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November 14, 2008

                            
Net profit grows 60 percent on-year for Thailand's TVO
                          

 

TVO, Southeast Asia's largest soy oil producer, announced a 3Q08 net profit of THB477 million (THB0.76/share) for growth of 60 percent on-year.

 

The company booked impairment on inventory of THB100 million after soy meal and soy prices fell and they booked a forex gain of THB4.45 million.

 

Sales increased 38 percent on year to THB6.6 billion and more than expected due to soy oil and soy meal sales volume rising. However, soy costs jumped also. The gross margin sadly narrowed to 12.8 percent from last quarter at 16.1 percent. For the 9M08, TVO generated a net profit of THB1,670 million (THB2.67/share) an increase of 136 percent on-year.

 

The fourth quarter outlook is not bright owing to imported soy meal price dumping in the domestic market. Margins on soy meal are expected to drop. Moreover, soy oil prices are trending to decrease following palm oil prices.

 

For 2009, TVO has concerns on soy meal demand that is expected to decline due to the global economic recession. Therefore, 2008 and 2009 normalised profit of THB1,937 million (THB3.18/share) are revised down for growth of 51 percent and THB1,385 million (THB2.05/share), respectively.
                        
THB1 = US$0.0285 (November 14, 2008)
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