E-Malt.com News article: 2207

Singapore: Asia-Pacific Breweries Limited, jointly owned by Heineken and Fraser & Neave Ltd (F&N), revealed on February 13 that its first quarter group revenue grew 33% over the same period last year to S$431.3 million, with growth across all markets, helped by an early Chinese New Year and Tet. Group profit before interest, taxation and exceptional items (PBIT) increased 52% to US$64.6 million while attributable net profit before exceptional items rose 43% to US$28.9 million.

Group operating expenses increased 27% due to higher volumes, impact of exchange and start-up costs of the Hatay brewery in North Vietnam. Share of joint venture and associated companies' profits rose 23%, primarily due to better performance from Malaysia. Profit attributable to outside shareholders increased 61% due to the strong performance from New Zealand and Vietnam.

PBIT in Singapore declined by 5% due to lower domestic sales, which were offset by higher exports. Meanwhile PBIT grew 69% in Malaysia as a result of higher sales and by 19% in Papua New Guinea thanks to a stronger currency. In New Zealand PBIT grew by 33% as a result of higher sales driven by December festive promotions and increases in on-premise consumption.

Indochina saw an earlier build-up for the Tet festive season and stronger demand, before the implementation of VAT in Vietnam in January 2004, boost December sales. In Cambodia, wedding promotions lifted Tiger and Anchor volumes. PBIT for the region improved 79% over last year.

Total China sales volume increased by 38% resulting in a reduction of losses by 14%. In Thailand although revenue grew 9%, PBIT declined 14% due to higher marketing and overhead costs.

Other investments increased $9 million due to the appreciation of the New Zealand dollar and the resultant impact on advances to distributors in New Zealand. Debtors and creditors increased due to higher volumes over the festive season and promotional activities.

“The fundamentals of the Group's business remain sound. The signs of economic recovery in Singapore and the region are encouraging at this point in time. With the local production of Heineken Lager in China and the recently announced acquisition of a 21% equity interest in Guangdong Brewery Holdings Limited, we remain committed to building a stronger platform for our business in that market. Barring an escalation of the bird flu epidemic and any unforeseen circumstances, the Directors expect attributable net profit before exceptional items for the year to be higher than last year,” the company said in a statement.


18 February, 2004