PPB Group Bhd's associate Wilmar Q4 profit rises 70%

This picture taken on February 14, 2017 shows palm oil seeds in Kendawangan, West Kalimantan. Edible vegetable oil is a key ingredient in many everyday goods, from biscuits to shampoo and make-up, and growing demand has led to a boom in the palm oil industry in Indonesia, which is the world's top producer of the commodity. The palm oil industry has been repeatedly accused over the years of failing to protect workers' rights and tearing down protected rainforest to make way for plantations, prompting many companies to pledge greater efforts to improve working conditions and halt deforestation. / AFP PHOTO / Adek BERRY

SINGAPORE: Singapore’s Wilmar International Ltd, the world’s largest palm oil processor, said its fourth-quarter net profit rose 70%, thanks to stronger results across its businesses, particularly its tropical oils and sugar segments.

Wilmar, one of the biggest soybean buyers, reported a net profit of US$560.8mil (RM2.5bil) for the three months ended December, compared with a net profit of US$330.2mil (RM1.47bil) a year earlier.

Fourth-quarter core net profit, which excludes non-operating items, rose 70% to US$589.5mil (RM2.63bil). Revenue at Wilmar, which counts US agricultural products trader Archer Daniels Midland Co among its shareholders, was up 26.7%.

However, Wilmar’s 2016 annual net profit fell 5% to US$972.2mil (RM4.33bil), its smallest in nine years, due to untimely purchases of soybeans which led to a loss in the second quarter.

In the fourth quarter, pretax profit at the company’s tropical oils segment rose 94% to US$184.3mil (RM821.61mil), led by its plantation business which benefited from higher crude palm oil prices. Its oilseeds and grains segment recorded a profit before tax of US$177.9mil (RM793.08mil), an 8% increase.

Pre-tax profit at the sugar business rose 68% to US$135.9mil (RM605.84mil).

“Barring unforeseen circumstances, performance in 2017 is expected to be satisfactory,” chairman and CEO Kuok Khoon Hong said in a statement. - Reuters