Singapore's Wilmar posts higher interim profit on strong industrial, food businesses

• Feed and industrial products division profit surged 55%, boosted by higher tropical oils volumes and refining margins, plus stronger feed demand in China that increased soybean crushing activity
• Food products unit earnings jumped 56% on higher sales volumes, asset disposal gains, and consolidation of AWL Agri Business results following Adani Group's $1.3 billion exit last year
• The company proposed an interim dividend of S$0.05 per share

SUMMARY

Singapore-listed Wilmar International reported a 9.9% increase in core net profit for the first half of 2024, reaching $641.5 million compared to $583.7 million in the same period last year. The agricultural commodities giant, one of the world's largest food producers, announced these results on August 12.

Key Performance Drivers:

The Feed and Industrial Products division showed robust growth with profits surging 55%, driven by increased volumes and improved refining margins in tropical oils. Enhanced feed demand in China, which stimulated soybean crushing activity, contributed significantly to this performance.

The Food Products unit posted an even stronger 56% rise in earnings, attributed to higher sales volumes, gains from asset disposals, and the consolidation of AWL Agri Business results since December 2023.

Strategic Development:

In 2023, India's Adani Group exited AWL—a consumer goods joint venture with Wilmar—transferring control to the Singaporean company in a $1.3 billion transaction. This consolidation has positively impacted Wilmar's food products segment performance in the current period.

Shareholder Returns:

Wilmar proposed an interim dividend of S$0.05 per share, rewarding shareholders amid the improved financial performance.

Market Implications:

The results demonstrate Wilmar's successful diversification across agricultural value chains, with particular strength in Asian markets. Strong Chinese demand and improved operational margins suggest resilience in the agricultural commodities sector despite global economic uncertainties. The successful integration of the AWL acquisition positions Wilmar for continued growth in the consumer foods segment.