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Fraser and Neave Limited’s Latest Earnings: What Investors Should Know

On Tuesday, Fraser and Neave Limited (SGX: F99) reported its third-quarter earnings for the financial year ending 30 September 2017 (FY2017). The reporting period was from 1 April 2017 to 30 June 2017.

Fraser and Neave, or better known as F&N, organises its business segment into three main buckets: beverages, dairies, and printing & publishing. 

To learn more about the company, click here , here and here You can also catch up with the prior quarter’s earnings here .  

Financial Highlights

The following’s a quick take on the financial figures for the reporting quarter:

1. Revenue fell by 8.6% year-on-year to S$483 million.

2. Net profit attributable to shareholders rose almost 60% to S$60.7 million.

3. Diluted earnings per share (EPS) was 4.2 cents, up 61.5% from 2.6 cents in the same quarter a year ago.

4. Cash flow from operations was negative S$20.1 million while capital expenditure was S$12.5 million. F&N registered negative free cash flow of almost S$32.6 million.  

5. As of 30 June 2017, the group had over S$906.5 million in cash and equivalents and S$1.1 billion in debt. A year ago, the group had S$967 million in cash and equivalents and S$136.8 million in debt.

For the quarter, F&N recorded lower revenue but higher profits. That said, the food and beverage outfit had negative free cash flow and added a significant amount of debt on its balance sheet. F&N took on more borrowings to finance its acquisition in an additional stake in Vinamilk.

Operational Highlights

F&N’s Beverage segment recorded revenue of S$141.4 million for the third-quarter, a 17.1% decrease compared to the year before. The segment’s profit before interest and taxes (PBIT) also fell by 76.6% year on year to S$2.11 million.

For the same period, F&N’s Dairies’ segment saw its topline slip 3.3% year-on-year. The segment’s revenue came in at S$276.1 million. The segment’s PBIT did better, soaring 66.1% to S$83.1 million.

F&N’s Printing & Publishing segment experienced a 9.2% fall in sales, ending the quarter with S$65.5 million in revenue. The segment also recorded steeper loss of $2.7 million in PBIT.

Foolish Summary

At its closing price on Tuesday of S$2.34, F&N traded at with a trailing dividend yield of 1.9%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.