2 Companies That Have Reported Positive Performances Recently

In the latest earning seasons, we saw both the winners and the losers amid the challenging economic conditions.

As is common with every earnings season, there will be some companies posting growth, some posting mixed numbers, and some experiencing declines.

We will look at two companies that have delivered positive performances.

SBS Transit Ltd (SGX: S61) is one of the few that have reported good performance recently.

As a quick background, SBS Transit operates public bus and rail services in Singapore. It operates mainly in two segments: Public Transport Services (the bus and rail services) and Other Commercial Services (advertising and rental income).

SBS Transit is also a subsidiary of the local land transport giant, ComfortDelGro Corporation Ltd (SGX: C52)

Overall, the company delivered a very strong performance, resulting in higher revenue and net profit. The improvement was due to “contribution from bus services with the transition to the Bus Contracting Model (BCM) and higher ridership from rail services, offset by lower average rail fare from the fare reduction effective 30 December 2016”.

In terms of financials, quarterly revenue improved 7.0% year-on-year to $287.8 million. Furthermore, profit attributable to shareholders improved 75.3% to $12.7 million. As a result, earnings per share (EPS) spiked from 2.34 cents last year to 4.09 cents this quarter.

For more information about the latest result, please click here for the article written by my colleague, Chin Hui Leong.

Wilmar International Limited (SGX: F34) is the next company that has reported good performance recently.

As a quick summary of the business, Wilmar is an agricultural company that operates through four main segments: Tropical Oils, Oilseeds and Grains, Sugar, and Others.

Overall, Wilmar’s revenue rose from gains in tropical oils, oilseeds and grains, and sugar. However, profit before tax (PBT) for tropical oils and sugar suffered declined whilst gains in the oilseeds and grains segment made up for the losses in the previous two segments.

In term of financials, revenue improved 13.2% year-on-year to US$10.6 billion. Similarly, profit attributable to shareholders surged from a loss of US$220.1 million to a profit of US$60.2 million this quarter.

For its outlook, Wilmar’s Chairman and Chief Executive Officer, Kuok Khoon Hong, said the following:

“We expect Tropical Oils to perform better in 2H2017 on the back of improvements in production yields and better margins from downstream operations. Oilseeds crush margins are expected to remain positive for the rest of the year and Consumer Products will improve as it enters its seasonal peak period. However, Sugar will continue to be affected by the volatility in sugar prices.

While the Group may face short term challenges, we remain very optimistic about the tremendous growth prospects of our various businesses and will continue with our expansion plans, especially in China, India and Indonesia.”

For more information about the latest result, please click here for the article written by my colleague, Chin Hui Leong.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of SBS Transit Ltd. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.