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'Organic growth' helps Hagemeyer

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SCMP Reporter

FIRST Pacific's remaining Dutch asset, trader and distributor Hagemeyer, has announced a 20 per cent rise in full-year net ordinary profits.

Profits grew to 122.6 million guilders (about HK$515 million) last year, from 102.2 million guilders in 1992.

Exceptional items, including profits from the sale of a Singapore property and income generated from the termination of a distribution agreement with Matsushita of Japan, took total net profit to 160.8 million guilders, up 56 per cent.

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European currency devaluations, which have cut the guilder's value by 25 per cent, are likely to reduce the impact of the figures on First Pacific's final results, to be announced next week.

First Pacific owns about 50 per cent of Hagemeyer, against about 60 per cent two years ago. First Pacific has sold some shares, and preference shares have been converted, diluting First Pacific's stake. The exercise of executive options has also effectively reduced First Pacific's stake.

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Sales at the Dutch firm grew by 15.3 per cent, from 3.4 billion guilders in 1992 to 3.92 billion last year.

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