Wilmar-1H 2017: Revenue Driven By Higher Sales Volume From The Oilseeds & Grains
JAKARTA, SAWIT INDONESIA – Wilmar International Limited (“Wilmar” or “the Group”), Asia’s leading agribusiness group, reported revenue for the first semester of 2017 increased by 15,2% to US$21.16 billion compared to the same period of 2016. Revenue driven by higher sales volume from the Oilseeds & Grains and Sugar businesses, as well as stronger commodity prices.
Mr. Kuok Khoon Hong, Chairman and CEO, said, We expect Tropical Oils to perform better in 2H2017 on the back of improvements in production yields and better margins from downstream operations. Oilseeds crush margins are expected to remain positive for the rest of the year and Consumer Products will improve as it enters its seasonal peak period. However, Sugar will continue to be affected by the volatility in sugar prices.
“While the Group may face short term challenges, we remain very optimistic about the tremendous growth prospects of our various businesses and will continue with our expansion plans, especially in China, India and Indonesia.”
The improvement was driven by recovery in Oilseeds & Grains from the one-off losses in 2Q2016, but was partially offset by weaker performances in Tropical Oils and Sugar. Higher non-operating gains, arising from the Group’s investment securities, resulted in a net profit of US$60.2 million for the quarter (2Q2016: US$220.1 million loss).
Boosted by the strong performance in the first quarter of 2017, the Group reported core net profit for the half year ended June 30, 2017 (“1H2017”) of US$349.9 million (1H2016: US$2.2 million) and net profit of US$421.8 million (1H2016: US$19.3 million).
Correspondingly, EBITDA improved 66% to US$998.7 million (1H2016: US$600.1 million). Revenue increased 15% to US$21.17 billion (1H2016: US$18.37 billion).
Oilseeds & Grains (Manufacturing & Consumer Products) recovered from its oneoff loss in 2Q2016 and registered a pretax profit of US$61.1 million in 2Q2017 (2Q2016: US$343.8 million loss), benefiting from higher crush volume and positive crush margins. Sales volume for Oilseeds & Grains Manufacturing increased 13% to 6.7 million MT (2Q2016: 5.9 million MT) and grew 10% to 1.1 million MT for Consumer Products in 2Q2017 (2Q2016: 1.0 million MT).
Meanwhile, sales volume for Sugar increased 26% to 3.1 million MT from higher merchandising activities (2Q2016: 2.5 million MT).