Mewah

Mewah: Dismal 2Q13 results which was largely in-line with bearish estimates, as revenue at $707.3m, -30% y/y and net profit at $4.1m, -35% y/y. The poor results was due to lower sales volume and lower average selling prices during the qtr, which saw total sales vol decrease 5% to 849,100 mt. Palm oil prices remained low during the quarter resulting in weaker demand, particularly from Middle East for the grp’s Bulk segment products. Consumer Pack segment faired better, registering a 33% y/y growth in sales volume due to improvement in destination demand Going forward, in view of current macroeconomic factors, weak destination demand, low palm oil prices and bearish outlook for the palm oil industry, Mewah remains cautious on its outlook in the near term and will continue to focus on consolidating its position by investing in additional refining capacity and a dairy plant in Malaysia.