Wilmar posts 34.7% rise in Q3 profit to US$766.2 million

Claudia Chong
Published Fri, Oct 28, 2022 · 06:47 PM

AGRIBUSINESS giant Wilmar International : F34 0% on Friday (Oct 28) posted a net profit of US$766.2 million, up 34.7 per cent from a year ago, for the third quarter ended Sep 30.

Revenue increased 10.2 per cent to US$18.9 billion on the back of better sales across the group’s feed and industrial products, and food products businesses.

The feed and industrial products segment saw an 8.5 per cent rise in sales volume, mainly driven by a 12.7 per cent increase in sales for oilseeds and grains, and 12.1 per cent increase in sales for sugar.

The food products segment posted 3.2 per cent growth in sales volume, dragged down by a 2.8 per cent dip in consumer products sales. Wilmar nevertheless called the results “satisfactory”, and noted that prices of consumer products were adjusted upwards while raw material costs started to decline.

The group also had a higher share of results from joint ventures and associates, and lower effective tax rate during the quarter.

Net profit for the nine months ended September was US$1.9 billion, up 46.3 per cent from a year ago.

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Operating cash flow jumped 68.2 per cent in Q3 to US$3.5 billion, taking into account the recent decline in commodity prices and hence lower net working capital requirements.

Wilmar said that while global operating conditions remained challenging, the group is confident of its “integrated and diversified business model and sound risk management policies”.

The counter ended at S$3.60 on Friday, down S$0.02 or 0.6 per cent, before the results announcement.

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