Search

MORE NEWS
AGRIBUSINESS | Staff Reporter, Singapore
Published: 22 Feb 12
787 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

LATEST AGRIBUSINESS JOBS »
  • No jobs posted on this category.
PRINT ISSUE »

Subscribe Now
Survival of the fittest in Singapore’s franchising scene

23 views

Singapore’s IPO market falters as Hong Kong’s soars

11 views

Singapore’s “mid-life crisis”

55 views

MOST READ EXCLUSIVES

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

It boasts an automated sun-shading system.

by MARIANNE ESTIOCO
7 Jul 2015 | 14963 views
 

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

This small start-up has global dreams.

by MARIANNE ESTIOCO
8 Jul 2015 | 9682 views

Cocoa Colony to open 12 more outlets in Singapore by end-2015

Cocoa Colony to open 12 more outlets in Singapore by end-2015

The cafe chain seeks to target the masses.

by KRISANA GALLEZO-ESTAURA
21 Jul 2015 | 8926 views
 

10 smart ways to spend your GST Vouchers

10 smart ways to spend your GST Vouchers

Regardless of how much you spend, aim to spend it well.

by KRISANA GALLEZO-ESTAURA
8 Jul 2015 | 8593 views

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

Walls and windows function as a big canvas.

by MARIANNE ESTIOCO
15 Jul 2015 | 4732 views
 

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Meeting rooms are named after Asian tourist spots.

by MARIANNE ESTIOCO
5 Jun 2015 | 3713 views

Hootsuite boosts its APAC team opening a new office in Singapore

Hootsuite boosts its APAC team opening a new office in Singapore

Its VP talks about the importance of the company’s culture in line with opening the new space.

by LEE ANNE BABIERRA
18 Jun 2015 | 3335 views
 

Bye bye blurry video calls: Here’s a WebRTC startup that offers close to HD video quality using any device

Bye bye blurry video calls: Here’s a WebRTC startup that offers close to HD video quality using any device

Find out how they are building the next generation of web communications.

by LEE ANNE BABIERRA
2 Jun 2015 | 2703 views

Singapore’s first dedicated F&B development to open in East Coast Road

Singapore’s first dedicated F&B development to open in East Coast Road

Katong Square plans to open at the end of the year.

by STAFF REPORTER
31 Jul 2015 | 2616 views
 

Experience a different form of Thai casual dining at Gin Khao

Experience a different form of Thai casual dining at Gin Khao

The man behind the Jus Delish Group opens its flagship outlet at East Coast Parkway.

by STAFF REPORTER
19 Aug 2015 | 2555 views

CtrlShift’s new office exudes a ‘wow-effect’ without being too grand

CtrlShift’s new office exudes a ‘wow-effect’ without being too grand

Paying attention to small details paid off.

by LEE ANNE BABIERRA
29 Jul 2015 | 2266 views
 

Former college dropout built his own company and made $2million in just 2 years

Former college dropout built his own company and made $2million in just 2 years

He developed a hiring software for jobless women and youth.

by KRISANA GALLEZO-ESTAURA
20 Aug 2015 | 1839 views

Grant Thornton aims to grow staff to 200-300 people in Singapore

Grant Thornton aims to grow staff to 200-300 people in Singapore

Here’s what it will do differently compared to the Big Four.

by KRISANA GALLEZO-ESTAURA
29 Jul 2015 | 1614 views
 

This handy app lets you book nearly any service under the sun

This handy app lets you book nearly any service under the sun

Find technicians, babysitters and more with Page Advisor.

by MARIANNE ESTIOCO
8 Jun 2015 | 1593 views

Could this site be your new financial buddy?

Could this site be your new financial buddy?

It allows users to look for financial services based on their pre-calculated profile.

by LEE ANNE BABIERRA
30 Jul 2015 | 1520 views
 

The wait is over: American Eagle Outfitters opens flagship store in VivoCity

The wait is over: American Eagle Outfitters opens flagship store in VivoCity

Shop until you drop with its wide selection of denim washed jeans.

by STAFF REPORTER
19 Aug 2015 | 1483 views

This app is out to prove that Singapore is anything but boring

This app is out to prove that Singapore is anything but boring

And Sugar helps SMEs in the process too.

by MARIANNE ESTIOCO
2 Jun 2015 | 1481 views
 

PwC Singapore launches its first Investment Fund Centre in Asia

PwC Singapore launches its first Investment Fund Centre in Asia

Expanding its presence in the asset management sector across Asian region.

by LEE ANNE BABIERRA
29 Jun 2015 | 1383 views

Hey, boss: This startup wants to be your all-around sidekick

Hey, boss: This startup wants to be your all-around sidekick

Alpha7 wants SMEs to join the Cloud.

by STAFF REPORTER
16 Jun 2015 | 1362 views
 

How do you like getting cash rebates when shopping online?

How do you like getting cash rebates when shopping online?

ShopBack introduces this concept in Southeast Asia.

by STAFF REPORTER
21 Jul 2015 | 1349 views

Get your head in the game: Testing challenges await the Internet of Things

Get your head in the game: Testing challenges await the Internet of Things

Industry experts share their concerns over security and testing standards.

by LEE ANNE BABIERRA
4 Jun 2015 | 1260 views
 

Out with the old, in with the new: Arcc Offices refurbished its first serviced office in Singapore

Out with the old, in with the new: Arcc Offices refurbished its first serviced office in Singapore

It is designed with break out spaces that are ideal for a collaborative working environment.

by LEE ANNE BABIERRA
17 Aug 2015 | 1250 views

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Book a reliable cleaner in seconds with Helpling.

by MARIANNE ESTIOCO
22 Jun 2015 | 1071 views
 

WeInvest.net simplifies exploration of available investment opportunities

WeInvest.net simplifies exploration of available investment opportunities

It claims to be the world’s first platform allowing investors to take a peek into the restricted funds.

by LEE ANNE BABIERRA
7 Aug 2015 | 1070 views

Almac Group boosts APAC foothold, unveils first clinical packaging facility

Almac Group boosts APAC foothold, unveils first clinical packaging facility

It’s the first to complete the Health Sciences Authority inspection.

by LEE ANNE BABIERRA
5 Aug 2015 | 1035 views
 

Why you should never miss premium freebies from Grabz

Why you should never miss premium freebies from Grabz

This app also helps SMEs get noticed in the market.

by KRISANA GALLEZO-ESTAURA
21 Aug 2015 | 724 views

Asian corporates face tough balancing act as sustainability issues mount

Asian corporates face tough balancing act as sustainability issues mount

Discover the changing face of Asian CSR.

by MARIANNE ESTIOCO
1 Jul 2015 | 663 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter