Heavy drinking Vietnamese help Asia Pacific Breweries post $25.3 million profit

It was Tiger time in Vietnam, where the locals guzzled 35% more beer over Tet than last year, pushing Tiger's profit for the quarter up 56%.

Driven by stronger sales volume, revenue increased 10% to S$639.2 million as compared to the same period last year.

"The robust first quarter operating performance is largely driven by Indochina which saw a 35% increase in volume due to strong festive sales in the run-up to TET (Lunar New Year). This resulted in PBIT jumping 69% for the region," explained Mr Roland Pirmez, Chief Executive Officer of APB.

"Other factors throughout our regional operations that contributed to the Group’s improved first quarter performance are price increases implemented late last year, higher volumes, an improved sales mix and lower prices for some packaging materials in the markets," he added.

In addition to Indochina, New Zealand and Malaysia also fared well with PBIT increasing 35% and 24% respectively.

New Zealand’s improved results was due mainly to lower packaging cost, higher margins from price increases made last year, favourable sales mix and translation gains of S$3 million as the New Zealand dollar appreciated against the Singapore dollar.

Malaysia's stronger performance meanwhile was a result of a 3% increase in volume and lower marketing expenditure.

PBIT for Singapore and Papua New Guinea showed similar growth of 11%.

The former incurred lower overheads and marketing expenditure due to timing of marketing activities while the latter enjoyed higher margins from price increases.

Similarly, enhanced performances were also seen in Mongolia and China where volumes improved 30% and 26% respectively. In addition, Mongolia, last year, included a hefty unrealised exchange loss from currency re-alignment of US dollar loans.

The rate of growth for the remaining nine months is expected to moderate, however, according to Asia Pacific Breweries.

This growth, coupled with the acquisition of the breweries in Indonesia and New Caledonia and the divestment of the loss-making Indian operations, is expected to result in a higher attributable profit (before exceptional items) compared to last year, the company added.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia