Increased crush margins in oilseeds, grains buoys Wilmar earnings

by Holly Demaree
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SINGAPORE – Wilmar International Ltd.’s net profit in the third quarter ended Sept. 30 was $370 million, equal to 5.8¢ per share on the common stock, down 5.1% from $392.3 million, or 6.2¢ per share, in the same quarter as last year.

Revenue for the quarter was $11.128 billion, up 0.4% compared with $11.084 billion in the third quarter of 2016.

Wilmar CEO and president Kuok Khoon Hong
Kuok Khoon Hong, chairman and CEO of Wilmar.
“We expect the good performance in the Oilseeds & Grains segment to continue into the fourth quarter, with crush margins and volume anticipated to remain positive,” said Kuok Khoon Hong, chairman and chief executive officer (CEO) of Wilmar. “Performance of the other major business segments is expected to be satisfactory. With good economic performance in key Asian countries, we remain optimistic about the future of Asia. We will continue with our expansion plans, especially in Oilseeds and Grains, including Consumer Products.”

Wilmar noted the good performance in Oilseeds & Grains and strong contributions from associates were offset by weaker results in the Tropical Oils and Sugar businesses.

Driven by higher crush volume and good crush margins, Oilseeds & Grains registered a pretax profit of $253.7 million in the third quarter of 2017, up slightly from 248.1 million in the same period a year ago. 

Overall sales volume for Oilseeds & Grains increased by 1.3 million tonnes to 9.2 million tonnes in the third quarter of 2017 compared with 7.9 million tonnes in the same period of last year.  

Wilmar’s business activities include oil palm cultivation, oilseed crushing, edible oils refining, sugar milling and refining, manufacturing of consumer products, specialty fats, oleochemicals, biodiesel and fertilizers as well as rice and flour milling. At the core of Wilmar’s strategy is an integrated agribusiness model that encompasses the entire value chain of the agricultural commodity business, from cultivation, processing, merchandising to manufacturing of a wide range of branded agricultural products. It has more than 500 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries. The group has a multinational workforce of about 90,000 people. 
 
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