May 09, 2014

    Wilmar gain dips in 'difficult' Q1

    NET profit for Wilmar International fell 48.7 per cent to US$161.8 million (S$202 million), in what the group described as a "difficult" first quarter. This translated into 2.5 US cents per share, down from 4.9 cents a year ago.

    Revenue for the three months ended March 31 was 0.7 per cent higher at US$10.3 billion.

    The largest palm oil processor in the world had been hit by lower palm refining margins and negative crush margins in China.

    The lower refining margins will continue to be alleviated by improved plantation earnings, as well as continually strong contributions from high-margin palm and lauric products, it said.

    In China, such conditions will not be sustainable in the long term, and eventual consolidation will benefit the group, it added.

    "In the meantime, we are encouraged by continual growth in our consumer-product sales volume, especially in rice and flour, and in emerging markets like Vietnam and Indonesia," said Wilmar.