F & N

FRASER & NEAVE NET PROFIT FOR 2QE MAR 2009 UP 11.2%

FRASER & NEAVE HOLDINGS recorded Net Profit of RM53.2m in 2QE Mar 31, 2009 - up 11.2% from RM47.9m a year ago. The Company in an EXCHANGE filing on May 4, 2009 said that Revenue rose marginally to RM913.8m from RM907.6m. EPS was 15 sen compared with 13.4 sen previously.

DIVIDEND DECLARED
The Company declared Gross Dividend of 17 sen (Net 12.75 sen). FRASER & NEAVE HOLDINGS plans to keep its Dividend Payout Ratio at least at 50% despite lower earnings for FYE Sep 2009.

LOWER COSTS
F&N said the Group benefited from lower input costs. Group Operating Profit Before Unusual Items rose 26% from a year ago. ".... After accounting for the one-time charge of RM10m due to the closure of the glass furnace in Petaling Jaya, operating profit still registered an improvement of 12% over last year ...." the Company said.

DAIRIES/PROPERTIES DIVISIONS
F&N said the Operating Profit of the Dairies Division more than doubled with the return to a more normalized profit margin after the surge in input costs in 2008.

However, the Property Division recorded lower profitability due to the cancellation of sales as reported in the fourth quarter of 2008.

1HE MAR 2009 PERFORMANCE
F&N said for the first half, Net Profit rose 12.7% to RM104.2m versus RM92.4m a year ago while Revenue rose 1.3% to RM1.83 bil from RM1.81 bil.

F&N CEO - TAN ANG MENG said the higher Operating Profit of RM158.5m versus RM141m a year ago was due to higher soft drinks and glass revenue which were partially offset by lower exports of dairy products.

SECOND HALF SENTIMENT TO REMAIN WEAK
For the second half, he said the lower commodity prices and Government stimulus packages to boost spending as positive factors. However, he expected consumer spending and sentiment to remain weak for the remaining months of its financial year as economic conditions deteriorate. " .... However, sales revenue of the group is expected to be stable as F&N products are daily necessities and priced at affordable levels ...." he said.

TAN AH MENG also said May 5, 2009 that he expected the Company to post continued strong growth in Revenue and Profitability for the eighth consecutive fiscal year in FYE Sep 30, 2009.

LOSS OF COCA COLA FRANCHISE IMPACT
However, he did expect revenue and profit to dip next year after the termination of the Coca-Cola contracts. To offset the decline, the Company plans to start 50 new ready-to-drink products from Feb 2010.

He also said the new plant in Roajana, Thailand was in the advanced stage of construction and would be operational by the middle of 2009.