The improvement in food products segment results was largely aided by better performance in China’s oil, flour and rice businesses, and was further supported by steady sales volume growth during the quarter.
Abundant South American soybean harvests and higher demand from the livestock industry allowed our soybean business to achieve higher crushing margins and volume in 3QFY2025.
In addition, higher sales volume in the tropical oils business led our Feed & Industrial Products segment to record favourable results. The group’s palm plantation business also continued to contribute favourably during the quarter as palm oil prices remained steady, boosting overall performance.
For the 9MFY2025, core net profit came in at US$940.9 million, while earnings declined to US$247.3 million.
See also: Marco Polo Marine reports revenue of $32.8 mil for 1QFY2026
As at Sept 30, net debt reduced to US$16.48 billion, and net gearing ratio improved to 0.82 times.
As a recap, the Indonesian attorney general office (AGO) brought charges against five of Wilmar’s subsidiaries, Multimas Nabati Asahan, Multi Nabati Sulawesi, Sinar Alam Permai, Wilmar Bioenergi Indonesia and Wilmar Nabati Indonesia, for the harming of state finances, unauthorised profits and harming the business sector.
The companies were accused of illegally profiting from the evasion of state-imposed export controls on cooking oil and palm oil. The alleged actions took place during July 2021 and December 2021.
Later, the AGO submitted an appeal against the decision of the Central Jakarta Court to the Indonesian Supreme Court, requesting that the subsidiaries demonstrate their belief in the Indonesian judicial system and their good faith and innocence by placing a security deposit of IDR11.9 trillion.
The Indonesian Supreme Court overturned Wilmar’s acquittal on Sept 26.
“Operating results for 3QFY2025 have improved from last year but the group’s overall results were unfortunately impacted by the compensation imposed on our Indonesia operations during the quarter. Nevertheless, we expect our business to remain resilient for the rest of the year, barring any adverse change in international government policies that could impact our operations. Overall, we are cautiously optimistic that performance for the rest of the year will be satisfactory,” reads the release.
Shares in Wilmar closed 2 cents lower or 0.637% down at $3.12 on Oct 30.
