Wilmar posts 8.6% rise in H2 earnings; plans to pay record dividend

AGRIBUSINESS group Wilmar International posted an 8.6-per-cent rise in net profit to US1.2 billion for its second half (H2) in the six months ended Dec 31, 2022, up from US$1.1 billion in the same period a year prior.

All its key business segments reported higher profits, along with higher contributions from associates and joint ventures, and lower tax rates, Wilmar said in a regulatory filing on Tuesday (Feb 21).

Earnings per share stood at 19.8 US cents in H2 2022, up from 18.1 US cents in the same period in 2021.

The board has proposed a final dividend of S$0.11 per share for H2 2022, Wilmar said. Including the interim dividend of S$0.06 per share paid out last August, the total dividend paid and proposed for FY2022 stands at S$0.17 – the highest cash dividend paid out by the group since its listing.

Revenue for H2 2022 rose 2.8 per cent to US$37.3 billion, from US$36.3 billion previously. This was due to stronger revenue in both the feed and industrial products, and plantation and sugar milling segments, Wilmar said. It added, however, that revenue was dampened by weaker consumer products sales during the period for its food products segment.

For the full year ended Dec 31, 2022, net profit was up 27.1 per cent to US$2.4 billion. Revenue for FY2022 gained 11.6 per cent to US$73.4 billion.

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Noting that FY2022 was an “exceptional year”, Wilmar chairman and chief executive Kuok Khoon Hong said: “We benefited from increased palm oil and sugar prices, good palm processing margins and higher shipping profit due to increased freight rates.”

He added that FY2023 will be “challenging” for the agribusiness giant, as plantation profits and palm processing margins are “expected to be under pressure”. However, Kuok pointed to China’s reversal of its zero-Covid policy as a positive sign.

Shares of Wilmar International dipped 0.5 per cent or S$0.02 to S$3.98 on Tuesday, prior to the announcement.