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34% rise in APBE to S$246.1 million
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30% gain in PBIT to S$443.1 million
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19% increase in ANP to S$217.6 million
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16% growth in revenue to S$1.77 billion
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36% increase in interim dividend to 30 cents per share
Asia Pacific Breweries Ltd (APB) today announced that
Group profit before interest, taxation and exceptional
items (PBIT) for the six months ended 31 March 2012 rose
S$102.2 million or 30% to S$443.1 million. Group
attributable net profit before exceptional items (APBE)
increased S$62.5 million or 34% to S$246.1 million.
Excluding translation differences, gestation loss1 and
the impact of an acquisition2 and a
disposal3, organic PBIT and APBE grew 28% and
29% respectively.
Attributable net profit after exceptional (ANP) items
gained S$34.0 million or 19% to S$217.6 million. This
includes an exceptional loss of S$28.5 million, mainly
attributable to the provision of S$29.8 million for
impairment of Jiangsu Dafuhao Breweries Co, Ltd (DFH) by
its 50%-owned Heineken-APB (China) Pte Ltd (HAPBC).
Overall, Group revenue rose 16% to S$1.77 billion.
Earnings per share before exceptional items rose from
71.1 cents to 95.3 cents while Group net asset value per
share was S$4.88.
The Board has approved an interim dividend of 30 cents
per share (36% higher than the 22 cents per share last
year), tax exempt (one-tier), to be paid on 18 June 2012.
Mr Roland Pirmez, Chief Executive Officer of APB said,
"The 34% increase in APBE is a result of our
positive performance in Indonesia, Vietnam and Papua New
Guinea while beer price increases and strong beer demand
in several markets drove the 16% revenue
gain."
Thailand and Indochina (i.e. Vietnam, Cambodia and Laos)
continued to be the Group's largest PBIT contributor at
44.6%. Versus the first six months of last year, PBIT for
the region rose 18% on the back of 12% volume growth and
improved margins due to price increases in Vietnam, and a
favourable sales mix in Cambodia. Excluding translation
losses, arising mainly from the 7.8% weakening of the
Vietnam Dong, PBIT grew organically by 27%.
South & South East Asia (i.e. Singapore, Malaysia,
Indonesia, Sri Lanka and Export Markets) reported a PBIT
increase of 22%. This is the result of a 9% volume growth
and improved margins from price increases. The revenue
increase in the region was mainly driven by volume gains
in Indonesia, Export Markets and Sri Lanka. The region
contributed 28.5% of Group PBIT.
PBIT from Oceania (i.e. New Zealand, Papua New Guinea,
New Caledonia and Solomon Islands) accounted for 27.6% of
Group PBIT. The region saw PBIT grow 53% on the back of a
4% volume increase, improved margins in Papua New Guinea,
a favourable translation gain of S$13.8 million from a
20% appreciation in the Kina as well as contributions
from the newly acquired brewery in Solomon Islands. On a
comparable basis, excluding the results from Solomon
Islands and translation gain, PBIT grew organically by
31%.
North Asia (i.e. China and Mongolia) reported a loss of
S$1.7 million at PBIT level. China recorded
improved margins in line with our international premium
brand strategy. While volume in Mongolia further
improved, the performance in the market was impacted by
currency realignment of US Dollar loans. Excluding
this currency impact, North Asia would have recorded a
S$1.0 million loss versus a loss of S$2.1 million last
year.
Corporate Office
Corporate office expenses were lower than same period
last year mainly due to higher royalty income, lower
provision for employee share-based expenses and lower
business development and marketing expenses.
Exceptional Items
The S$28.5 million exceptional loss was mainly due to the
share of provision for impairment of the carrying value
of DFH of S$29.8 million as announced on 30 March 2012.
Outlook
The Singapore Dollar is expected to appreciate against
regional currencies. Any strengthening of the Singapore
Dollar, particularly against the Vietnam Dong, will
continue to adversely affect the financial results of the
Group.
The Company continues to review its options in relation
to HAPBC's 49% stake in DFH and 100% stake in Shanghai
Asia Pacific Brewery Co. Ltd. Further announcements will
be made as appropriate to keep shareholders informed of
material developments.
Continuing economic uncertainties may dampen consumer
demand in the region.
1 Gestation loss refers to the first three
years' results from the greenfield brewery in Guangzhou
(Guangdong, China).
2 On 6 June 2011, the Group acquired 97.7%
of the share capital of Solomon Breweries Limited
incorporated in the Solomon Islands.
3 On 5 May 2011, HAPBC, a joint venture
company of APB, divested its stake in Kingway Brewery
Holdings Limited.
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