09/05/2013 (Fox Business) - Wilmar International Ltd. (F34.SG) Wednesday reported a 23.3% rise in first quarter net profit despite slightly less revenue, but warned lower palm oil prices could hurt profitability at its plantations.

Net profit in the three months ended March 31 was US$315.4 million compared with US$255.9 million in the same period a year earlier. Revenue fell 2.6% to US$10.2 billion.

Wilmar's share of profit from associate companies more than doubled to US$53.2 million from US$21.6 million, the world's largest trader of palm oil by volume said in a statement to the Singapore Exchange.

Profit before tax from its merchandising and processing business rose 46% to US$265.9 million, mainly because its oilseed and grain business swung back to black.

Profit from plantations and palm oil mills declined 27% to US$72.1 million.

"Palm oil prices are likely to remain low, affecting plantations' profitability, [but] the declining price trend is expected to benefit our downstream value-added businesses."

The company also said long-term growth prospects are optimistic for China, which accounts for the largest share of its revenue.