Wilmar’s 25% increase in net profit, pushed higher by oilseeds and grains

SINGAPORE – Asia’s leading agribusiness group, Wilmar International’s profits have jumped to US$1.2 billion, 25% up from US$972.2 million in the same period in 2016, thanks to strong performance in the oilseeds and grains sector.

The revenue for the year improved by 5.9% to US$43.84 billion; attributed by its wide portfolio of high quality agri-products.

High revenues were driven by triple pre-tax profit in Oilseeds & Grains to US$735 million together with 13% increase in overall sales volume to 33.3 million tonnes in 2017.

Wilmar reaped good revenues from joint ventures and associates in China, India and Africa in Oilseeds and grains which were offset by weaker results in the tropical oils and sugar businesses.

According to Wilmar, strong results in the segment were as a result of good crush margins and higher sales although the improvement was partially offset by lower consumer products sales in the fourth quarter of 2017.

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In its quarter Q4 2017 results, revenue fell 3.3% to US$11.55 billion primarily due to lower sales volume and weaker average selling prices.

Also, lower achievement in the fourth quarter results was allegedly due to challenging conditions in Wilmar International’s tropical oils and sugar segments.

Wilmar expressed commitment to deliver on its strategy by building on sustainable growth in Africa and Asia though ventures and associates.

In Malaysia, Wilmar through its fully-owned subsidiary, Wilmar Kuantan Edible Oils entered an agreement with Cargill Palm Plantation to purchase Cargill’s edible oil facilities including a palm oil refinery and a neighbouring storage facility.

The transfer of ownership is expected to occur by the end of 2018.

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“We continue to work on the proposed listing of our China operations, with the internal restructuring of the operations largely completed,” said Kuok Khoon Hong, chairman and chief executive officer (CEO) of Wilmar.

“As the proposed listing is still at the evaluation stage, shareholders are advised to exercise caution in trading their shares.

There is no certainty or assurance as at the date of this announcement that the listing proposal will be carried out.”

To expand its presence in Asia, the company signed the Indonesia Palm Oil Pledge to drive the palm oil industry towards sustainable palm oil production practices.

Wilmar looks forward to a satisfactory performance in 2018 and it expect the integrated business model to continue to achieve sustained growth.

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