Wilmar plummets into the red with $296m net loss in Q2

“Untimely purchases” of soybean battered profits.

Wilmar International Limited (WIL) has plunged into the red, as profits shriveled into a US$220.1m ($259.56m) net loss in Q2.

According to a report by OCBC, WIL chalked the loss up to "untimely purchases" of soybean for its manufacturing business within Oilseeds & Grains.

On top of this, WIL’s Sugar business churned out a weaker performance due to unfavourable weather conditions and mark-to-market losses on sugar hedges.

For the half-year, core earnings came in at a measly US$2.2m ($2.96m), while reported net profit after tax crashed by a glaring 95.5% to US$19.3m ($25.96m).

WIL remains upbeat though, as it maintained its interim dividend of $0.025/share, payable on 30 August. The business also anticipates a better H2.

“Notwithstanding the one-time loss in 2Q16 and barring unforeseen circumstances, WIL believes that its 2H16 performance will be "satisfactory", citing the resilience of its integrated agribusiness model,” OCBC stated.