Wilmar's Q3 net profit up 26% to $497m

Singapore palm oil producer Wilmar International reported a 26% rise in third-quarter net profit on Friday, with its oilseeds and grains business turning in a profit after two quarters of losses.

Wilmar, whose other businesses include sugar and edible oils, earned US$405.8 million ($497 million) for the three months ended September, up from US$321 million a year earlier and US$117 million in the previous quarter.

Wilmar’s third-quarter result beat the average net profit forecast of US$335 million, based on a Reuters poll of five analysts.

“Despite the uncertainties in the global economy, the group remains positive on its long-term prospects due to good economic growth in its main markets of China, India and Indonesia, continued increase in the production of palm oil in Indonesia, coupled with new projects developed in the past few years like oleochemicals, rice and flour milling,” chairman and CEO Kuok Khoon Hong said.

Wilmar, whose shares have fallen nearly 38% since the start of the year, is among the worst performers out of nearly 200 stocks worldwide in the large and midcap food products industry, Thomson Reuters StarMine data shows.