APB: Investor Relations: Financial Results: 8 June 2001

8 June 2001

Results For The Half Year Ended 31 March 2001
Financial Statement And Dividend Announcement

The Directors are pleased to make the following announcement of the unaudited results for the half year ended 31 March 2001:-

Group

Company

-- Half year to --

31/3/2001

31/3/2000

Change

31/3/2001

31/3/2000

Change

(restated)#

$'000

PROFIT STATEMENT

Turnover

   Continuing operations...
   Discontinued operations
        - wine & liquor........

528,021

-

498,767

177,353

5.9

N/M

-

-

528,021

676,120

(21.9)

Investment income..........

367

1,022

(64.1)

13,855

42,590

(67.5)

Other income including interest income...............

7,998

5,028

59.1

10,924

12,002

(9.0)

=====

Operating profit

   Continuing operations...
   Discontinued operations
        - wine & liquor........

88,551

-

81,139

12,238

9.1

N/M

11,685

-

37,223

-

(68.6)

-

Operating profit before interest, depreciation and amortisation...........

88,551

93,377

(5.2)

11,685

37,223

(68.6)

Income derived from joint venture companies..........

9,191

11,586

(20.7)

Depreciation and amortisation...................

(21,791)

(27,688)

(21.3)

(439)

(243)

80.7

---------

Operating profit before interest, taxation and exceptional item

   Continuing operations...
   Discontinued operations
        - wine & liquor........

75,951

-

68,015

9,260

11.7

N/M

11,246

-

36,980

-

(69.6)

-

75,951

77,275

(1.7)

11,246

36,980

(69.6)

Interest income..............

6,821

3,852

77.1

174

2,649

(93.4)

Interest on borrowings.....

(2,942)

(4,857)

(39.4)

(2,175)

(1,650)

31.8

---------

Operating profit before taxation and exceptional item

   Continuing operations...
   Discontinued operations
        - wine & liquor........

79,830

-

67,010

9,260

19.1

N/M

9,245

-

37,979

-

(75.7)

-

79,830

76,270

4.7

9,245

37,979

(75.7)

Exceptional item

Gain/(loss) on disposal of
wine & liquor operations...

25,126

(3,528)

N/M

---------

Operating profit before taxation.......................

104,956

72,742

44.3

9,245

37,979

(75.7)

Taxation.......................

(27,093)

(27,245)

(0.6)

(3,645)

(9,697)

(62.4)

---------

Operating profit after taxation........................

77,863

45,497

71.1

5,600

28,282

(80.2)

Attributable to outside shareholders...................

(14,530)

(10,412)

39.6

---------

Attributable net profit -

   Continuing operations....
   Discontinued operations
   - wine & liquor
      Earnings...................
      Gain/(loss) on       disposal....................

44,079

-

19,254

33,553

3,592

(2,060)

31.4

N/M

N/M

5,600

-

-

28,282

-

-

(80.2)

-

-

63,333

35,085

80.5

5,600

28,282

(80.2)

=====

Attributable net profit had
there been no change in
accounting policy #............ 63,333 31,286 102.4 5,600 28,282 (80.2)

N/M - Not Meaningful
# - See Note 7

2.	RATIOS	Group
		-- Half year to --
		31/3/2001	31/3/2000
			(restated)#
	Operating profit after tax before deducting minority interests as a percentage of turnover	14.7%	6.7%

	Earnings per ordinary share based on existing issued share capital:
	- Before exceptional items........................................	17.4 cents	14.7 cents
	- After exceptional items..........................................	25.0 cents	13.9 cents

	Earnings per ordinary share on a fully diluted basis:
	- Before exceptional items........................................	17.4 cents	14.7 cents
	- After exceptional items..........................................	25.0 cents	13.9 cents

	Net tangible asset backing per ordinary share....................	$2.65	$2.65

3.	SEGMENTAL RESULTS	Turnover		PBIT *
	Group turnover and profit analysis	-- Half year to --		-- Half year to --
		31/3/2001	31/3/2000	31/3/2001	31/3/2000
					(restated)#
	By Business Activity	$'000	$'000	$'000	$'000
	Brewery operations
	- Subsidiary companies...................................................	528,021	498,767	68,206	60,314
	- Joint venture companies...............................................	-	-	9,191	11,586
	Investment income.............................................................	-	-	367	1,022
	Corporate office costs.........................................................	-	-	(1,813)	(4,907)
		---------	---------	---------	---------
		528,021	498,767	75,951	68,015
	Discontinued operations - wine & liquor...............................	-	177,353	-	9,260
		---------	---------	---------	---------
		528,021	676,120	75,951	77,275
		=====	=====	=====	=====
	By Territory
	Singapore...........................................................................	188,294	181,188	31,776	34,884
	Malaysia..............................................................................	-	-	6,060	6,002
	Papua New Guinea..............................................................	45,334	54,334	8,254	8,540
	New Zealand.......................................................................	115,805	118,068	15,115	17,852
	Indochina...........................................................................	154,029	126,746	17,735	13,429
	China..................................................................................	24,559	18,431	(5,464)	(11,083)
	Thailand..............................................................................	-	-	4,288	3,298
	Corporate office costs..........................................................	-	-	(1,813)	(4,907)
		---------	---------	---------	---------
		528,021	498,767	75,951	68,015
	Discontinued operations - wine & liquor...............................	-	177,353	-	9,260
		---------	---------	---------	---------
		528,021	676,120	75,951	77,275
		=====	=====	=====	=====
* - PBIT = Profit before interest, tax and exceptional items # - See Note 7

4.	ATTRIBUTABLE NET PROFIT	Group
		-- Half year to --
		31/3/2001	31/3/2000
			(restated)#
		$'000	$'000
	Brewery operations
	- Subsidiary companies..................................................	40,693	30,737
	- Joint venture companies..............................................	4,832	6,919
	Investment income............................................................	367	804
	Corporate office costs........................................................	(1,813)	(4,907)
		---------	---------
		44,079	33,553
	Discontinued operations - wine & liquor.............................	19,254	1,532
		---------	---------
		63,333	35,085
		=====	=====
# - See Note 7

5.	BALANCE SHEET	Group		Company
		31/3/2001	31/3/2000	31/3/2001	31/3/2000
		$'000	$'000	$'000	$'000

	Fixed assets.......................................................................	497,101	590,391	2,211	2,130
	Subsidiary companies........................................................	-	-	772,537	816,754
	Joint venture companies....................................................	80,844	76,365	89,063	115,076
	Associated companies........................................................	1,405	1,234	-	-
	Other investments.............................................................	24,483	29,232	11,847	11,847
	Brands..............................................................................	6,186	-	6,186	-
	Current assets
	- Cash..........................................................................	271,949	228,758	186	68,515
	- Others........................................................................	160,555	305,122	16,680	104,157
	Current liabilities
	- Borrowings................................................................	(14,557)	(39,819)	-	-
	- Others........................................................................	(204,476)	(249,019)	(175,456)	(282,034)
	Deferred liabilities
	- Borrowings................................................................	(16,858)	(85,155)	(5,429)	(77,546)
	- Others........................................................................	(25,142)	(23,965)	-	-
		---------	---------	---------	---------
	Net assets..........................................................................	781,490	833,144	717,825	758,899
		=====	=====	=====	=====

	Financed by:-
	Share capital.....................................................................	253,125	253,125	253,125	253,125
	Reserves...........................................................................	424,996	416,651	464,700	505,774
		---------	---------	---------	---------
		678,121	669,776	717,825	758,899
	Outside shareholders........................................................	103,369	163,368	-	-
		---------	---------	---------	---------
		781,490	833,144	717,825	758,899
		=====	=====	=====	=====

6.	GROUP CASH FLOW STATEMENT
		-- Half year to --
		31/3/2001	31/3/2000
			(restated)#
		$'000	$'000

	Operating profit before taxation.........................................	104,956	72,742
	Adjustments for non cash items..........................................	(12,747)	19,073
	Changes in working capital and currency realignment........	5,162	(52,747)
	Income tax paid................................................................	(13,478)	(12,892)
		---------	---------
	Cash flow from operating activities.....................................	83,893	26,176
		---------	---------

	Purchase of fixed assets and investments............................	(13,502)	(16,079)
	Proceeds from sale of assets and investments......................	109,355	17,234
	Loans to joint venture company........................................	(10,505)	(4,106)
	Investment income............................................................	7,708	8,764
		---------	---------
	Cash flow from investing activities......................................	93,056	5,813
		---------	---------

	Repayment of loans...........................................................	(35,129)	(21,821)
	Capital reduction paid to outside shareholders....................	(25,451)	-
	Payment of dividends .......................................................	(27,635)	(28,360)
		---------	---------
	Cash flow used in financing activities..................................	(88,215)	(50,181)
		---------	---------

	Net cash increase/(decrease) for the period........................	88,734	(18,192)
	Cash at beginning of the period.........................................	183,215	246,950
		---------	---------
	Cash at end of period........................................................	271,949	228,758
		=====	=====
# - See Note 7

CHANGE IN ACCOUNTING POLICY

In compliance with new Statements of Accounting Standard, the Group has this year modified its accounting policy in respect of:

deferred expenditure (mainly pre-operating expense) which is now written off in the year incurred instead of being amortised over the first three years of operation; and

items outside normal trading activities which are now treated as ìexceptionalî instead of ìextraordinary" and are presented before calculating "operating profit before taxation".

In consequence, deferred expenditure as at 1 October 1999, $4.3 million, was adjusted by a charge against reserves. The comparative figures in the profit statement for the six months to 31 March 2000 have been restated in accordance with the new policy resulting in attributable profit for that period, $35.1 million, being higher than previously reported by $3.8 million (last year as reported: $31.3m).

REVIEW OF OPERATIONS

The principal activities of the Group are the brewing and sale of beer and stout. These activities are carried out through the Companyís subsidiary, joint venture and associated companies to which the Company also provides management and administrative services.

Investment income of the Company is derived mainly from dividends from its subsidiaries. In compliance with a new Statement of Accounting Standard, such dividends are no longer reported until they are declared (being after 31 March 2001). This accounts for the reduction in the Companyís reported income for the period. The dividends, which previously would have been accrued in the first half year, will now be taken up in the second half.

Group operating profit before interest, taxation and exceptional item (PBIT) from continuing operations increased by 11.7% to $76 million for the half year. Attributable net profit from continuing operations increased by 31.4% to $44.1 million.

Singapore
Higher marketing spending under subdued market conditions especially in the stout category, could only be partially offset by strong growth in export sales.

Malaysia
PBIT was maintained despite competitive market conditions.

Papua New Guinea
PBIT is stable despite a decline in turnover arising from the disposal of soft drinks operations and a weaker Kina.

New Zealand
Profitability of the New Zealand domestic beer market remained stable but was affected by translation losses due to the weaker NZ$. The sale of the wine business was completed early in the present financial period (see "Exceptional Item" below).

Indochina
Improved sales volume and product mix boosted profitability in Vietnam significantly. Strong sales growth and translation gains from a stronger US$ improved PBIT in Cambodia.

China
After several years of initial losses, Hainan has started making profits. Losses in Shanghai have also narrowed. However, the Groupís share of losses in Shanghai increased due to the additional equity interest acquired from our Chinese partners at the beginning of the financial year.

Thailand
Strong sales growth was partially negated by the weakening of the Thai Baht.

Corporate Office Cost
Corporate Office Cost declined due to higher royalty income and exchange gains.

Exceptional Item
The disposal of the wine business by DB Group resulted in a gain of $25.1 million. In the previous period the disposal of the liquor business resulted in a loss of $3.5 million which was then shown as an extraordinary item. This has now been reclassified as an exceptional item.

Net Interest Income
The group registered a net interest income this half year as a result of interest earned from the funds received from the disposal of wine business and lower borrowings.

Net Tangible Assets (NTA)
NTA per share on 30 September 2000 was at $2.40. The NTA per share as at 31 March 2001 increased to $2.65 as a result of the unappropriated profits earned over the last 6 months.

OUTLOOK

Attributable net profit from continuing operations before exceptional items for the second half is expected to be better than the same period last year although lower than the first half of this year which traditionally benefits from the festive seasons.

A prolonged downturn in the world economy could impact consumer spending especially in Singapore and Malaysia.

Profit levels in Papua New Guinea and New Zealand are expected to be sustained for the rest of the year subject to a stable Kina and NZ$.

Indochina is expected to continue its robust growth for the rest of the year.

Hainan is expected to continue its profitable growth. Full year losses in Shanghai are expected to be significantly lower than last year.

Continued growth in profit is expected in Thailand on the back of strong growth in sales.

Barring unforeseen circumstances, attributable net profit from continuing operations before exceptional items for the full year is expected to be well ahead of last year.

No significant trend or event affecting the earnings of the Company or the Group has occurred between the end of the financial period, 31 March 2001, and the date of this announcement.

10.	DIVIDEND
	(a)	The Directors have declared an interim dividend of nine (9) Singapore cents (last year: 9 cents) per share, being AFTER deduction of Singapore tax, to be paid on 6 July 2001. This is equivalent to a gross (pre-tax) dividend of 11.9%.
	(b)	Registrable transfers received by the Company's Registrars, Barbinder & Co Pte Ltd, 8 Cross Street, #11-00 PWC Building, Singapore 048424 by 5.00pm on 26 June 2001 will be registered before entitlements to the dividend are determined. Notice is hereby given that the share registers will be closed on 27 June 2001 and 28 June 2001 for preparation of dividend warrants.

BY ORDER OF THE BOARD
I A MacLean
Company Secretary

8 June 2001

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