Fraser and Neave (F&N) has released its Q1 2020 financial results, recording a profit after taxation growth of four per cent to $58.3 million.
Results for its first fiscal quarter ending 31 December 2019 saw its publishing and printing division boost revenue.
The publishing and printing division recorded revenue growth in Q1 of three per cent over the corresponding period of last year, to $72.6 million.
The company said its growth was due to contribution from Print Lab and Hallmark Distribution sales, which offset shortfall in revenue from education publishing, book distribution and print in China.
However, the publishing and printing division’s profit before interest and taxation for the quarter declined from $0.4 million in the corresponding period of last year to a loss of $0.3 million, due largely to lower education royalty income and textbook sales in Singapore, cushioned by improved print performance.
Overall, the group posted quarterly revenue of $505.2 million, an increase of nine per cent over the corresponding period of previous year.
Profit before interest and taxation grew seven per cent, to $76.3 million from $71.0 million.
Profit after taxation increased four per cent to $58.3 million, from $55.9 million previously.
According to the company, higher soft drinks and dairy sales contributed to its food and beverage division’s top line of $432.5 million, representing a 10 per cent growth from $393.6 million in the corresponding period of last year.
Beverages and Dairies Thailand’s performance also boosted its revenue.
Beverages earnings more than doubled in the first quarter, to $6.3 million from $2.8 million in the corresponding period of last year.
The strong growth was attributed to higher sales and lower marketing spend, despite higher logistics and operating costs associated with the operations of the greenfield brewery in Myanmar.
However, its Q1 profit before interest and taxation was partly weighed down by dairies.
“Despite Thailand recording a 12-per-cent profit growth, higher commodity and manufacturing costs have impacted Dairies earnings in Malaysia and Singapore,” the company said.
“Consequently, dairies for Q1 2020 profit before interest and taxation fell three per cent to $67.0 million, from $69.0 million in the corresponding period of last year.”