F&N posts 18% drop in Q1 net profit to S$89m

Mainboard-listed conglomerate Fraser & Neave (F&N) has reported an 18 per cent drop in its first-quarter net profit to S$89 million.

Revenue fell 6 per cent in the three months ending December to S$1.2 billion.

This was due to lower property sales in its overseas projects and a drop in revenue from its dairies segment, as consumer sentiment was hit by the melamine scare last year.

But F&N’s its soft drinks segment saw increased revenue and volume, thanks to strong sales during the year-end festivities.

Its investment property segment also enjoyed strong occupancy rates and higher rentals.

Looking ahead, F&N said its diversified business operations will help it to better withstand the difficult economic climate.

The firm added that its operating profit will be underpinned by its strong positions in the food and beverage and investment property businesses.

Its property development division will also continue to recognise profits from properties that have been sold.

Source : Channel NewsAsia – 13 Feb 2009

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