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Wilmar's net profit grows more than 50%

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Staff writer ▼ | May 9, 2013
Agribusiness group Wilmar International posted a 23% increase in net profit to $315.4 million for the quarter ended March 31, 2013.
Wilmar International
Wilmar InternationalAgribusiness group Wilmar International posted a 23% increase in net profit to $315.4 million for the quarter ended March 31, 2013.

Excluding non-operating items, the group's net profit saw robust growth of 53% to $313.7 million in Q1 2013 (Q1 2012: $205.6 million).

During the quarter, Palm & Laurics recorded a 7% increase in sales volume to 5.5 million metric tonnes as demand was boosted by lower prices for palm products. The group continued to benefit from the revised Indonesian export duty structure and the robust contribution from downstream valueadded products.

Oilseeds & Grains registered an increase of 6% in sales volume to 4.7 million MT due to increased demand for the Group's products. The Group recorded a strong pretax profit of $47.2 million, a sharp reversal from the losses in Q1 2012.

Consumer Products recorded a 10% increase in sales volume to 1.3 million metric tonnes on the back of stronger demand for edible oils, flour and rice. Reflecting the higher sales volume and a slight increase in overall margins, pretax profit increased 12% to $56.5 million.

Plantations & Palm Oil Mills saw a 27% decline in pretax profit to $72.1 million due mainly due to lower average selling price of CPO. This was partially offset by a drop in unit production cost from lower fertiliser prices.

In Q1 2013 Sugar reported a reduced pretax loss of $13.6 million compared to a pretax loss of $47.9 million in Q1 2012. Excluding non-operating items, the pretax loss was $9.5 million (Q1 2012: $47.6 million pretax loss). Merchandising & Processing reported a more than four-fold jump in pretax profit to $42.1 million. Excluding non-operating items, pretax profit was $43.8 million (1Q2012: $12.3 million). This was mainly attributed to volume growth, higher profit from merchandising activities and stronger margins in the group's Indonesian refineries which benefited from lower unit production cost.

The Others segment recorded a pretax loss of $13.6 million in 1Q2013 as a result of weaker fertiliser performance from declining price trend and a drop in net gain from investment securities.

"With our resilient integrated business model and new businesses developed in the last few years, we are reasonably confident that we will overcome the difficult environment expected for the rest of the year," said Kuok Khoon Hong, chairman and CEO.