Southeast Asian beverage group Fraser & Neave Ltd (F&N), based in Singapore said it is on track to post double-digit full year earnings growth despite the SARS outbreak, after a higher-than-expected 35 percent rise in first half profit, according to Reuters. "We are working extremely hard to make sure we can deliver what we have promised," Han Cheng Fong, managing director of F&N, said in an analysts' briefing. Han said the group had been affected by the Severe Acute Respiratory Syndrome (SARS) outbreak, but was trying to minimise the impact with cost cutting and other measures to meet its target. He said SARS had hit beer sales in Singapore, slowed its serviced residences business and residential property sales.

Net profit of F&N rose to S$138.9 million ($79.6 million) from S$103.2 million, boosted by the sale of a retail mall. Turnover rose 18.5 % to S$1.88 billion. The profit was higher than the estimate of three analysts who had forecast an average S$129 million profit.

The 120-year old group F&N brews the city state's top-selling "Tiger" brand beer via its 37.9 % stake in Asia-Pacific Breweries Ltd (APB). Dutch firm Heineken NV owns 42.5 % of APB, which has 14 breweries in eight countries. APB reported on Friday a 12.9 percent rise in first half net profit to S$57.5 million, compared with S$50.96 million over the same period a year earlier. APB, which had forecast double digit earnings growth for the full year, scaled down its forecast. The firm now said earnings growth would be at least flat if the SARS outbreak is contained. APB chief executive officer Koh Poh Tiong also said the firm was in "serious" talks with its Dutch partner to brew Heineken beers in China.

17 May, 2003