SINGAPORE — Wilmar International Limited on Nov. 11 reported a 2% increase in net profit of $422.4 million for the third quarter ended Sept. 30.
Excluding non-operating items, net profit grew 10% to $429.7 million in the quarter. The higher net profit was due to solid performances in most key segments as well as higher contributions from associates, Wilmar said. The recovery in Oilseeds & Grains continued to gain momentum, achieving strong profit growth in the quarter.
Plantations & Palm Oil Mills and Consumer Products also turned in strong performances, while Sugar results improved due to higher contributions from Merchandising & Processing. However, margin contraction in Palm & Laurics resulted in lower contributions from the segment.
The group’s net profit for the nine months ended declined 21% to 755 million, while revenue was marginally lower at $32.31 billion. Net profit excluding non-operating items fell by 15% to $807.4 million for the first nine months.
Oilseeds & Grains posted a robust 88% increase in pretax profit to $100.6 million, mainly due to improved crush margin in China. Sales volume grew 3% to 5.8 million tonnes.
Kuok Khoon Hong, chairman and chief executive officer, said, “Crushing margin in the fourth quarter is expected to remain positive. As we enter the traditional festive season, we expect to benefit from continued improvements in our rice and flour businesses, as well as stable contributions from Consumer Products. We also expect satisfactory performance in Plantation & Palm Oil Mills. However, compressed margins in Palm & Laurics will likely persist due to lower CPO production and excess refining capacity in Indonesia.We are optimistic on the prospects for China, India and Indonesia, as well as on Africa despite the outbreak of Ebola, and will continue to expand our operations in these key growth markets.”