Wilmar H1 net profit falls 53% to US$551 million on lower margins
Yong Hui Ting
WILMAR International’s net profit for the half year ended June 2023 fell 52.7 per cent to US$551 million, from US$1.2 billion last year.
This was due to lower contributions from food products and feed and industrial products, despite higher sales volume.
However, this was partially offset by improved contributions from its sugar merchandising and shipping divisions, as well as “strong performances” from its European associates and joint ventures, said the company in an earnings announcement on Friday (Aug 11).
Revenue for the agribusiness group slipped 10 per cent, falling to US$32.5 billion, from US$36.1 billion in H1 last year.
Earnings per share saw a 52.4 per cent contraction, down to 8.8 US cents, from 18.5 US cents.
The board has approved an interim dividend of S$0.06 per share, unchanged from last year. This will be paid out on Aug 30, after books closure on Aug 23.
Wilmar chief executive Kuok Khoon Hong said the company’s first-half performance had been affected by a slowdown in most markets, except India, in the second quarter of the year. Business performance was further impacted by lower palm oil and fertiliser prices, as well as lower processing margins for the company’s mid and downstream operations, he added.
Barring “unforeseen circumstances”, the group expects its H2 performance to be better, buoyed by its new businesses in condiments, food park and central kitchen projects, which are expected to become “significant contributors” to its future operations.
Shares of Wilmar fell 0.8 per cent or S$0.03 to S$3.81 on Friday, before the results announcement.
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