A LACK of contributions from the property division and the absence of a fair value gain from disposal of available-for-sale financial assets caused food and beverage (F&B) counter Yeo Hiap Seng to report a net profit of S$3.15 million for the three months ended Sept 30. This was 86 per cent lower than the S$22.3 million reported a year ago. Revenue dipped 11 per cent, from S$129.3 million to S$114.7 million.
For its core F&B business, revenue increased by 3 per cent to S$113.4 million, the company said. Net profit for the segment dipped slightly from S$3.16 million to S$3.1 million. This was mainly due to depreciation for a new production line and increased advertising and promotional expenses in Malaysia.
Looking ahead, the company said that the group's earnings for its F&B segment will come under pressure.
This was due to "continued increase in raw material prices and energy costs, coupled with continued pressure on sales and selling prices due to intense competition".
Yeo Hiap Seng's available-for-sale financial assets, mostly listed Singapore stocks, continued their slide in value this year. They were valued at S$250 million at the beginning of the year, and were valued at S$166.4 million at end-September.
Net asset value was $1.10 at end-September, down slightly from S$1.12 at end-June.
The company closed down two cents, or one per cent, to S$1.90, before results were announced.