3 reasons behind Wilmar's disappointing Q2 results

Find out why Wilmar's 2Q12 profit fell 55%.

Here's more from CIMB:

All divisions with the exceptions of the palm and laurics as well as consumer products segments posted weaker earnings. As a result, 2Q12 core net profit (excluding non-operating items) fell 55% yoy.

The key disappointments in 2Q were (1) losses for its soybean crushing business, (2) weaker FFB output from its estates in East Malaysia, and (3) higher losses for its sugar division due to higher maintenance costs.

The group posted strong volume growth in all its key divisions with the exception of its oilseeds and grains business.  Sales volume for its oilseeds and grains margin fell 1% yoy in 2Q as the group elected to crush less soybeans in view of the negative margins.