MENU

10 Quick Things Investors Should Know About Wilmar International Limited’s Latest Earnings

In late February, Wilmar International Limited (SGX: F34) released its 2017 full year earnings update. As a quick introduction, Wilmar is an agricultural company that operates through four main segments: Tropical Oils, Oilseeds and Grains, Sugar, and Others.

Here are 10 things investors should know about Wilmar’s latest results:

1. Revenue for 2017 increased by 5.9% to US$43.85 billion.

2. But, gross profit for the year was down by 13.3% to US$3.48 billion.

3. Yet, EBITDA (earnings before interest, taxes, depreciation, and amortization) grew by 14.9% to US$2.58 billion.

4. Net profit attributable to shareholders for the whole of 2017 jumped by 25.4% to US$1.22 billion.

5. The agricultural giant’s gross margin declined from 9.7% in 2016 to 7.9%. Yet, its EBITDA margin increased from 5.4% to 5.9%.

6. Operating cash flow for 2017 was US$386.4 million, down from US$1.12 billion in 2016, mainly due to an increase in inventories and decrease in payables.

7. The company’s net debt grew from US$11.69 billion at end-2016 to US$12.60 billion at end-2017.

8. In 2017, the Tropical Oils segment reported a 7% increase in revenue to US$18.07 billion. The Oilseeds and Grains segment also did well during the year, with its revenue up by 11% to US$19.81 billion. The Sugar segment was the laggard, as its top-line fell by 14% to US$5.05 billion.

9. Wilmar proposed a final dividend of S$0.07 per share. Together with the interim dividend of S$0.03, the total dividend for 2017 was S$0.10. In 2016, the conglomerate’s dividend was S$ 0.065 per share.

10. In the latest earnings update, Kuok Khoon Hong, the Chairman and CEO of Wilmar, gave a short but useful statement on the company’s outlook:

“Our portfolio of high quality agribusiness enabled the Group to do well in 2017. Looking ahead, we expect our integrated business model to continue to achieve sustained growth. Barring unforeseen circumstances, performance in 2018 is expected to be satisfactory.”

Meanwhile, there are 28 surprising and important things we think every Singaporean investor should know—and we’ve laid them all out in The Motley Fool Singapore’s new e-book. Packed with information and insights, we believe this book will help you be a better, smarter investor. You can download the full e-book FREE of charge—simply click here now to claim your copy.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

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