Profits Surge 41 Percent at Wilmar
11 Nov 2016 --- The world's biggest palm oil processor has reported that pre-tax profits swelled by 41 percent to $567m in Q3, driven by a strong performance from its Tropical Oils and Oilseeds and Grains units.
Wilmar International, headquartered in Singapore, reported that revenues were up 4.1 percent to $11.1bn in the quarter, mainly down to higher commodity prices.
Its business spans oil palm cultivation, oilseed crushing, edible oils refining, sugar milling, speciality fats, biodiesel and fertilisers.
Across Tropical Oils, pre-tax profits vaulted 81 percent to $169.3m, helped by the performance of its downstream business.
Higher cruder palm oil prices helped offset reduced production yields caused by the El Nino weather phenomenon.
Across Oilseeds & Grains, pre-tax profits came in at $248m, up from $243.6m the year previous, helped by its consumer products and oilseed crushing business.
However, pre-tax profits declined 21 percent to $86.4m across its Sugar division, as it was hit by a disruption in harvesting due to the wet weather in Australia as well as weaker performance by its merchandising business.
Wilmar's Q3 results to the end of September contrasts with its Q2 results when it reported a £220m loss due to an “untimely purchases of soybeans in a highly volatile market”.
Kuok Khoon Hong, Chairman and CEO, said, “The recovery in the group’s third quarter results was driven by good performances in both the Oilseeds and Grains as well as Tropical Oils segments.”
“Looking ahead, the group will continue to execute on its stated growth strategy, with emphasis on its downstream businesses and focusing on high growth markets in Asia and Africa. Barring any unforeseen circumstances, the group’s performance for the rest of the year is expected to be satisfactory.”
