Asia Food & Properties posts Q1 net profit of S$45m

Asia Food & Properties has returned to the black in its fiscal first quarter.

The firm reported a profit of S$45 million, overturning a loss of S$2.7 million in the year-ago period.

Revenue rose 9.5 percent to S$195 million, mainly from its China property business and its food operations.

Asia Food & Properties said the outlook for the commercial and hotel sector of the China property business remains competitive, despite positive foreign investment interest and buoyant business activities.

Increasing corporate demand is expected to bolster the Grade A office market.

But it expects demand in the residential market to be affected by government policies on residential market in China.

As for its food business, the company said its priority is to focus on higher margin products and increasing its sales volume to stay competitive in China.

Meanwhile, its palm oil unit Golden Agri-Resources has posted sterling results for the first quarter.

Net profit doubled on-year in the first quarter to US$443 million, thanks to higher crude palm oil (CPO) production and a surge in CPO market prices of close to 100 percent.

Revenue was also a record US$747 million, up 172 percent on-year. – CNA/ms

Source : Channel NewsAsia – 12 May 2008