AGRIBUSINESS Wilmar International on Tuesday (Aug 13) reported a net profit of US$579.6 million for the first half ended Jun 30, up 5.2 per cent from US$550.9 million in the year-ago period.
This was attributed to better performance from the feed and industrial products, as well as food products segments. The gains were partially offset by lower contributions from joint ventures and associates, and sugar milling operations.
Excluding losses from non-operating items, net profit would have been US$606.3 million, up 5 per cent year on year from US$577.2 million.
Earnings per share was US$0.093 for the six months, up 5.7 per cent from US$0.088.
The group declared an interim dividend of S$0.06 per share, which it maintained from last year. The dividend will be paid on Aug 29.
Revenue slid 4.9 per cent to US$30.9 billion, from US$32.5 billion, as commodity prices decreased. The decline was cushioned by higher sales volume over the period.
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Among its segments, feed and industrial products benefitted from higher crushing volume and improved margins in the second quarter of FY2024. Wilmar does oilseed crushing for several varieties, including soybean, rapeseed, groundnuts and sesame seeds.
The segment had a 33.9 per cent increase in pre-tax profit to US$534 million in H1 FY2024, from US$399 million a year ago.
“Further, the increase in sales volume in consumer products, accompanied by lower feedstock costs resulted in a 76.9 per cent improvement in the food products segment,” said the group. Pre-tax profit for food products was US$146.3 million, compared to US$82.7 million in H1 FY2023.
In line with the decrease in commodities prices and lower seasonal working capital requirements, net loans and borrowings reduced by US$434.2 million to US$17.2 billion as at Jun 30, noted Wilmar. Gearing therefore improved to 0.87 times, from 0.88 times.
Commenting on the results, Wilmar chief executive and chair Kuok Khoon Hong said: “Refining margins for tropical oils are expected to remain challenging, while demand and margin for soybean meal products are expected to improve with lower soybean prices.
“Nevertheless, strong operating cashflow, coupled with reduced capital expenditure in the first half of the year, has allowed the group to maintain its interim dividend payout.”
Shares of Wilmar closed 1 per cent or S$0.03 lower at S$3.01 on Tuesday, before the announcement.
