Revenue for the third quarter was $11.084 billion, up 4.1% compared to $10.649 billion in the third quarter of 2015.
Oilseeds and Grains and Tropical Oils helped the company return to profit following a second-quarter loss of $220.1 million.
“The recovery in the group’s third-quarter results was driven by good performance in both the Oilseeds and Grains as well as Tropical Oils segments,” said Kuok Khoon Hong, Wilmar’s chairman and chief executive officer, when results were announced on Nov. 10. “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.”
In the third quarter the company’s Oilseeds and Grains segment saw a pre-tax profit of $248.132 million, up 18.5% from $243.618 million in the same period of last year.
Amidst the challenging operating conditions, the Oilseeds and Grains segment turned around and showed significant recovery from the second quarter of 2016, Wilmar said. The segment recorded a profit before tax of $248.132 million, up 18.5% from $243.618 million in the same period of last year, from both Consumer Products and Oilseed crushing businesses. Losses recognized in the second quarter of 2016, due to untimely purchases of raw materials, reduced profit before tax for the first nine months of 2016 to $73.2 million compared to a profit before tax of $525.6 million in the same period of last year.
The Oilseeds and Grains segment’s revenue for the quarter was $4.739 billion, down 2.3% from $4.853 billion. Sales volume decreased marginally by 0.1 million tonnes to 7.9 million tonnes in the third quarter of 2016.
The company’s stock was trading at S$3.35 per share, up S$0.03, on the Singapore Exchange Ltd. on Nov. 10.
The company recently formed two joint ventures. In May, Wilmar and Ruchi Soya Industries Ltd. agreed to combine their procurement, marketing, distribution and sales businesses in India. The manufacturing requirements of the joint venture company were proposed to be fulfilled by Adani Wilmar, a joint venture between Adani Group and Wilmar, and Ruchi Soya. It was proposed that Adani and Wilmar will, through Adani Wilmar, jointly hold an equity stake of 66.66% in the joint venture company, and Ruchi Soya will hold 33.34%. A non-binding term sheet has been signed in this regard.
In July, it was announced that Bunge would sell 45% of its equity in its Vietnam crush operations to Wilmar, creating a three-party joint venture with Bunge and Wilmar as equal 45% shareholders and Quang Dung — a leading soybean meal distributor in Vietnam and majority owner of Green Feed, a growing Vietnamese feed milling business — retaining its existing 10% stake in the operations.