Wilmar International has reported a core net profit of US$208.1 million ($275.2 million) for the 3QFY2024 ended Sept 30, 35.7% lower y-o-y, due to weaker contributions from its Chinese operations and its sugar division, which more than offset the better performances from tropical oils, oleochemicals, shipping and crushing.
Overall net profit, which includes contributions from Wilmar’s joint ventures and associates as well as non-operating gains recognised from the group’s investment securities, fell by 19% y-o-y to US$254.4 million.
In the 3QFY2024, the group’s revenue rose slightly by 0.4% y-o-y to US$17.75 billion despite higher sales volumes as most commodity prices were lower comparatively.
Sales volumes for Wilmar’s food products, which includes consumer products and medium pack and bulk, rose by 4.5% y-o-y to 8.7 million metric tonnes (MT). Medium pack and bulk rose by 5.8% y-o-y to 6.45 million MT while consumer products inched up by 0.9% y-o-y to 2.2 million MT.
Sales volumes for Wilmar’s feed and industrial products grew by 9.8% y-o-y to 18.2 million MT. Under this segment, sugar rose by 10.6% y-o-y to 3.98 million MT while oilseeds and grains rose by 22.7% y-o-y to 7.66 million MT. Meanwhile, tropical oils fell by 2.6% y-o-y to 6.6 million MT.
During the 9MFY2024, Wilmar’s core net profit fell by 9.6% y-o-y to US$814.4 million. 9MFY2024 net profit fell by 3.6% y-o-y to US$864.8 million while revenue fell by 3% y-o-y to US$48.68 billion.
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In the 3QFY2024, Wilmar reported US$1.26 billion from cash flows from operating activities, which fell by 2.8% y-o-y while net debt for the 9MFY2024 fell by 6.2% y-o-y to US$16.6 million as the continued softening of most commodity prices led to lower capital working requirements.
In its Oct 30 statement, Wilmar noted its “reasonable” set of results despite the “challenging operating environment” across most of its businesses during the 3QFY2024. However, it sees that refining margins for tropical oils are expected to improve on the back of forecasted improvements in palm production. At the same time, crushing margins for soybean are expected to remain positive
“Overall, we are cautiously optimistic that performance for the rest of the year will be satisfactory,” says the group.
Shares in Wilmar closed 2 cents lower or 0.62% down at $3.20 on Oct 30.
