28 February 1996
BERLI JUCKER ANNOUNCES
13 PER CENT RISE IN 1996 NET PROFIT
Berli Jucker Public Co. Ltd., announced today that net income rose 12.8 per cent in 1996 to Baht 610.4 million from 1995’s Baht 541.3 million, as the spread of business across its four core operating areas enabled it to achieve solid growth despite the slowing of Thailand’s economy.
Full-year revenue increased 9.7 per cent to Baht 10,129 million from Baht 9,237 million, while earnings per share increased 12.8 per cent to Baht 10.57 from Baht 9.37.
Commenting on the results, Berli Jucker's President, Dr. Adul Amatavivadhana, said: "The net profit growth figure reflects the effect of 1995’s gain of Baht 60 million from the sale and restructuring of investments; there were no similar items in 1996. Excluding exceptional items, growth in net profit this year was actually 27 per cent.
"The Consumer Products business was our main profit driver, led by very strong sales of tissue paper, confectionery, snack foods, personal care products and wine. These operations gained momentum throughout the year, due to a combination of successful product launches, marketing innovations and improved distribution. In the fourth quarter they achieved a 40 per cent growth in sales compared with a year earlier.
"Our Engineering business improved its contribution in the fourth quarter compared with 1995 but, due to substantially increased losses at Thai Scandic Steel, its contribution was negative for the year as a whole. The Company's own engineering division achieved exceptional profit growth due to the completion in the fourth quarter of two large crane installation projects, while our associates Siemens Limited and BJT Water both achieved substantial performance improvements compared with 1995.
Our Glass Products business achieved 18 per cent sales growth for the year, but this growth came in the first six months and reflected the benefits of the substantial expansion in capacity which was commissioned in mid-1995. The year’s second half saw a number of key customers postponing orders, and overall capacity utilization in 1996 was lower than in 1995 which benefited from full utilisation in the first half of the year. Despite lower than expected demand, the Glass Products group achieved an increase in profit contribution of over 11% and prospects for further improvements in 1997 are very encouraging.
The Technical Products business achieved strong growth in most areas led by significantly increased sales of pharmaceuticals, hospital supplies, chemicals and stationery, although sales of photographic and imaging equipment were relatively flat due to a generally weakening market."
Looking to 1997, Dr. Adul concluded: "Prospects in our key business areas are good. Further significant sales increases across the whole range of our Consumer Products are expected and we are seeing a resumption of demand growth for Glass Products. The Engineering group has entered the year with a strong order book and in particular an improved outlook for Thai Scandic Steel, now that design and management problems have been corrected.
Our profitability in 1997 will be helped by the closure of a number of loss making non-core operations in 1996. We have switched our borrowings from mainly US dollars to mainly Baht to ensure we properly match our assets and liabilities. Although this superficially raises borrowing costs it provides an appropriate financing platform for our operations and, at this stage, I am expecting 1997 should be anther year of good profit growth."
Berli Jucker is 44.7 per cent held by First Pacific Company, an Asian-oriented conglomerate with operations in the areas of Marketing & Distribution, Telecommunications, Property and Banking.
For further information, please contact :
| Dr. Adul Amatavivadhana President Berli Jucker Public Co., Ltd. | Tel: (662) 367 1012 |
| David Nicol Executive Vice President & C.F.O. | Tel: (662) 367 1024 E-Mail: davidnicol@berlijucker.com.th |
| Robert Sherbin Group Vice President Corporate Communications First Pacific Company Limited | Tel: (852) 2842 4380 |
| Paul Wallace Group Financial Controller First Pacific Company Limited | Tel: (852) 2842 4225 |
Company information can also be accessed on:
Internet: irasia.com/listco/hk/firstpac
E-mail: info@firstpac.com.hk
| © Copyright 1996-2015 irasia.com Ltd. All rights reserved. |
|
DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any
information provided on this website. Under no circumstances shall irasia.com Ltd be liable
for damages resulting from the use of the information provided on this website.
TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website. |