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

Last Friday, Wilmar International Limited (SGX: F34) released its 2019 first-quarter earnings update. 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 the quarter fell by 6.2% to US$10.4 billion.
  2. Gross profit was up by 9.1% to US$1.0 billion.
  3. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 15.5% to US$645.4 million.
  4. Similarly, net profit for the quarter jumped 26.4% to US$257.0 million. Core net profit fared better, up by 36.4% year on year to S$250.3 million.
  5. The conglomerate’s gross margin improved from 8.3% last year to 9.7% this quarter. Similarly, its EBITDA margin strengthened from 5.0% to 6.2% this quarter.
  6. Operating cash flow for the quarter was US$1.7 billion, down from US$1.8 billion last year. The decline was mainly due to a reduction in payables.
  7. The conglomerate’s net debt reduced from US$13.5 billion on 31 December 2018 to US$12.3 billion at quarter end.
  8. For the quarter, the Tropical Oils and Oilseeds and Grains segments reported 13% and 5% declines in revenue, respectively. On the other hand, the Sugar segment did well by growing its top line by 21% to US$1.0 billion.
  9. No dividend was declared for the quarter.
  10. Wilmar provided the following outlook guidance:

“The Group reported a reasonably good set of results in 1Q2019, given the tough operating environment. The improved performance by both Tropical Oils and Consumer Products businesses since 2Q2018 has been encouraging. With the exception of sugar milling and palm plantation, most of our businesses are doing reasonably well. Further, crushing margins are also expected to improve in 2Q2019. We are cautiously optimistic that performance for the rest of the year will be satisfactory.”

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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.