Wilmar's Q1 net profit up 3.2% on improved gross profit margin
WILMAR International's first quarter profit grew 3.2 per cent despite a drop in revenue, as cost of sales fell even more.
The palm oil processor recorded net profit of US$239.4 million for the three months ended March 31, up from US$232 million a year ago. This translates into earnings of 3.8 US cents per share, up from 3.6 US cents the same period last year.
Revenue slipped 4.3 per cent to US$9 billion on lower commodity prices.
Looking ahead, the company said it expects higher crude palm oil prices to benefit its plantation business, but at the same time, the higher feedstock costs will lead to lower margins in its downstream businesses.
It also expects its consumer products division to achieve "healthy growth", although crush margins will come under pressure due to an excessive amount of soybean being shipped into China in the coming months.
"Operating conditions in the second quarter are expected to be challenging," said Wilmar CEO and chairman Kuok Khoon Hong.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
UK's FTSE 100 hits record highs on Anglo-American boost
Holiday Inn owner IHG’s Q1 revenue up 2.6%, leisure travel demand remains strong
SocGen Q1 profit slumps less than expected as investment bank surprises
Wall Street Journal moves Asia headquarters from Hong Kong to Singapore
Macquarie sees biggest profit dip in 15 years on commodities downturn
HSBC appoints ex-Citi banker as new Singapore head of global banking