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How Did The Oilseeds and Grains Business Of Wilmar International Limited Fare In 2017?

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 has four business segments: Tropical Oils; Oilseeds and Grains; Sugar; and Others.

Given the complexity of Wilmar’s business, it may be useful for investors to have a look at each segment individually.

In previous articles, I had discussed the Tropical Oils and Sugar segments. In this article, I will have a quick review of the business performance of the Oilseeds and Grains segment in 2017.

The following table shows the revenue and profit numbers that the Oilseeds and Grains segment delivered for the fourth quarter and the whole of 2017 and 2016:

Source: Wilmar 2017 results announcement

For the fourth quarter of 2017, revenue from the Oilseeds and Grains segment was up by 18% year-on-year, mainly driven by higher sales volume in the Manufacturing business. Similarly, the segment’s 2017 full year revenue stepped up by 11% on the back of the Manufacturing business’s sales volume growth.

The segment’s stronger revenue, together with a better crush margin, contributed to the tripling of its 2016 profit in 2017.

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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.