November 14, 2008
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.