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F34 — Wilmar International News Story

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Wilmar posts higher HY profit on strong growth, flags uncertain operating environment (updated)

UPDATE 2-Wilmar posts higher HY profit on strong growth, flags uncertain operating environment

HY Core Net profit up 9.9% y/y

Declares interim dividend of S$0.05 per share

Feed & industrial, food products units post over 50% rise in pre-tax profit

Updates throughout

By Jasmeen Ara Islam Shaikh and Kumar Tanishk

- Singapore-listed Wilmar International WLIL.SI posted a nearly 10% rise in first-half core profit on strong demand in feed and industrial products and food products segments, but cautioned that geopolitical tensions could weigh on operating conditions.

The company, one of the world's largest food producers, posted a core net profit of $641.5 million for the six months ended June 30. It proposed an interim dividend of S$0.05 per share, up from S$0.04 per share declared a year ago.

Strong performances at the group's two largest divisions, feed and industrial products and food products, outweighed weakness in its plantation and sugar milling business.

However, Kuok Khoon Hong, chairman and CEO of Wilmar, said operating conditions are expected to remain uncertain as the ongoing Iran conflict keeps heightened volatility across commodity markets on the cards for the company.

Wilmar would need to sustain quarterly core net profit of at least $465 million in the second half of 2026 to meet consensus full-year forecasts, with earnings heavily dependent on soybean oil prices, said William Simadiputra, head of research for Indonesia at DBS Group Research.

Shares in Wilmar, which has a market capitalisation of about S$25.3 billion ($19.78 billion), have risen roughly 28% this year — outpacing gains of about 25% at U.S. peer Bunge Global and flat performance at Singapore-listed rival Golden Agri-Resources.

The consolidation of AWL Agri Business AWLA.NS since December and gains from Chinese joint-venture disposals boosted the food products segment in the half-year period. The Adani Group exited AWL, its Indian consumer goods joint venture with Wilmar last year, giving the Singaporean firm control through its roughly 58% stake.

Overall sales volume for the segment grew 19% to 19.4 million metric tons, and revenue jumped 35% to $19.36 billion.

Profit at its feed and industrial products division rose 55%, driven by higher volumes and refining margins in its tropical oils business. Stronger feed demand in the group's biggest market China, which boosted soybean crushing activity, also helped.


($1 = 1.2792 Singapore dollars)


(Reporting by Jasmeen Ara Shaikh and Kumar Tanishk in Bengaluru; Editing by Janane Venkatraman)

((JasmeenAraIslam.Shaikh@thomsonreuters.com;))

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