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Yeo Hiap Seng Q1 profit rises 24.6%

FOOD and beverage (F&B) group Yeo Hiap Seng's net profit for the first quarter rose 24.6 per cent to S$9.15 million, compared to S$7.35 million in the year-ago period. Revenue for the quarter ended March 31, 2015, increased 8.9 per cent to S$121.49 million, compared to S$111.56 million in the corresponding period a year ago.

Earnings in the last quarter had gained mainly due to higher net profit of S$3.06 million generated from the F&B division and partially offset by an absence of S$1.98 million gains on disposal of available-for-sale financial assets.

Meanwhile, there were no property-development or selling activities for its property division in the current financial period.

In the next 12 months, the group expects the F&B margins to come under pressure mainly due to competitive selling prices in the markets, volatility in foreign-exchange rates and higher initial operating costs for new production lines. However, it expects softening raw-material prices to offset the drop in margins.

It remains optimistic that the F&B business will grow at a satisfactory level, and stated that the property development segment is dormant.

"Overall, the group's performance is expected to remain satisfactory," it said.

For the quarter under review, earnings per share was 1.59 cents, compared to 1.28 cents in the year-ago period. Meanwhile, net asset value per share was 118.56 cents, versus 109.15 cents in the corresponding period last year.

No dividend was declared for the quarter.

On Friday, Yeo Hiap Seng's counter closed trading up 1.475 per cent at S$1.72.