Wilmar Q3 net profit falls 59% to $430m
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Wilmar believes its sugar merchandising, milling and refining business will remain “good” till year-end on higher sugar prices.
PHOTO: PIXABAY
Yong Hui Ting
SINGAPORE - Wilmar International’s net profit for the third quarter ended Sept 30, 2023, fell 59 per cent to US$313.9 million (S$430.5 million), from US$766.2 million in the year-ago period.
Its core net profit also fell by similar margins due to compressed refining margins from the tropical oils business and weaker performance by its fertiliser operations, it said in a bourse announcement on Thursday.
This was partially offset by continued strong performance from its sugar milling and merchandising businesses and improved crushing margins arising from tightness in soya bean availability in China, it added.
Revenue in the third quarter slipped by a smaller margin of 6.4 per cent, to US$17.7 billion, from US$18.9 billion in the third quarter of 2022.
Meanwhile, falling palm oil, oilseeds and grains prices led to lower net working capital requirements for the group and net debt fell to US$16.9 billion as at Sept 30, 2023. It was US$18.8 billion in the 2022 financial year. Net gearing ratio also improved to 0.88 times, from 0.94 in 2022.
Wilmar noted that operating conditions in China were better in the third quarter and believes it will likely remain positive for the rest of the year.
Its sugar merchandising, milling and refining business will also remain “good” with higher sugar prices, while tropical oils refining margins will continue to normalise after exceptional conditions last year, it added.
“Barring unforeseen circumstances, we believe results for the rest of the year will be satisfactory,” said the company.
Shares in Wilmar gained 0.6 per cent or two cents to $3.47 on Thursday before the announcement.
