Wilmar International (F34) H2 2023 earnings summary

Executive summary

• FY2023 revenue was US$67.16b and core net profit US$1.57b; core profit fell 35% and revenue fell 9%, mainly reflecting weak H1 performance.

• Reported net profit was US$1.525b, diluted EPS 24.4 US cents, and EBITDA US$3.96b.

• Results improved in several segments in H2 as market volatility eased; the balance sheet remained strong, with assets of US$61.81b and shareholders’ funds of US$20.17b.

Financial highlights

• Revenue was US$67.155b vs US$73.399b in FY2022; gross profit was US$5.273b vs US$6.546b.

• Profit before tax was US$1.956b vs US$3.117b; net profit including discontinued operations was US$1.525b vs US$2.402b.

• EBITDA was US$3.963b vs US$4.734b; diluted EPS was 24.4 US cents vs 38.3 US cents.

• Operating cash flow was US$3.89b vs US$2.05b; free cash flow was US$1.89b and cash equivalents reached US$4.38b at year-end.

Outlook and guidance

• Challenging operating conditions are expected to persist into FY2024; the integrated, diversified model is expected to support growth and profitability.

• FY2024 priorities: improve operating efficiency, reduce capex and capture benefits from recent expansions; capex is expected to be funded mainly from internal resources.

• Food demand may recover slightly as consumer sentiment improves in China; India FMCG is expected to expand at a healthy rate.

• China soybean demand is expected to remain soft; sugar refining and distribution should stay supported for most of 2024, while tropical oils demand is expected to be muted but supported by Indonesia’s B35 mandate.

• Industry oil palm production is expected to be flattish in 2024; sugar milling may be affected by lower sugar prices despite an elevated Far East premium.