August 11, 2014

Wilmar Q2 profit drops despite higher sales of oilseeds, grains 

Wilmar International Limited, Asia's leading agribusiness group, posted net profit of US$170.7 million for the second quarter of 2014, a drop of 22% on-year.

Excluding non-operating items, the group's net profit plummeted 34% to US$163.1 million in Q2. The group's revenue increased marginally to US$10.52 billion in Q2, as higher sales volume in Oilseeds & Grains and higher palm prices were offset by lower sales volume in Sugar.

Wilmar says that the decline in net profit was mainly due to the margin contraction in Palm & Laurics unit and losses from associates. Though Oilseeds & Grains unit recovered from losses in Q1, profit was lower compared to a year ago. However, Products and Plantations & Palm Oil Mills extended its strong performance.

The group's net profit for the first half of 2014 plunged 38% to US$332.5 million, despite a small increase in revenue, which totalled US$20.79 billion.