Wilmar reported net profit of US$318.6mn in 4Q 2010

Excluding biological asset gains, 4Q10 net profit was US$117.8 million.

According to DBS, 4Q10 top line grew by 31% y-o-y and 17% q-o-q to US$9,088.8m. Merchandising and Processing revenue increased 33% y-o-y and 22% q-o-q to US$8,130.1m; while Consumer Products revenue increased 29% y-o-y and 4% q-o-q to US$1,413.3m. Plantation revenue also grew by 53% y-o-y and 24% q-o-q to US$497m.

4Q10 M&P pretax swung into a loss of US$14.1m, mostly driven by oilseeds and grains loss M&P pretax of US$173.2m, offset by US$159.1m pretax from palm and lauric (+8% y-o-y; 6.2% q-o-q). The group cited "less timely purchases of raw materials and excessive imports of beans by the industry" for the drops. Consumer products’ 4Q10 pretax profit also dropped by 33% y-o-y (but up 9% q-o-q) to US$37.5m.

However, Plantations’ 4Q10 pretax profit increased by 6% y-o-y and 14% q-o-q to US$129.6m thanks to higher realised prices, offset by higher costs.

On per MT basis, Wilmar's 4Q10 palm & lauric M&P pretax margin sequentially declined to US$27.5 (from US$29.8 in 3Q10); while oilseeds and grains M&P pretax margin fell deeper in the red to -US$36.5 (from -US$7.5 in 3Q10). For the FY10, The group's M&P pretax margin settled at US$6.4 for oilseeds (below forecast of US$16) and US$28.2 for palm & lauric (slightly ahead of US$25 forecast).

The group's ending cash level was 12% higher q-o-q at US$6,787.8m (from US$6,079.9m)

Total borrowing stood at US$17,425m at the end of Dec10 (up from US$12,743.7m at the end of Sep10) - translating to net gearing ratio (including MI) of 84.7% - up from 54% at the end of last quarter. The increase mainly represented short term debt, due to higher working capital to accommodate higher commodity prices

The group had spent US$2,609.8m on capex in FY10 (ex.investments in associates), while 4Q10 alone accounted for US$1,883.8m. Planting capex seemed to remain low during the quarter, suggesting little expansion.