Wilmar posts US$347.7 million Q3 loss on 11.9 trillion rupiah graft penalty; core profit jumps 71%
Revenue is up 7.4% at US$19.1 billion; all sectors enjoy stronger operational results
[SINGAPORE] Singapore-based agribusiness group Wilmar International posted a net loss of US$347.7 million for the third quarter ended Sep 30, reversing from a net profit of US$254.4 million in the same period a year earlier.
In a bourse filing on Thursday (Oct 30), the palm oil giant attributed the net loss to a payment of 11.9 trillion rupiah (S$926.6 million) in relation to the group’s actions amid a shortage of cooking oil in the country.
Last month, Wilmar was found guilty of corruption, after Indonesia’s Supreme Court overturned an earlier acquittal in a graft case involving cooking oil export permits during the shortage crisis from 2021 to 2022. The group had earlier handed over the sum in question as a “security deposit” in cash to the Indonesian authorities.
Wilmar previously said it expected to post a net loss for Q3 due to the court-imposed penalty, though it maintained that it anticipates a full-year net profit for the financial year ending Dec 31, 2025.
Excluding the payment, Wilmar’s Q3 core net profit rose 71.6 per cent to US$357.2 million, from US$208.1 million a year earlier.
This was driven by “stronger operational results” across all core segments, supported by “higher contributions from its joint ventures and associates”.
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Revenue rose 7.4 per cent year on year to US$19.1 billion.
The group’s sales volumes also rose across key businesses. Its food products segment booked a 6.5 per cent increase to 9.3 million tonnes in Q3, from 8.7 million tonnes a year earlier. The feed and industrial products segment grew 3.2 per cent to 18.8 million tonnes, from 18.2 million tonnes for Q3 2024.
Wilmar said its improvement in its food products segment results was largely aided by “better performance in China’s oil, flour and rice businesses”, as well as steady sales growth during the quarter.
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Meanwhile, “abundant” soybean harvests in South America and higher demand from the livestock industry led to higher crushing margins and volume for the group’s soybean business.
In addition, higher sales volumes in the tropical oils business lifted results in the feed and industrial products segment. The palm plantation business continued to “contribute favourably” as palm oil prices remained steady.
“Cautiously optimistic”
Wilmar said that while its operating results for Q3 2025 improved year on year, overall performance was adversely affected by the 11.9 trillion rupiah payment.
“Nevertheless, we expect our business to remain resilient for the rest of the year, barring any adverse change in international government policies that could impact our operations,” the group said. It added it remains “cautiously optimistic that performance for the rest of the year will be satisfactory”.
The graft case
In April 2024, Indonesia’s Attorney-General’s Office (AGO) brought charges against Wilmar for allegedly “harming state finances, (making) unauthorised profits and harming the business sector”, and claimed for losses totalling 12.3 trillion rupiah.
The group’s subsidiaries were accused of “corrupt actions” to illegally profit from the evasion of state-imposed export controls on cooking oil and palm oil, which were put in place to stem a domestic shortage amid a surge in palm oil prices.
The group has maintained that its actions during this period were in compliance with prevailing regulations. It was vindicated in March this year, when the Central Jakarta Court acquitted Wilmar and two other palm oil producers – Musim Mas and Permata Hijau – of misconduct in obtaining export permits.
But things took a turn the following month, when the AGO arrested all four judges involved in the case on charges of accepting at least US$1.1 million in bribes to deliver a favourable verdict.
In June, the AGO held a press conference showcasing Wilmar’s 11.9 trillion rupiah security deposit, which was to have been a demonstration of the company’s “belief in the Indonesian judicial system and their good faith and innocence”.
This came after the AGO submitted an appeal against the lower court decision to the Indonesian Supreme Court. The sum would have been returned to Wilmar if the Supreme Court had upheld the decision.
Ample liquidity
In its bourse filing on Thursday, Wilmar also provided an update on its performance for the first nine months of 2025.
The group reported a net profit of US$247 million for the period, down 70.4 per cent from US$834 million for the same period a year earlier. Its core net profit, on the other hand, rose 15.5 per cent to US$940.9 million, from US$814.4 million previously.
Wilmar’s net gearing ratio as at Sep 30 improved to 0.82 times from 0.94 times a year earlier. This came after the softening of soybean and sugar prices during the period reduced the group’s working capital requirements, lowering net debt to US$16.5 billion as at Sep 30, from US$18.64 billion at the end of December 2024.
Wilmar also generated “stable cash flows” from operating activities of US$4 billion during the period. At the end of Q3, the group also held unutilised banking facilities amounting to US$36.94 billion.
Indonesia unit general manager charged over sugar imports
In a separate bourse filing on Thursday, Wilmar said the general manager of its Indonesian subsidiary Duta Sugar International (DSI) has been convicted by the Central Jakarta District Court.
The court found him guilty of “unlawful acts related to the import of raw sugar”, which allegedly caused financial losses of 578 billion rupiah to Indonesia. The individual, who was not named, was sentenced to four years in prison and fined 200 million rupiah.
Wilmar said that a security deposit of 41.2 billion rupiah that DSI had placed with the AGO was forfeited and will be used as restitution for the company’s share of the alleged losses. It previously said that the financial impact from such a forfeiture would not be material to the company’s financial performance.
The group also noted that representatives of eight other sugar producers involved in the same case received similar prison sentences.
Wilmar said it “respects” the court’s decision, though it claimed the judgment “did not mirror” the outcome of a related case involving the former Indonesian trade minister, Thomas Lembong.
The sugar producers involved have maintained that they were acting under the direction of Lembong. Wilmar said the case against him had been “abolished and halted”.
Shares of Wilmar fell 0.6 per cent or S$0.02 to S$3.12 on Thursday, before its bourse filings.
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