Wilmar International has reported earnings of US$595 million ($765.34 million) for the 1HFY2025 ended June 30, up 3% y-o-y.
The group’s revenue for the 1HFY2025 came in 6% y-o-y higher at $32.9 billion.
The group says that its pre-tax profit for the 1HFY2025 grew 26.3% y-o-y to US$937.7 million due to stronger performances in the Plantation & Sugar Milling and Food Products segments.
Contributions from associates and joint ventures were also higher, more than doubling in 1HFY2025 compared to 1HFY2024. However, these improvements were partially offset by lower contributions from the Feed & Industrial Products segment.
Together with higher tax recognised in the 1HFY2025, this has resulted in earnings increasing by 3% y-o-y.
Wilmar’s Food Products segment saw a 34% y-o-y increase in pre-tax profit from better performance from the flour and rice divisions in China and higher sales volume.
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Its Feed & Industrial Products saw a decline in pre-tax profit of 29% y-o-y due to challenging operating conditions for the tropical oils business which impacted refining margins. Sugar merchandising activities were also lower during the period. These factors were partially offset by better performance in the oilseeds and grains business, especially in China which saw improvement in crush margins and higher demand for its products.
In its Plantation & Sugar Milling segment, pre-tax profit increased more than three-fold due to higher palm oil prices.
Wilmar’s Others segment which comprises mainly head office related expenses and investment activities saw lower pre-tax losses.
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Share of results of joint ventures & associates more than doubled to US$196.5 million in 1HFY2025 with higher contributions especially from the group’s investments in Asia.
The board of Wilmar has declared an interim dividend of 4 cents per share for the 1HFY2025.
As at June 30, inventories decreased by 10% to US$11.64 billion, largely due to the post-Chinese Spring Festival seasonal impact, leading to lower inventory stockholding in China compared to December 2024. However, this was partially offset by longer inventory turnover during the period, which increased from 68 days in 1HFY2024 to 72 days in 1HFY2025.
As at June 30, net loans and borrowings reduced to $18.9 billion, resulting in net gearing ratio improving to 0.87 times.
The group had total assets at US$60.72 billion as at end June.
Shares in Wilmar closed flat at $2.97 on Aug 12.
