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F&N's Q1 profit drops 28.6% to S$25.53m

FRASER and Neave's (F&N) net profit (before exceptional items) for the first quarter ended Dec 31, 2015 dropped 28.6 per cent to S$25.53 million, as revenue slipped 11.1 per cent to S$488.73 million.

The decrease in revenue was due to lower contributions from Soft Drinks Malaysia and Dairies Malaysia.

Earnings per share (before exceptional items) for the quarter stood at 1.8 Singapore cents - lower than the 2.5 Singapore cents in the corresponding period a year ago.

No dividend was declared.

As for its 12-month outlook, F&N said that consumer sentiment in the food & beverage segment is expected to be affected by the economic climate and labour market. It added that the operating environment for the printing & publishing segment is likely to remain challenging too.

Still, F&N said: "With S$700 million of cash available for business acquisitions and no net debt, the group is well placed to actively pursue new business opportunities in 2016."