Boosted by a rise in commodity prices, Wilmar International reported a 70% surge in its core net profit to US$589.5 million for the fourth quarter 2016, according to the latest report from the firm.
These stronger profits were driven by better performance across all segments of the business, as well as one-off tax recognition from the company’s Indonesian operations.
Pre-tax profits at the tropical oils segment jumped 94% to US$184.3 million in 4Q2016 due to higher crude palm oil prices as well as stronger oil yields, which offset lower palm fruit production due to replanting at the company’s plantations.
Elsewhere, things could not have looked sweeter in the sugar sector. Stronger sugar prices as well as the prolonged season for milling activities led to higher volumes of cane being crushed, allowing the company to record a 68% increase in pre-tax profit to US$135.9 million in the last quarter.
The firm was also aided by the recognition of deferred tax assets of US$142.1 million for the Group’s Indonesian operation.
The company forecasted a satisfactory performance for 2017 and remains bullish on China. China announced plans to relax restrictions on foreign investments in January according to news sources.
“The recent lifting of restrictions in China on oilseeds and grains processing on foreign companies is expected to benefit our operations”, said Mr Kuok Khoon Hong, Chairman and CEO of Wilmar.