Yeo Hiap Seng Q3 net profit jumps to S$2.76m on absence of fair-value loss

MAINBOARD-LISTED drinks maker Yeo Hiap Seng saw a surge in third-quarter earnings on the back of narrower losses at associates and joint ventures, as well as the absence of fair-value losses on equity investments recognised in the year-ago period.

Net profit swelled from S$95,000 to S$2.76 million for the three months to Sept 30, according to results released on Friday, as revenue rose by 9.6 per cent to S$93.8 million on higher sales in Singapore, Cambodia, China and Europe.

Earnings per share stood at 0.48 Singapore cent, against 0.02 Singapore cent before.

For the nine months, net profit jumped by 70.2 per cent, from S$10.2 million to S$17.4 million, while revenue grew by 4 per cent to S$280.1 million.

Yeo Hiap Seng said in its financial statements that it expects food and beverage margins to still face pressure in the year ahead, on weak consumption outlook and competitive selling prices in key markets, as well as fluctuations in raw material prices and regional currencies.

The company added: "To continue to invest in our brand and protect our market share, we have increased advertising and promotion expenses during the festive seasons in our key markets."

No dividend was recommended for the quarter, unchanged from the year before.

Yeo Hiap Seng shares closed flat at S$0.90, before the results were announced.