Wilmar says Q4 net profit up 18% to US$442m

Wilmar says Q4 net profit up 18% to US$442m

Tags: Wilmar | Wilmar International
Written by Thomson Reuters
Sunday, 28 February 2010 18:05


Wilmar International (WLIL.SI), the world’s largest palm oil producer, reported today a better-than-expected 18 percent rise in fourth quarter net profit as a global economic recovery drove commodities prices higher.

The company, which has a presence in 20 countries across Southeast Asia, China, India, Europe and Africa, said it would continue to seek attractive investment opportunities to support future growth.

Malaysia’s benchmark palm oil price (KPOc3) rose nearly 60% in the quarter compared with the previous year.

The firm derives about half of its total sales from China, and owns oil palm plantations and runs crushing and refining plants in Indonesia and Malaysia.

“We will persist with on-going efforts to further improve our operational efficiency through greater integration and economies of scale, and seek attractive investment opportunities to continue growing our group,” said Chief Executive Kuok Khoon Hong in a statement.

The company did not elaborate on its future investment plans, but it has previously said it was planning to invest at least US$1 billion ($1.4 billion) in Indonesia, China, and Africa.

Wilmar posted a net profit of US$442 million, up from US$373.6 million a year earlier, ahead analysts forecasts of US$333.5 million.

The quarterly results took the full year net profit to US$1.88 billion, higher than ThomsonReuters I/B/E/S estimates of US$1.65 billion.

On the outlook, Wilmar, which has a market capitalisation of $41.5 billion, said that although economic recovery appeared to have started, the global business environment is expected to be volatile.

However, the company said Asian economic activity would continue to remain robust, especially in China, India and Indonesia.

Wilmar’s shares have risen around 1% since the start of the year, outpacing a 5% drop in the broader Straits Times index (.FTSTI).

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