Wilmar's earnings plunge 29% to US$778.7m

Sour gains, measly revenue growth.

According to a release, Wilmar International Limited, Asia’s leading agribusiness group, posted a 26% increase in net profit to US$405.8 million for the quarter ended September 30, 2012.

Most key segments reported higher profits during the quarter with the exception of Oilseeds & Grains and Plantations & Palm Oil Mills. Despite the lower profit in Oilseeds & Grains compared to 3Q2011, the segment recorded its first quarterly profit for the year, reducing the losses in the first half of 2012.

Revenue was down 6% to US$12.35 billion in 3Q2012 mainly due to lower palm prices for Palm & Laurics.

The Group’s net profit for the nine months ended September 30, 2012 (“9M2012”) declined 29% to US$778.7 million while revenue increased 2% to US$33.84 billion.

Excluding non-operating items, net profit was US$388.0 million in 3Q2012 and US$766.0 million in 9M2012, compared to US$451.4 million in 3Q2011 and US$1.30
billion in 9M2011.

The non-operating items comprise foreign exchange differences from intercompany loans to subsidiaries, gains or losses from investment securities, fair value changes on embedded derivatives of the Group’s convertible bonds, interest expense on borrowings which are directly attributable to the funding of the Sucrogen acquisition and an accounting profit within the Sugar segment relating to pre-acquisition hedging reserves.