SINGAPORE (Yosefardi) – Wilmar International Limited, Asia’s leading agribusiness group, posted a 49% decrease in net profit to US$161.8 million for the quarter ended March 31, 2014 (1Q2014).
The lower net profit in 1Q2014 reflected seasonal losses in Sugar, negative soybean crushing margins as well as tougher operating conditions for Palm & Laurics.
Associates also recorded lower contributions. However, the Group’s Plantations & Palm Oil Mills and Consumer Products segments performed strongly.
The Group registered strong volume growth of 17% in Consumer Products during the quarter. Despite higher palm prices in 1Q2014, revenue increased only marginally to US$10.27 billion due to lower average selling prices of sugar and consumer pack oils.
Palm & Laurics recorded slightly higher sales volume of 5.6 million metric tons (MT) in 1Q2014. Oilseeds & Grains registered an increase of 6% in sales volume to 5.0 million MT due to the completed capacity expansion in the Group’s grains operations, especially flour.
Consumer Products recorded a 17% increase in sales volume to 1.5 million MT on the back of growing demand for good quality consumer products, especially in the Group’s consumer pack oils and rice in China, as well as stronger sales volume in Vietnam and Indonesia.
Plantations & Palm Oil Mills achieved a 53% increase in pretax profit to US$110.4 million due to higher average selling prices of CPO and palm kernel from the Group’s own fruits as well as improved production yields.
The segment also benefited from lower fertiliser costs and depreciation of the Indonesian Rupiah during the quarter.
Production yield was higher by 11% to 4.9 MT per hectare as a result of better crop trend in Indonesia and Malaysia as well as younger palm to maturity in Sabah. Total production of fresh fruit bunches increased by 7% to 1,057,172 MT for 1Q2014.
Sugar reported a higher pretax loss of US$54.0 million in 1Q2014 compared to a pretax loss of US$13.6 million in 1Q2013. Milling reported a pretax loss of US$79.2 million compared to a pretax loss of US$55.7 million in 1Q2013. Merchandising & Processing registered a 12% increase in sales volume to 1.4 million MT in 1Q2014.
The Others segment recorded a pretax loss of US$36.6 million in 1Q2014 (1Q2013: pretax loss US$13.6 million) primarily due to higher investment losses, partially offset by better performance from the fertiliser business.