WILMAR INTERNATIONAL LIMITED
- Core net profit up 17% to US$412 million in 4Q2014.
- Palm & Laurics supported by margin enhancement from downstream products
- Improved performance in Sugar and Consumer Products
- Oilseeds & Grains contributed positively
- Plantations & Palm Oil Mills down on lower price and volume
- Total dividend of S$0.075, representing a dividend payout of over 30% for
In US$ million | 4Q2014 | 4Q2013 | Change | FY2014 | FY2013 | Change |
Revenue | 10,777.7 | 11,621.6 | -7.3% | 43,084.9 | 44,085.0 | -2.3% |
Profit before taxation | 542.0 | 510.2 | 6.2% | 1,537.6 | 1,775.5 | -13.4% |
Net profit | 401.2 | 369.1 | 8.7% | 1,156.2 | 1,318.9 | -12.3% |
Core net profit | 412.5 | 352.9 | 16.9% | 1,219.9 | 1,302.9 | -6.4% |
Earnings per share (US cents)* | 6.3 | 5.8 | 8.6% | 18.1 | 20.6 | -12.1% |
* fully diluted
Singapore, February 12, 2015 - Wilmar International Limited ("Wilmar" or "the Group"), Asia's leading agribusiness group, reported a 9% increase in net profit to US$401.2 million for the quarter ended 31 December, 2014 ("4Q2014"). Core net profit (i.e. excluding non-operating items and fair value changes of biological assets) grew 17% to US$412.5 million in 4Q2014.
The higher net profit was due to improved performances in most key segments as well as higher contributions from associates. Palm & Laurics benefited from higher returns
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from its downstream business. Consumer Products, Sugar and Oilseeds & Grains also contributed positively to net profit. Plantations & Palm Oil Mills was affected by lower production and softer crude palm oil ("CPO") prices.
The Group's net profit for the year ended December 31, 2014 ("FY2014") was US$1.16 billion, a decrease of 12% from FY2013. The Group's core net profit from operations declined 6% to US$1.22 billion. The lower profit for the year was primarily due to margin contraction in Palm & Laurics during the first nine months of 2014 as well as lower soybean crushing margins.
4Q2014, due to margin expansion during the quarter. For FY2014, pre-tax profit grew a healthy 19% to US$261.8 million. During the year, sales volume was up 4% to 5.6 million MT, given stronger demand for the Group's flour and rice products and overall strong growth outside China.
Plantations & Palm Oil Mills registered an 11% decline in pre-tax profit to US$77.2 million in 4Q201 due to lower production and softer CPO prices in late 2014. Productionyield dropped 5% to 5.2 MT per hectare due to unfavourable weather conditions in
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Kalimantan and parts of Sumatra, Indonesia. Total fresh fruit bunches (FFB) production fell 7% to 1.1 million MT in 4Q2014. For FY2014, pre-tax profits surged 41% to US$381.1 million due to higher production yield, depreciation in regional currencies and lower manuring cost. Yield improved 10% to 20.6 MT per hectare and total FFB production increased 7% to 4.3 million MT in FY2014.
Sugar increased its pre-tax profit by US$34.3 million to US$53.6 million in 4Q2014, with higher profit contribution from both the Milling as well as the Merchandising & Processing businesses. For FY2014, pre-tax profit increased 6% to US$134.4 million.
Sugar (Milling) recorded a pre-tax profit of US$21.3 million in 4Q2014 compared to a pre-tax loss of US$1.1 million in 4Q2013. The extended crushing season in Australia, due to the higher rainfall in early 3Q2014, resulted in more sugar cane being harvested in 4Q2014. The pre-tax loss of US$13.7 million for FY2014 was due to the lower prices and negative mark-to-market effects of ongoing sugar hedges as well as the inclusion of the Myanmar milling operations which commenced crushing in late December 2014.
Sugar (Merchandising and Processing) performed well as pre-tax profit grew 58% to US$32.4 million in 4Q2014 and 37% to US$148.1 million in FY2014 on the back of volume growth. Volumes grew 59% to 2.0 million MT in 4Q2014 and 16% to 6.6 million MT in FY2014.
4Q2014 were not sufficient to offset lower contributions in the first nine months of 2014,
resulting in a lower gain of US$80.7 million for FY2014 (FY2013: US$103.8 million).
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DividendThe Board has proposed a final tax exempt (one-tier) dividend of S$0.055 per share. Including the interim dividend of S$0.020 per share paid in September 2014, the total dividend paid and proposed for FY2014 is S$0.075 per share, representing a dividend payout of more than 30%.
Strong Balance Sheet and Cash Flows
As at December 31, 2014, total assets stood at US$43.56 billion while shareholders' funds amounted to US$15.49 billion. Net cash flows from operating activities increased by 22% year-on-year to US$1.97 billion. Net gearing ratio improved to 0.78x from
0.83x as at December 31, 2013.
Mr. Kuok Khoon Hong, Chairman and CEO of Wilmar said, "While lower palm, crude oil and sugar prices will negatively impact our plantation, palm biodiesel and sugar milling segments, our processing and downstream businesses should benefit from lower feedstock costs, providing a further boost to the trend of stable volume growth and margin expansion experienced in our downstream businesses these past few years. Our biodiesel business should benefit from the recently announced biodiesel policy in Indonesia. As a whole, our integrated business model should enable stable and
resilient earnings in 2015."
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About Wilmar
Wilmar International Limited, founded in 1991 and headquartered in Singapore, is today Asia's leading agribusiness group. Wilmar is ranked amongst the largest listed companies by market capitalisation on the Singapore Exchange.
Wilmar's business activities include oil palm cultivation, oilseed crushing, edible oil refining, sugar milling and refining, specialty fat, oleochemical, biodiesel and fertiliser manufacturing and grain processing. At the core of Wilmar's strategy is a resilient integrated agribusiness model that encompasses the entire value chain of the agricultural commodity processing business, from origination and processing to branding, merchandising and distribution of a wide range of agricultural products. It has over 450 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries. The Group is backed by a multinational workforce of about 92,000 people.
Wilmar's portfolio of high quality processed agricultural products is the preferred choice of the food manufacturing industry, as well as the industrial and consumer food businesses. Its consumer-packed products occupy a leading share in its targeted markets. Through scale, integration and the logistical advantages of its business model, Wilmar is able to extract margins at every step of the value chain, thereby reaping operational synergies and cost efficiencies. Wilmar remains a firm advocate of
sustainable growth and is committed to its role as a responsible corporate citizen.
ISSUED BY : Wilmar International Limited
CONTACT : Ms LIM Li Chuen (Investor Relations)/
Ms Iris CHAN (Corporate Communications) DURING OFFICE HOURS : +(65) 6507-0592 / +(65) 6216-0870
EMAIL : lim.lichuen@wilmar.com.sg/ iris.chan@wilmar.com.sg
February 12, 2015
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