Search

MORE NEWS
AGRIBUSINESS | Staff Reporter, Singapore
Published: 22 Feb 12
759 views


Wilmar’s net profit surges 21% to US$1.60b in 2011

Sales volume from its Oilseeds & Grains segment grew the most, by 30% last year.

According to a financial statement, Wilmar International Limited posted a 57% increase in net profit to US$500.0 million for the quarter ended 31 December, 2011. The Group’s net profit for the year ended December 31, 2011, increased 21% to US$1.60 billion.

The improvement in net profit was largely due to better performance in the Oilseeds & Grains segment, contributions from the new Sugar segment as well as a sharp improvement from Associates.

Total revenue was up 27% to US$11.52 billion for the quarter and up 47% to US$44.71 billion for the year on the back of increased sales volume, particularly from Oilseeds & Grains and Consumer Products as well as contribution from the Sugar segment.

Excluding non-operating items and net gains from biological assets, the Group’s net profit more than tripled to US$264.5 million in 4Q2011 (4Q2010: US$83.5 million) and increased 44% to US$1.52 billion in FY2011 (FY2010: US$1.05 billion).

The non-operating items showed a pre-tax income of US$71.3 million for 4Q2011, which included foreign exchanges differences from intercompany loans to subsidiaries, gains or losses from investment securities, fair value changes on embedded derivatives of the Group’s convertible bonds, interest expense directly attributable to the funding of the Sucrogen acquisition and an accounting profit within the Sugar segment relating to pre-acquisition hedging reserves.

Business Segment Performance
Merchandising & Processing – During the quarter, Palm & Laurics recorded an 8% decline in sales volume to 5.3 million metric tonnes due to weaker demand from Europe and India. Margins contracted in line with unfavourable market conditions in China and India, the financial crisis in Europe and the disadvantaged position of Malaysia given the new Indonesian export duty structure.

However, the Group’s Indonesian operations benefited from the changes in the Indonesian export duty and hence the Group was able to record a respectable pretax profit of US$108.6 million in 4Q2011.

Oilseeds & Grains registered an increase of 30% in sales volume to 6.2 million MT driven by improved demand from the livestock industry as well as higher flour and rice volume. However, crush margins in China remained challenging in 4Q2011.

Nevertheless, the pretax profit of US$1.7 million was a sharp recovery from the pretax loss of US$173.2 million in 4Q2010. Consumer Products recorded a 14% increase in sales volume to 1.2 million MT mainly due to improved sales of consumer pack oils, flour and rice in China. Selling prices for consumer pack oils were higher during the quarter, following a price increase on 1 August 2011. But margins were lower compared to 4Q2010 as the price increase was lower than the increase in the cost of edible oils feedstock. Pretax profit declined 12% to US$33.2 million.

Plantations & Palm Oil Mills - Excluding a revaluation gain from biological assets of US$262.7 million, pretax profit was US$113.4 million, a decrease of 12% over 4Q2010 as a result of lower realised CPO prices and higher unit production cost. The Group’s production of fresh fruit bunches increased by 16% to 1.1 million MT reflecting an increase in mature hectarage and an improvement in production yield. Yield was up 5% to 5.4 MT per hectare due to improved crop trend, improving yield of young palm trees as well as favourable weather conditions.

Sugar is a new segment following the Group’s acquisition of Sucrogen Limited and PT Jawamanis Rafinasi in FY2010 and Proserpine Co-operative Sugar Milling Association and PT Duta Sugar International in FY2011. The segment comprises the Milling and Merchandising & Processing businesses. For FY2011, this new Sugar segment reported a pre-tax profit of US$141.3 million. Excluding non-operating items, pre-tax profit was US$94.2 million.

In 4Q2011, Milling sales volume was 1.1 million MT while pretax profit was US$101.9 million. Excluding non-operating items, pretax profit was US$42.3 million. Earnings for the quarter were affected by the receipt of poorer quality standover cane from the previous season with high impurity levels and low cane extraction rate, as well as wet weather downtime in certain regions.

Merchandising & Processing sales volume was 567,000 MT while pretax loss was US$3.5 million in 4Q2011. Excluding non-operating items, pretax loss was US$12.7 million for the quarter. Performance for the quarter was affected by lower margins and sales volume, additional maintenance costs and some provisions.

Others segment saw a decline of 59% in pretax profit to US$24.7 million due to decrease in gains from investment securities, lower fertiliser profit as well as lower shipping profits.

Associates saw a sharp improvement, contributing US$42.0 million in 4Q2011 compared to a loss of US$21.1 million in Q42010.

Dividend
The Board has proposed a final tax exempt (one-tier) dividend of S$0.031 per share. Including the interim dividend of S$0.03 per share paid in September 2011, the total dividend paid and proposed for FY2011 is S$0.061 per share, representing a dividend payout of about 20%.
 



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: Wilmar’s net profit 2011, Wilmar revenue 2011, agribusiness singapore, Oilseeds & Grains

CO-WRITTEN ARTICLES & SPONSOR CONTENT ››

Here's why Concorde Hotel Singapore and Putrajaya International Convention Centre lead the way in technology and building efficiency.
333 views

LATEST AGRIBUSINESS JOBS »
PRINT ISSUE »

Subscribe Now
What factors are keeping expats rooted in Singapore?

28 views

Can Asian private equity outgrow the west?

3 views

15 smart ideas to outwit the wiliest investment wolves this Year of the Sheep

11 views

MOST READ EXCLUSIVES

Singapore's 12 most influential business professors under 40

Singapore\'s 12 most influential business professors under 40

The youngest is aged 34.

by KRISANA GALLEZO
23 Oct 2014 | 70965 views
 

11 craziest credit card purchases in Singapore

11 craziest credit card purchases in Singapore

Find out if each is worth the outlay.

by KRISANA GALLEZO
22 Sep 2014 | 50316 views

Singapore’s 7 hot new restaurants in September

Singapore’s 7 hot new restaurants in September

Have you checked out a very secretive cafe at 48 ¾ Niven Road?

by KRISANA GALLEZO
6 Oct 2014 | 26487 views
 

Singapore’s top 5 work from home jobs

Singapore’s top 5 work from home jobs

Here are jobs that you can do while sitting on your couch or in your favorite coffee shop.

by KRISANA GALLEZO
11 Dec 2014 | 14533 views

Check out General Motors’ new HQ in Singapore

Check out General Motors’ new HQ in Singapore

A ‘hot desks’ rule is implemented in the new office.

by KRISANA GALLEZO
3 Oct 2014 | 12290 views
 

Singapore’s 10 favorite meals on wheels

Singapore’s 10 favorite meals on wheels

You better cut the pizza: An Italian dish bagged the number 1 spot.

by KRISANA GALLEZO
17 Oct 2014 | 11975 views

Don’t settle for less: Legendary Hong Kong brings authentic and traditional HK dishes to Singapore

Don’t settle for less: Legendary Hong Kong brings authentic and traditional HK dishes to Singapore

The restaurant’s construction cost over a million dollars.

by KRISANA GALLEZO
3 Nov 2014 | 7344 views
 

Get ready to work and play at Spotify’s regional office

Get ready to work and play at Spotify’s regional office

All the furniture except the bean bags were imported from Sweden.

by KRISANA GALLEZO
23 Sep 2014 | 5326 views

Opera Estate welcomes a little bar simply called ‘Slake’

Opera Estate welcomes a little bar simply called ‘Slake’

It wants to be your living/dining room outside of home.

by KRISANA GALLEZO
25 Sep 2014 | 4779 views
 

The new Acronis HQ will make you feel like ‘walking into blue space’

The new Acronis HQ will make you feel like ‘walking into blue space’

Also, check out photos of its 7-eleven-like pantry amenities.

by KRISANA GALLEZO
28 Oct 2014 | 4458 views

Sofitel in Sentosa launches world's largest So SPA

Sofitel in Sentosa launches world\'s largest So SPA

Future plans are finally revealed.

by KRISANA GALLEZO
22 Oct 2014 | 4013 views
 

Will you take up the challenge to live on $5 a day and share the experience?

Will you take up the challenge to live on $5 a day and share the experience?

This campaign already generated over 8,000 followers on Facebook.

by KRISANA GALLEZO
23 Sep 2014 | 3166 views

Want to know a ‘smart’ way to have your clothes washed?

Want to know a ‘smart’ way to have your clothes washed?

My Laundry Box introduces a smart laundry locker platform that works with an app.

by KRISANA GALLEZO
17 Oct 2014 | 3133 views
 

Could this be the most intelligent phonebook app yet?

Could this be the most intelligent phonebook app yet?

It’s self-updating and removes duplicates for worry-free contacts storage.

by KRISANA GALLEZO
29 Sep 2014 | 3037 views

Arete Culture opens first store in Lam Soon Building

Arete Culture opens first store in Lam Soon Building

It's a one-stop shop for your quirky interior decors.

by KRISANA GALLEZO
24 Sep 2014 | 2992 views
 

Do you want to build your own bike?

Do you want to build your own bike?

This store allows owners to creatively piece bike parts on their own.

by KRISANA GALLEZO
28 Oct 2014 | 2346 views

Hippy Tyrwhitt Road welcomes a resto-bar offering an all-day happy hour

Hippy Tyrwhitt Road welcomes a resto-bar offering an all-day happy hour

See how a radio DJ pursued his love for food.

by KRISANA GALLEZO
20 Oct 2014 | 1961 views
 

Singapore’s first news aggregation app attracts 1 million users in two years

Singapore’s first news aggregation app attracts 1 million users in two years

Stay in the loop with news and lifestyle content from SBR and 600 other publishers.

by KRISANA GALLEZO
10 Dec 2014 | 1269 views

This device is making a statement that hand-waving gestures are not usable

This device is making a statement that hand-waving gestures are not usable

It's a creation by 3 young computer wizards from Singapore.

by KRISANA GALLEZO
25 Sep 2014 | 1177 views
 

World Cup 2014 might have ended but this anti-gambling campaign is far from over

World Cup 2014 might have ended but this anti-gambling campaign is far from over

Many suggested to put it down amidst criticism, but Goodfellas cannot be stunned.

by KRISANA GALLEZO
15 Oct 2014 | 1148 views

Jack Wills opens its first store in Singapore

Jack Wills opens its first store in Singapore

A 'fun' brand that values the Brit vibe. Put your game face on!

by KRISANA GALLEZO
10 Dec 2014 | 1121 views
 

What Singaporean investors can expect from Okinawa’s development

What Singaporean investors can expect from Okinawa’s development

A 40% tax cut in setting up business is expected to lure investors.

by KRISANA GALLEZO
12 Dec 2014 | 955 views

Now, hear this: You won't believe what your ears are seeing

Now, hear this: You won\'t believe what your ears are seeing

Ubersnap lets you upload photos with background music.

by KRISANA GALLEZO
2 Oct 2014 | 879 views
 

Kungfumath wants to revamp boring e-learning portals

Kungfumath wants to revamp boring e-learning portals

“Play with numbers” in its literal sense.

by KRISANA GALLEZO
5 Dec 2014 | 691 views

The future of innovation: What’s next after Facebook and Twitter?

The future of innovation: What’s next after Facebook and Twitter?

A video version of Twitter might be under way.

by KRISANA GALLEZO
11 Dec 2014 | 642 views
 

SFIC Institute's new training hub overhauls carpenters' career image

SFIC Institute\'s new training hub overhauls carpenters\' career image

It’s the first carpentry training center in Singapore’s furniture industry.

by KRISANA GALLEZO
10 Dec 2014 | 603 views

Inverted Edge gives spotlight to all independent contemporary fashion designers

Inverted Edge gives spotlight to all independent contemporary fashion designers

The homegrown startup has raised US$1.6M total funding in two years.

by KRISANA GALLEZO
3 Nov 2014 | 600 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter