Wilmar Q3’23 net profit dips, dragging YTD performance
It was partially offset by robust performance in our sugar milling and merchandising businesses.
Wilmar International Limited's third-quarter earnings declined by 59.0% year-on-year (YoY) to US$313.9m, primarily due to reduced refining margins in the tropical oils business, aligning with industry-wide trends, and weaker performance in our fertilizer operations, the company said in a local bourse filing.
However, the weaker results were partially offset by robust performance in our sugar milling and merchandising businesses, as well as improved crushing margins resulting from soybean shortages in China.
For the first nine months of 2023, the Group reported a net profit of US$864.8m, compared to US$1.93b in the same period in 2022.
Wilmar noted that the results for the first nine months of 2022 included a gain of US$175.6m from the dilution of interest in Adani Wilmar Limited.
“Operating conditions in China were better in 3Q2023 and will likely remain positive for the rest of the year. Sugar merchandising, milling and refining will remain good with higher sugar prices while tropical oils refining margins will continue to normalise after exceptional conditions last year. Barring unforeseen circumstances, we believe results for the rest of the year will be satisfactory.” the company said.