SINGAPORE: Asia Pacific Breweries' H1 profits leap

Asia Pacific Breweries reports strong half-year

Asia Pacific Breweries has reported strong rises in beer sales and profits in the first half of its fiscal year, but warned that rising inflation could hit consumer demand.

A strong performance in Vietnam, together with the contribution of new business in Indonesia and New Caledonia, drove Asia Pacific Breweries to a 23% leap in beer sales for the six months to the end of March. CEO Roland Pirmez said that the brewer saw "strong demand for our brands in most of our markets".

For the half-year, group net profits rose by 36% to SGD183.6m, with profits before interest and tax up by 34% to SGD340.9m.

However, unfavourable exchange rates and rising inflation are reasons for caution in the second-half. "Rising inflation in our main markets may dampen consumer demand," said the Singapore-based brewer, which is a joint venture between Heineken and Fraser & Neave.

"Strengthening of the Singapore Dollar against regional currencies, particularly the Vietnamese Dong, will continue to adversely affect the reported financial results of the group," the Tiger beer brewer added.

Despite this, the brewer's board has approved a dividend increase of 57%, to SGD0.22 per share, to be paid on 20 June.

Among the financial higlights in the first-half was the group's China and Mongolia business, which swung to pre-tax profits of SGD0.5m from losses of SGD2.2m a year earlier.