Wilmar

Wilmar: Announced 4Q11 results which were below expectations on a qoq basis, although FY11 results came in-line with expectations. Rev at US$11.5b, +26.7% yoy and -12.2% qoq, while net profit at US$500m, +56.9% yoy and +55.8% qoq, however Core net profit at US$264.5m, +216.8% yoy but -40.2% qoq. Result brings FY11 results to US$44.7b, +47.2% yoy and core net profit to US$1.5b, +44% yoy.

Improvement in YOY net profit was largely due to better performances in grp’s Oilseeds & Grains segment and also contributions from grp’s new Sugar segment as well as a sharp improvement from associates.

Palm & Laurics recorded an 8% decline in sales vol to 5.3m MT due to weaker demand from EU and India, while Consumer Products +14% increase in sales vol to 1.2m due to improved sales of consumer pack oils, flour and rice in China, but margins were lower vs 4Q10 as price increase lower than the increase in cost of edible oils feedstock. Others segments saw a decline of 59% in pretax profit to US$24.7m due to decrease in gains from investments, lower fertiliser profit as well as lower shipping profits.

Going forward, grp tip its healthy balance sheet, improved range of downstream product offerings, strong infrastructure in Asian countries and further expansion in Africa, leaving it well positioned to capture emerging markets growth as well as other agri-related expansion opportunities which might arise.

Separately, grp also announced the signing of a MOU with Commodities giant Archer Daniels, indicating their intent to work together in a strategic partnership in global fertilizer purchasing and distribution, global ocean freight operations, and tropical oils refining in Europe. Collaborations between ADM and Wilmar began in the mid-1990s, when they jointly built a network of soybean processing operations in China. Today, ADM owns a 16% equity stake in Wilmar.

Grp has declared an interim div of $0.031/share, bringing FY11 results to $0.061/share or 1.04% yield.