Wilmar International profits rise 10% to $608.4m in Q3

It sold off its discontinued operations in Brazil.

Agribusiness firm Wilmar International saw its net profit rose 10% YoY to $608.4m (US$447.1m) in Q3 from $552.34m (US$405.9m) in 2018, driven by stronger performance from its tropical oils and consumer products segments, an announcement revealed.

The firm also posted gains from the disposal of its discontinued operations in Brazil. Crushing operations also said to have performed better than expected. Profit growth was partially offset by lower contributions from associates and joint ventures.

Overall sales volume inched up 6% YoY, whilst revenue dipped 2% YoY to $15.19b (US$11.16b) in Q3 from $15.54b (US$11.42b). The revenue slump was blamed on lower commodity prices during the quarter.

Also read: Wilmar International's profit dropped 52.3% to $150.88m in Q2

As for the 9M period, the group hit core net profit of $1.15b (US$846.4m), down from $1.32b (US$968.5m) in 9M 2018. Overall sales volume during the same period grew 5%, whilst revenue slid 6% YoY to $42.71b (US$31.39b) from $45.33b (US$33.31b).

Wilmar’s tropical oils segment reported the fastest growth in pre-tax profit at 24% YoY to $262.9m (US$193.2m) in Q3, boosted by strong performance from the manufacturing and merchandising business, including oleochemicals. It also saw higher sales volume and improved processing margins during the quarter, but was partially offset by lower crude palm oil (CPO) prices and production yields, reducing contributions from the plantations business.

The oilseeds & grains registered a 1% YoY increase in pretax profit to $410m (US$301.3m) over the same period, mainly due to good performances by both manufacturing and consumer products. The group’s sugar operations saw its pre-tax profit edge up 9% YoY to $109m (US$80.1m) in Q3, supported by its sugar refineries.

On the other hand, the others segment recorded a pre-tax loss of $28.17m (US$20.7m) in Q3, no thanks to mark-to-market losses from the group’s investment portfolio and corporate costs. Wilmar’s joint ventures & associates also posted lower contributions at $33.75m (US$24.8m) from $90.36m (US$66.4m) because of weaker performance from the group’s investments in Africa, India and Vietnam.