Agribusiness group Wilmar International F34 has announced earnings of US$1.5 billion ($2.0 billion) for FY2023 ended Dec 31, 2023, a 36.5% decline compared to its record earnings of $2.4 billion in FY2022.
In 2HFY2023 the group saw improved performance from plantations and sugar milling, and food products segments, but weaker performance from the feed and industrial products segment.
Together with non-operating losses in 2HFY2023, earnings for the half-year period declined 21% y-o-y to US$973.9 million.
Revenue for the full-year declined by 8.5% y-o-y to US$67.2 billion, as most commodity prices decreased in 2HFY2023. However, this was partially offset by higher sales volume across the group’s core segments and higher sugar prices.
The group’s cost of sales was also lower by 7.4% y-o-y to US$61.9 billion, as gross profit decreased 19.4% y-o-y to US$5.3 billion
As at Dec 31, 2023, cash and cash equivalents stood at US$4.4 billion.
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The board has proposed a final dividend of 11 cents per share. Including the interim dividend of 6 cents per share paid in August 2023, the total dividends paid and proposed for FY2023 is 17 cents, unchanged from the previous year.
Chairman and CEO Kuok Khoon Hong says: “Following an exceptional year in FY2022, we recorded a satisfactory set of results in FY2023 despite headwinds faced across various businesses during the year. We expect the tough operating conditions to continue into FY2024. Tropical oil margins are expected to remain depressed, sugar milling margins will be affected by lower sugar prices and operating conditions in China are expected to remain challenging.”
“We are confident that our integrated and diversified business model will continue to help us weather through the coming year. In 2024, we will continue to focus on improving efficiencies of our operations, reducing capital expenditure and extracting benefits from our past expansion, especially those that started operations in the last few years,” he adds.
Shares in Wilmar closed 2 cents higher or 0.62% up at $3.26 on Feb 21.
