SINGAPORE (Aug 11): Wilmar International reported its first ever quarterly net loss of US$220.1 million ($296 million) in 2Q16, compared with earnings of $193.2 million in 2Q15.

For the three months to June, revenue rose 0.9% to US$9.37 billion on higher sales volumes that was offset by lower commodity prices. Gross margins fell 2.4 percentage points to 5.1%.

For half-year period, earnings fell 95.5% to US$19.3 million while revenue fell 1.7% to US$18.4 billion.

In a filing to the exchange, Wilmar said the losses arose from its manufacturing business in its oilseeds and grains segment, on the untimely purchases of soybeans in the volatile market.

The sugar segment also recorded poorer results due to unfavourable weather conditions that delayed harvesting in Australia, as well as accounting marked-to-market losses on sugar hedges.

The tropical oils segment benefited from the stronger performance from its downstream businesses, despite lower production at its plantations businesses.

During the quarter, the group recorded a US$32 million share of profits from Adani Wilmar, Cosumar, and its African associates. That compares with a US$10.9 million share of losses in 2Q15.

Wilmar says its integrated business model “remains intact and resilient” and will continue to focus on its downstream businesses and its high growth Asian and African markets. Its performance for the rest of the year is also expected to be satisfactory, it adds.

The board has declared an interim dividend of 2.5 cents per share.

Shares of Wilmar closed unchanged at $3.09 on Thursday.

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