Wilmar International’s net profit rises 55.1% YoY to $1.6b in H1 2022
Its key business segments improved their performance during the period.
SGX-listed agribusiness group Wilmar International posted a 55.1% year-on-year increase in net profit to around $1.6b (US$1.16b) in the first half of 2022 due to the improved performance in all key business segments, and higher contributions from its associates and joint ventures.
In a statement, Wilmar said its core net profit more than doubled in the second quarter to over $897m (US$652.1m), leading to a 58% YoY rise to around $1.6b (US$1.16b) in the first half of the year.
Its revenue rose 22% YoY to around $49.7b (US$36.13b) due to the higher commodity prices and improvement in sales volume of food products and feed, and industrial products, particularly oilseeds and grains, during the period.
Wilmar Chairman and CEO Kuok Khoon Hong said the group delivered record results in the first half despite the highly volatile commodity markets due to its integrated and diversified business models and “cautious approach to risk management” when agri-commodities were peaking.
“We are fortunate to be in the agri-processing business as the demand for food products is less impacted by slowing economies as compared to other industries. The recent corrections in commodity prices will hopefully restore some of the demand destroyed by high prices and improve margins in the downstream business,” Kuok said.
“At the same time, whilst palm oil prices have fallen from their peak in 2Q2022, they remain higher than the preCovid period, thus mitigating the effects on oil palm plantation performance,” he said adding that the company is optimistic for its performance for the rest of the year and their business model will continue to help them achieve long-term sustainable growth.
Per segment, Food Products (consumer products, medium pack and bulk) posted a 22% YoY increase in pre-tax profit to around $716m (US$520.5m), Feed and Industrial Products (tropical oils, oilseed & grains, and sugar) rose 5% You in pre-tax profit to around $691.5m (US$502.7m).
Plantation and Sugar Milling’s pre-tax profit more than doubled to around $599.5m (US$435.8m), whilst its other segment declined to around $3.2m ($2.3m) during the first half of 2022 from around $12m ($8.7m) in the same period last year.
Its joint ventures and associates’ pre-tax profit improved 10% to around $210.6m ($153.1m) driven by better contributions from its investments in Europe and Southeast Asia.
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