Wilmar

Wilmar: Results below expectations.1Q rev at US$10.5b -9.8% yoy -9.1% qoq with net profit at US$255.9m -33.8% yoy -48.9% qoq. This was lower mainly on lower Oilseeds and Grains margins, the segment recorded a loss of US$52.5m compared to a gain of US$1.7m. The segment has been noticeably been underperforming recently. The loss was attributed to poor timing and partly due to poor crush margins. Volumes generally improved across all business segments attributed to consumption growth and mkt share gains but ASPs were generally lower due to a fall in agri-comm prices. In Palm and Laurics, volume grew by 20.4% and margins improved slightly as co maximized capacity to benefit from the Indonesia export duty structure favouring domestic refiners with profit before tax at US$234.9m For Plantation and Palm Oil, rev was up 9.3% yoy on increased CPO production and higher prices partially offset by higher fertilizer costs. Sugar also reported a pretax loss of US$47.9m compared to 4Q11 gain of $98.4m. Co highlighted seasonality factors and opined that for first two quarters for Australia, maintenance of milling takes place and is common to incur losses. Net gearing increased to 1.08x compared to 0.97x during end-Dec 2011