Singapore-headquartered agribusiness group Wilmar International has finished the second quarter of 2017 with US$60.2M in profits, boosted by the company’s oilseeds and grains segment.
Ending the quarter in profit was all the more significant for the company as, during the same period in 2016, it finished with a US$220.1M in losses, World-Grain wrote on 10 August.
Revenue for the quarter was US$10.599bn, which marked a 13.2% increase from US$9.367bn in 2016 during the same period.
Wilmar attributed the year-on-year improvement to the recovery of its oilseeds and grains segment from the “one-off losses” in the same 2016 quarter, but the recovery was partially offset by weaker tropical oils and sugar.
“We expect tropical oils to perform better in the second half of 2017 on the back of improvements in production yields and better margins from downstream operations,” Wilmar chair and CEO Kuok Khoon Hong told World Grains.
“Oilseed 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. Sugar will continue to be affected by the volatility in sugar prices,” Hong projected.
The oilseeds and grains segment registered a pre-tax profit of US$61.1M, compared to a loss US$343.8M year-on-year, with sales volume increasing 13% to 6.7M tonnes against 5.9M tonnes in 2016.
“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,” Hong said.