Wilmar's Q1 net beats forecast, upbeat on Asia
2010/05/13
SINGAPORE: Wilmar International, the world's largest listed palm oil firm, said it is positive on growth in Asian markets such as China and Indonesia after posting a better-than-expected 6 per cent rise in first quarter profits.
Wilmar, whose operations span from palm oil plantations in Malaysia to processing plants for soya and rice in China, generates around half of its revenue from China and is expected to benefit from strong Asian consumer demand growth.
"The group is positive on the prospects of Asian economies, especially China, India and Indonesia, and will continue to leverage on its well-established presence in these markets for growth," said Wilmar chairman and chief executive officer Kuok Khoon Hong.
Wilmar said late last year it wanted to invest at least US$1 billion in Indonesia, China and Africa, including starting up a sugar plantation in Indonesia, the world's fourth most populous country, this year.
The company, which has a market value of US$30 billion (US$1 = RM3.22), earned US$401 million in January-March, up from US$380 million made a year ago. The earnings were higher than the average forecast of US$385 million provided by three analysts surveyed by Reuters.
The profit rise was the smallest in years after Wilmar's string of double-digit earnings gains even during the financial crisis.
Its first quarter revenue climbed 36 per cent to US$6.8 billion.
The company said its palm and laurics business recorded a 30 per cent drop in pre-tax profit, despite a 29 per cent rise in sales volume, as margins fell due to tight supply and relatively less competitive pricing of palm oil compared to other edible oils.
Its oilseeds and grains business also recorded slightly lower margins but registered an 8 per cent rise in pre-tax profit as sales volumes rose by 12 per cent.
Wilmar's integrated China operations account for 44.7 per cent of its US$10.3 billion assets, and it competes with China Agri Industries and China Foods in a market with more than 1 billion people.
It also has plantation assets in Southeast Asia, competing with regional players such as Malaysia's Sime Darby, IOI Group and Indonesia's Astra Agro Lestari.
Malaysia's benchmark palm oil price declined by nearly 6 per cent since the start of the year, after soaring 57 per cent in 2009 as the global economy started to recover from the recession.
Wilmar shares have risen 1.7 per cent since the start of the year, outperforming a 1.4 per cent fall in the Singapore's Straits Times Index. - Reuters
Wilmar, whose operations span from palm oil plantations in Malaysia to processing plants for soya and rice in China, generates around half of its revenue from China and is expected to benefit from strong Asian consumer demand growth.
"The group is positive on the prospects of Asian economies, especially China, India and Indonesia, and will continue to leverage on its well-established presence in these markets for growth," said Wilmar chairman and chief executive officer Kuok Khoon Hong.
Wilmar said late last year it wanted to invest at least US$1 billion in Indonesia, China and Africa, including starting up a sugar plantation in Indonesia, the world's fourth most populous country, this year.
The company, which has a market value of US$30 billion (US$1 = RM3.22), earned US$401 million in January-March, up from US$380 million made a year ago. The earnings were higher than the average forecast of US$385 million provided by three analysts surveyed by Reuters.
The profit rise was the smallest in years after Wilmar's string of double-digit earnings gains even during the financial crisis.
Its first quarter revenue climbed 36 per cent to US$6.8 billion.
The company said its palm and laurics business recorded a 30 per cent drop in pre-tax profit, despite a 29 per cent rise in sales volume, as margins fell due to tight supply and relatively less competitive pricing of palm oil compared to other edible oils.
Its oilseeds and grains business also recorded slightly lower margins but registered an 8 per cent rise in pre-tax profit as sales volumes rose by 12 per cent.
Wilmar's integrated China operations account for 44.7 per cent of its US$10.3 billion assets, and it competes with China Agri Industries and China Foods in a market with more than 1 billion people.
It also has plantation assets in Southeast Asia, competing with regional players such as Malaysia's Sime Darby, IOI Group and Indonesia's Astra Agro Lestari.
Malaysia's benchmark palm oil price declined by nearly 6 per cent since the start of the year, after soaring 57 per cent in 2009 as the global economy started to recover from the recession.
Wilmar shares have risen 1.7 per cent since the start of the year, outperforming a 1.4 per cent fall in the Singapore's Straits Times Index. - Reuters
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