|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Wilmar achieves core net profit of $606 mn for 1H2024, 5% higher than 1H2023
|
|
Wednesday, 25 September, 2024, 16 : 00 PM [IST]
|
|
Singapore
|
Wilmar International Limited, Asia’s leading agribusiness group, reported a 5% increase in core net profit to $606.3 million for the six months ended June 30, 2024. Including losses from non-operating items, net profit was $579.6 million in 1H2024.
The improvement was driven by better performances in the Feed & Industrial Products and Food Products segments but partially offset by lower contributions from the Group’s joint ventures & associates as well as sugar milling operations.
Revenue across all the Group’s core segments declined as commodity prices decreased in 1H2024 compared to 1H2023. Overall revenue for 1H2024 declined 5% to $30.93 billion though this was partially offset by higher sales volume during the period.
Food Products (Consumer Products, Medium Pack and Bulk) achieved a robust 77% increase in pre-tax profit to $146.3 million in 1H2024. The improvement was driven by stronger sales volume and a decline in commodity prices which led to lower raw material costs. Overall sales volume for Food Products grew 7% to 15.6 million metric tonnes, backed by volume growth across all sub-segments.
Feed & Industrial Products (Tropical Oils, Oilseeds & Grains and Sugar) reported a 34% growth in pre-tax profit to $534.0 million in 1H2024, mainly driven by increase in sales volume and improvement in crushing margins in the second quarter of 2024. Profit contributions from both tropical oils and shipping businesses remained comparable against the corresponding period in the previous year.
Overall sales volume for Feed & Industrial Products increased 8% to 30.2 million MT, with higher sales volume across all sub-segments.
Plantation & Sugar Milling recorded a 14% decline in pre-tax profit to $53.9 million in 1H2024, with weaker performance in the sugar milling business. Performance for sugar milling was impacted by the temporary change in ethanol production policy in India. The palm plantation business performed better on the back of lower plantation costs despite poorer weather conditions, which resulted in a 6% reduction in fresh fruit bunch production to 1,947,213 MT in 1H2024.
Kuok Khoon Hong, chairman and CEO, Wilmar, said, “The group achieved a satisfactory set of results despite the challenging operating environment across most of our businesses during 1H2024. Refining margins for tropical oils are expected to remain challenging whilst 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. Overall, we are cautiously optimistic that performance for the rest of the year will be satisfactory.”
|
|
|
|
|
|
|
|
|
|