AGRIBUSINESS giant Wilmar International : F34 0% saw its net profit climb 17.8 per cent to US$530.3 million for the first quarter ended March, on the back of firm palm oil prices.

Core net profit – excluding non-operating gains recorded from the group’s investment portfolio – rose 18.8 per cent to US$503.4 million during the quarter.

Q1 revenue was 23.2 per cent higher at US$17.6 billion, compared to US$14.3 billion in the year-ago period.

“The robust set of results was achieved on the back of strong performance in the Plantation and Sugar Milling segment,” Wilmar said in a bourse filing on Friday (Apr 29).

The increase was partially offset by a decline in its Feed and Industrial Products segment, which was affected by weak crush margins in China.

Wilmar said this was due to the “sudden and sharp increase” in soybean prices as well as lower meal demand as a result of poor poultry and pig farming margins.

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Demand for consumer pack oil also fell, largely attributed to the recent outbreak of Covid-19 cases in China and the slowdown in its economy.

Share of results of joint ventures and associates was also lower in Q1, mainly due to weaker contributions from China and Europe.

“Our performance for the quarter was satisfactory given the tough operating environment,” the group said. “Despite the tough environment, we are cautiously optimistic that performance for the rest of the year will be satisfactory.”

Shares of Wilmar closed S$0.08 or 1.8 per cent higher at S$4.44 on Friday, before the announcement.