SINGAPORE (Nov 12): Wilmar International, Asia’s leading agribusiness group, reported a 10% y-o-y increase in 3Q19 earnings ended Sept to US$447.1 million ($608 million).
3Q19 revenue came in 2.2% lower at US$11.2 billion from a year ago due to lower commodity prices.
Wilmar says the stronger bottomline was driven by better results in tropical oils and consumer products as well as the recognition of a gain from the disposal of the group’s discontinued operations in Brazil.
Excluding gains from discontinued operations and non-operating items, core net profit for the quarter would be 3% lower at US$419.2 million.
In the third quarter under review, tropical oils reported a 24% y-o-y increase in pretax profit to US$193.2 million in 3Q19, boosted by stronger performance from the manufacturing and merchandising business, including oleochemicals.
Oilseeds & grains registered a 1% increase in pretax profit to US$301.3 million in 3Q19 mainly due to good performances by both manufacturing and consumer products.
Sugar reported a 9% increase in pretax profit to US$80.1 million in 3Q19 driven by stronger performance from sugar refineries.
Pretax loss for the others segment widened to US$20.7 million in 3Q19, mainly due to mark-to-market losses from the group’s investment portfolio and corporate costs.
Joint ventures & associates recorded lower contributions of US$24.8 million in 3Q19 compared to US$66.4 million in 3Q18, mainly due to weaker performance from the group’s investments in Africa, India and Vietnam.
As at end September, total assets stood at US$43.98 billion while shareholders’ funds was US$16.12 billion.
Net debt decreased by US$1.73 billion to US$11.74 billion on the back of strong operating cash flows. Correspondingly, net gearing ratio improved to 0.73x.
Wilmar’s Kuok Khoon Hong, Chairman and CEO, says, “Despite the challenging operating environment, we performed well because of our integrated and diversified business model. Our operations in most countries also did well in 3Q19. Barring unforeseen circumstances, we expect to do reasonably well in 4Q19.”
Year to date, shares in Wilmar are up 23% to close at $3.85 on Tuesday before the results announcement.
