BEVERAGE and publishing company Fraser and Neave (F&N) on Monday posted a 16.1 per cent rise in net profit to S$83.4 million for the half-year ended March 31, 2021.

Revenue increased 2 per cent to S$988.6 million. This was due to higher volumes in the beverages - comprising soft drinks and beer - and dairies segments in the food and beverage division, which recorded a 3 per cent rise in revenue to S$868.1 million.

Revenue from the sale of beer nearly doubled, while improvement in soft drink sales was driven by higher sales from the vending business and functional products. Dairies revenue inched up 1 per cent due to higher canned milk sales and strong export volumes to Middle East and Africa.

However, pandemic disruptions caused publishing and printing revenue to slide 8.5 per cent to S$115.4 million. While education publishing has remained resilient, the cancellation and deferment of print orders, closure of borders and dampened consumer sentiment have adversely impacted sales, the group said.

Other income climbed 85.6 per cent to S$9.6 million. Marketing expenses fell 10.1 per cent to S$78.6 million.

F&N has entered the halal food business with the acquisition of the Sri Nona Group of companies for up to RM60 million, or S$19 million. Sri Nona, based in Malaysia, manufactures, distributes and sells rice cakes (of which it has a flagship product), condiments, beverages, desserts, and jams and spreads.

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The group said it remains cautious in the near term, given the challenges of rising raw material prices and higher shipping charges, in addition to the challenging market conditions posed by pandemic.

Its long-term growth plans include adapting its delivery channels and product portfolio to evolving consumer requirements.

Earnings per share was 5.7 Singapore cents, higher than 4.9 cents the year before.

An interim dividend of 1.5 Singapore cents per share was declared, unchanged from the interim dividend declared the year before. The dividend is expected to be paid on June 17, 2021.

The counter closed at S$1.45 on Monday, up S$0.01 or 0.69 per cent.