3 reasons behind Wilmar's impressive 60% profit jump

Thanks to sugar pretax.

According to DBS, Wilmar’s 3Q13 core earnings jumped 60% q-o-q to US$391m (+1% y-o-y).

This was 26% above mid-range forecast of US$303-317m. Including a US$24m gain from the divestment of Fortune Gas Investment Holdings and other non-operating items, Wilmar booked 3Q13 earnings of US$416m.

Here's more from DBS:

The sequential jump was attributable to:

1. Higher-than-expected Sugar pretax of US$151m vs. US$82m expected, mainly on account of strong sugarcane crush volumes in Australia (i.e. 80% of 2013 season) and higher merchandising volumes

2. Sequential jump in Oilseeds & Grains M&P pretax of US$54m (+252% q-o-q) vs. US$22m expected, due to better pricing from pent-up demand for soybean meal (given lack of alternatives) and delayed arrival of soybeans from South America into China

3. Stronger-than-expected Consumer Products pretax of US$58m (+20% y-o-y; +95% q-o-q) vs. US$40m expected, due to strong demand for edible oils and flour

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