13 August 2010 11:41 [Source: ICIS news]
SINGAPORE (ICIS)--Wilmar International Ltd's second-quarter net profit declined 15.4% year on year to $344.5m (€268.7m) as margins were lower and its convertible bonds had a negative change in valuation of $41.7m, the Singapore-listed crude palm oil (CPO) producer said on Friday.
Sales for the period jumped 18.3% to $6.76bn as a result of strong sales volumes and higher prices, with net profit excluding non-operating items growing 12.8% to $380.3m, the company said in a statement.
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Wilmar's plantations and palm oil mills segment, however, saw a 24% year-on-year fall in pre-tax profit to $76.6m due to lower CPO prices and higher production costs in the June quarter, it said.
“Yield dropped 10% to 4.51 tonnes per hectare in the second quarter as a result of lower yield of newly matured hectarage and wet weather in most parts of
For the first half of the year, Wilmar had a 5.2% decline in net profit to $745.9m even as sales surged 27% to $13.52bn, it said.
Net profit excluding non-operating items for the six-month period was up 8.8% at $772.1m, it said.
“The group is positive on the prospects of Asian economies, especially
Wilmar said it was planning a major expansion into sugar to boost its long-term profitability, with the proposed acquisition of Sucrogen Ltd and the development of sugar production in
In a separate statement, the company said it is in discussions to take a minority stake in fellow CPO producer Kencana Agri Ltd of
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