Wilmar International has reported a net profit of US$343.9 million ($450.30 million) for the 1QFY2025 ended March 31, up 13.5% y-o-y.
Core net profit for the quarter improved 4.4% y-o-y to US$343 million on the back of better performance from both Food Products and Plantation and Sugar Milling segments, as well as higher contributions from its associates and joint ventures, mainly from its investments in China, India and Southeast Asia.
However the group says that these were partially offset by weaker contributions from the Feed and Industrial Products segment. Operating conditions for the tropical oils business remained challenging in 1QFY2025 while crushing margins improved during the quarter.
The group reported a revenue growth of 3.3% y-o-y for 1QFY2025 of US$16.2 billion.
For the 1QFY2025, operating cash flow before working capital changes came in 47.9% y-o-y higher at US$948.5 million. Cash flows from operating activities grew 16.4% y-o-y to US$2.09 billion.
Wilmar's higher profits during the quarter, coupled with lower working capital requirements, led the group to higher cash flow for the quarter.
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The lower working capital requirements also led to a reduction in net debt to US$16.85 billion as at March 31, 2025.
Consequently, net gearing ratio improved to 0.83 times as of March 31, 2025.
On outlook, the group says that the rest of the year is expected to remain uncertain with increased volatility arising from the introduction of tariffs by the US. However, Wilmar expects the results for the rest of the year to remain satisfactory due to its diversified and resilient integrated business model which it says will help weather difficult conditions.
Shares in Wilmar Internationalclosed 12 cents lower or 3.822% down at $3.02 on Apr 29.
