Wilmar International, the world's biggest listed palm oil processor, reported on Friday first-quarter net profit of US$386.7 million (s$479 million), a 3.7-per-cent decline from the corresponding period a year ago, but the performance still easily beat the US$325-million consensus estimate of analysts surveyed by Bloomberg.
The group traced the profit decline in the period ended March 31 to higher raw material and operating costs, as well as fair-value losses on derivatives of its convertible bonds.
Higher prices of agricultural commodities drove the firm's revenue by 41 per cent year-on-year to US$9.5 billion. Its palm oil processing business grew by an annual 38.8 per cent to US$5.1 billion, accounting for more than half of total revenue. Revenue from its consumer product line soared by 61.1 per cent to US$1.7 billion, while its plantations and palm oil mills contributed US$396.8 million, a 45.7-per-cent increase.
Its sugar milling and refining business, a new segment that was an offshoot of its acquisition last year of sugar refiners Sucrogen and Jawamanis, generated a combined US$368 million. The group said its margins continued its downhill trend during the quarter, owing to the price increase restrictions in its main market, China.
Wilmar chairman and chief executive Kuok Khoon Hong said growth prospects remained positive despite expectations that China was unlikely to lift price controls on food products soon.
Wilmar shares gained 26 cents, or 1.1 per cent, to close at s$5.35 apiece on Friday.
0 comments:
Post a Comment