Fraser & Neave profit drops 45 per cent in second quarter on one-off charges

Fraser & Neave reported Friday that its second-quarter net profit dropped 45 per cent per cent from the same period a year ago, to $47.1 million as it incurred a one-time charge of $72 million related to the takeover offers made for its business.

This included the break up fee of $50 million that F&N had to pay Overseas Union Enterprise, after Thai billionaire Charoen Sirivadhanabhakdi's offer for the firm went unconditional.

F&N declared a capital distribution of nearly $4.73 billion, the bulk of which will go to the controlling shareholder.

F&N's revenue rose 17 per cent to $912 million in the three months ended March 31.

Properties earnings improved 21 per cent, underpinned by strong rental income and earnings from progressive recognition of pre-sold residential projects in Singapore.

The food and beverage business also posted strong earnings growth, with profit before interest and taxes increasing twofold as a result of improved consumer demand, strong trade and market execution and lower input costs.

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