April 29 (Reuters) - Singapore-listed Wilmar International reported a 23% fall in first-quarter core net profit on Wednesday, as the food conglomerate's higher sales volume was offset by hedging losses from commodity price volatility caused by the U.S.-Iran war.
The feed and industrial segment, the company's biggest revenue generator, sold 15.9 million tons of product during the quarter, up 11.7% over a year earlier, while sales volume at its food segment jumped 22.3%.
However, earnings were pressured by sharp swings in commodity prices as the U.S.-Iran war unsettled energy markets and disrupted global trade flows, resulting in temporary unrealised mark-to-market losses on the company's hedging positions.
Wilmar said it expects to reverse these losses in the coming quarters, when physical transactions are settled.
Weaker contributions from associates and joint ventures across China, Europe and Southeast Asia regions also weighed on overall earnings.
The company said profits from its plantation and sugar milling segment also declined due to lower palm oil prices and production volume, as well as weaker sugar performance.
Wilmar posted a core net profit of $264.2 million for the three months ended March 31, down from $343 million a year earlier.
"Looking ahead, operating conditions for the remainder of the year will continue to depend on the evolution of geopolitical tensions and development in global trade policies," the company said.
(Reporting by Shruti Agarwal in Bengaluru; Editing by Jonathan Ananda and Vijay Kishore)
