Triple whammy knocks Q2 earnings of Yeo Hiap Seng

SINGAPORE - Food and beverage group Yeo Hiap Seng's second quarter net profit plunged to $6.2 million from $28.5 million previously.

Revenue for the three months to June 30 fell by 24 per cent to $111.7 million.

The sharp drop in profit was mainly contributed by a $3.7 million fall in profit in the food and beverage business, a $13.2 million decrease in profit from the property division and a $9.2 million drop in gain from disposal of available-for-sale financial assets.

Earnings per share shrank to 0.9 cent from 4.96 cents previously while net asset value per share slipped to 111.68 cents compared to 128.23 cents as at Dec 31.

On its prospects, Yeo Hiap Seng noted that the continued increase in raw material prices and energy costs, coupled with continued pressure on sales and selling prices due to intense competition will put pressure on the group's food and beverage earnings.