Fraser and Neave : reports first-half FY2021 results (Financial Statement)

FRASER AND NEAVE, LIMITED

(Company Registration No. 189800001R)

(Incorporated in the Republic of Singapore)

RESULTS FOR THE HALF YEAR ENDED 31 MARCH 2021

Financial Statements and Dividend Announcement

The Directors are pleased to make the following announcement of the unaudited results for the half year ended 31 March 2021.

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENT OF HALF AND FULL YEAR RESULTS

1(a) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the Group, together with a comparative statement for the corresponding period of the immediately preceding financial year.

1(a)(i) GROUP PROFIT STATEMENT
			6 Months			6 Months
			to 31/3/2021			to 31/3/2020		Change
			$'000			$'000	%
Revenue	988,560	969,443	2.0
Cost of sales	(669,146)		(650,351)	2.9
Gross profit	319,414	319,092	0.1
Other income	9,578	5,160	85.6
Operating expenses
-	Distribution	(84,414)		(85,608)	(1.4)
-	Marketing	(78,571)		(87,363)	(10.1)
-	Administration	(63,023)		(66,072)	(4.6)
			(226,008)		(239,043)	(5.5)
Trading profit	102,984	85,209	20.9
Share of results of joint venture companies	361	2,997	(88.0)
Share of results of associated companies	49,939		53,680	(7.0)
Profit before interest and taxation ("PBIT")	153,284	141,886	8.0
Finance income	900		2,088	(56.9)
Finance cost	(12,285)		(12,542)	(2.0)
Net finance cost	(11,385)		(10,454)	8.9
Profit before taxation and exceptional items	141,899	131,432	8.0
Exceptional items	(1,271)		(199)		NM
Profit before taxation	140,628	131,233	7.2
Taxation	(22,892)		(25,666)	(10.8)
Profit after taxation	117,736	105,567	11.5
Attributable profit to:
Shareholders of the Company	83,446	71,847	16.1
Exceptional items	(1,035)		(199)		NM
			82,411	71,648	15.0
Non-controlling interests	35,325		33,919	4.1
			117,736		105,567	11.5

NM - Not meaningful

* Reclassification has been made to the comparative period to conform with current period's presentation.

			Page 2 of 17
1(a)(ii) BREAKDOWN AND EXPLANATORY NOTES TO GROUP PROFIT STATEMENT
	6 Months	6 Months
	to 31/3/2021	to 31/3/2020	Change
	$'000	$'000	%
Operating expenses
Included in operating expenses are:
Depreciation & amortisation	(45,734)		(44,135)	3.6
Write back of/(Allowance for) bad and doubtful debts	124		(147)	NM
Allowance for inventory obsolescence	(3,061)		(4,158)	(26.4)
Employee share-based expense	(2,077)		(2,696)	(23.0)
Other income
(Loss)/Gain on disposal of fixed assets	(8)		70	NM
Foreign exchange gain	229		566	(59.5)
Taxation
Over/(Under) provision of prior year taxation	1,005		(32)	NM
Exceptional items
Provision for restructuring and re-organisation cost
of operations	(1,271)		(199)	NM

PBIT as a percentage of revenue	15.5%	14.6%

													Page 3 of 17
1(a)(iii) ADDITIONAL INFORMATION
			Revenue							PBIT
			6 Months	6 Months			6 Months		6 Months
			to 31/3/2021	to 31/3/2020			to 31/3/2021		to 31/3/2020
			$'000	$'000			$'000		$'000
Group revenue and profit analysis
By Business Activity
Beverages	250,256			233,812			21,828	7,596
Dairies	617,883			609,230			128,173	139,229
Printing & publishing	115,417			126,192			(2,760)	(11,018)
Others	5,004			209			6,043	6,079
	988,560			969,443			153,284	141,886
By Territory
Singapore	216,059			220,523			9,936	541
Malaysia	357,607			347,848			21,628	23,081
Thailand	351,336			350,576			71,173	73,022
Vietnam	48			56			48,556	51,251
Others	63,510			50,440			1,991	(6,009)
	988,560			969,443			153,284	141,886
			Attributable profit to
			shareholders of the Company
			6 Months	6 Months
			to 31/3/2021	to 31/3/2020
			$'000	$'000
By Business Activity
Beverages	9,998			172
Dairies	86,270			91,571
Printing & publishing	(3,428)			(11,478)
Others	(9,394)			(8,418)
	83,446			71,847
Exceptional items		(1,035)			(199)
	82,411			71,648

* Reclassification has been made to the comparative period to conform with current period's presentation.

			Page 4 of 17
1(a)(iii) STATEMENT OF COMPREHENSIVE INCOME
		Group
	6 Months		6 Months
	to 31/3/2021		to 31/3/2020
	$'000		$'000
Profit after taxation	117,736	105,567
Other comprehensive income:
Items that may be reclassified subsequently to profit statement
Share of other comprehensive income of associated and joint venture companies	(917)		4
Fair value changes on derivative financial instruments	5,935		(6,065)
Currency translation differences	(56,426)		59,534
	(51,408)		53,473
Items that will not be reclassified to profit statement
Fair value changes on equity investments measured at fair value through other
comprehensive income	(108)		(1,328)
	(108)		(1,328)
Other comprehensive income for the period, net of taxation	(51,516)	52,145
Total comprehensive income for the period	66,220	157,712
Total comprehensive income attributable to:
Shareholders of the Company	37,363	123,591
Non-controlling interests	28,857	34,121
	66,220	157,712

Page 5 of 17

1(b)(i) A statement of financial position (for the issuer and Group), together with a comparative statement as at the end of the immediately preceding financial year.

BALANCE SHEETS
			Group		Company
		As at		As at		As at	As at
		31/3/2021	30/9/2020		31/3/2021			30/9/2020
		$'000		$'000		$'000	$'000
SHARE CAPITAL AND RESERVES
Share capital	858,830	855,870		858,830			855,870
Reserves	2,096,723		2,112,668			739,854			771,355
		2,955,553	2,968,538		1,598,684			1,627,225
NON-CONTROLLING INTERESTS	438,415		427,115			-			-
		3,393,968	3,395,653		1,598,684			1,627,225
Represented by:
NON-CURRENT ASSETS
Fixed assets	766,992	771,571		4,285			5,288
Investment properties	16,820	17,075		-			-
Properties held for development	17,850	18,114		-			-
Subsidiary companies	-	-		2,172,879			2,172,844
Joint venture companies	166,204	166,605		38,965			38,965
Associated companies	2,657,215	2,668,602		-			-
Intangible assets	144,199	133,695		827			652
Brands	27,263	27,354		212			212
Other investments	6,039	6,147		184,596			206,298
Other receivables	1,331	2,272		138			249
Deferred tax assets	5,038		4,516			-			-
		3,808,951	3,815,951		2,401,902			2,424,508
CURRENT ASSETS
Inventories	260,896		296,724			-			-
Trade receivables	315,204		271,823			-			-
Other receivables	47,554		94,899			1,882			4,813
Related parties	8,803		8,664			612			735
Subsidiary companies	-		-			72,048			49,862
Joint venture companies	1,214		1,179			-			-
Associated companies	50		7			-			4
Cash and bank deposits	354,350		285,479			10,014			8,622
		988,071		958,775			84,556			64,036
Deduct: CURRENT LIABILITIES
Trade payables	172,838		161,122			-			-
Other payables	219,725		211,759			11,798			13,850
Related parties	6,479		4,891			163			220
Subsidiary companies	-		-			25,884			5,174
Associated companies	209		398			-			-
Lease liabilities	12,961		14,268			2,232			2,353
Borrowings	203,528		42,701			-			-
Provision for taxation	51,513		49,639			5,011			4,296
		667,253		484,778			45,088			25,893
NET CURRENT ASSETS	320,818	473,997		39,468			38,143
Deduct: NON-CURRENT LIABILITIES
Other payables	24,883		30,262			-			-
Subsidiary companies	-		-			841,322			833,019
Lease liabilities	28,630		25,168			1,337			2,380
Borrowings	636,057		795,888			-			-
Provision for employee benefits	18,129		18,414			-			-
Deferred tax liabilities	28,102		24,563			27			27
		735,801	894,295		842,686			835,426
		3,393,968	3,395,653		1,598,684			1,627,225