Wilmar International sinks deeply into the red to the tune of S$295 million as soybean buys went awry

Cooking oil from the palm-oil group, Wilmar International.
Cooking oil from the palm-oil group, Wilmar International. PHOTO: WILMAR

SINGAPORE - Agri-business group Wilmar International fell deeply into the red for the second quarter, with a net loss of US$220.1 million (S$295 million) against a profit of US$193.2 million in the same period last year.

The loss was largely due to the manufacturing business within oilseeds and grains, which was a result of untimely purchases of soybeans during the quarter.

In addition, the sugar business also turned in a weaker performance due to unfavourable weather conditions and mark-to-market losses on sugar hedges.

In contrast, the tropical oils business continued to perform favourably, the company said in a statement.

Revenue for the three months to June 30 inched up 0.9 per cent to US$9.37 billion.

Loss per share amounted to 3.5 US cents against earnings of three US cents previously while net asset value per share eased to 222.5 US cents compared to 228 US cents as at Dec 31.

The company will pay an unchanged interim dividend of 2.5 Singapore cents a share.

Mr Kuok Khoon Hong, chairman and chief executive, said: "Notwithstanding the one-time loss in the second quarter, the group's integrated agribusiness model remains intact and resilient.

"The group continues to execute on its stated growth strategy with emphasis on downstream businesses and focusing on high growth Asian and African markets.

Recent developments in joint ventures in Vietnam and India strengthen the long-term prospects in these countries," he noted.

Barring unforeseen circumstances, Wilmar's performance for the rest of the year is expected to be satisfactory.