Wilmar International (F34) H1 2024 earnings summary

Executive summary

• Core net profit rose 5% year-over-year to US$606.3 million for 1H2024, with net profit at US$579.6 million, up 5.2%, driven by improved Feed and Industrial Products and Food Products segments, despite lower contributions from associates and joint ventures.

• Revenue declined 4.9% year-over-year to US$30.93 billion due to lower commodity prices, partially offset by higher sales volumes.

• Operating cash flow remained strong, supporting continued dividend payout and reduced net debt.

Financial highlights

• Revenue fell 4.9% year-over-year to US$30.93 billion; cost of sales decreased 5.6% to US$28.43 billion.

• EBITDA increased 8.2% to US$1.79 billion; profit before tax rose 6.4% to US$742.2 million; net profit up 5.2% to US$579.6 million.

• Core net profit up 5% to US$606.3 million; EPS up 5.7% to 9.3 US cents (fully diluted).

• Interim dividend maintained at S$0.06 per share, payable August 29, 2024.

• Net tangible assets per share decreased 2.5% to US$2.33.

Outlook and guidance

• Refining margins for tropical oils expected to remain challenging; soybean meal demand and margins anticipated to improve with lower soybean prices.

• Management remains cautiously optimistic for satisfactory performance for the rest of 2024.