InfoSAWIT, SINGAPORE – Wilmar International Limited (“Wilmar”) reported a lower core net profit of US$208.1 million in the third quarter of 2024 (3Q2024), a significant decrease from US$323.6 million in the same period last year (3Q2023). Although the tropical oils, oleochemicals, shipping, and raw material crushing segments showed better-than-expected results, the overall performance of the Group was affected by weaker contributions from operations in China and the sugar sector, which had previously recorded strong performance in 3Q2023.

Overall, Wilmar's net profit, including contributions from joint ventures and non-operational gains from investment securities, reached US$254.4 million in 3Q2024, down from US$313.9 million in the same period last year.

In an official statement received by InfoSAWIT at the end of 2024, the sales volume for the Food Products segment increased by 4.5%, reaching 8.7 million metric tons (MT) in 3Q2024 compared to 8.3 million MT in 3Q2023. On the other hand, the sales volume for the Feed and Industrial Products segment rose by 9.8%, from 16.6 million MT in 3Q2023 to 18.2 million MT in 3Q2024. However, with overall lower commodity prices, total revenue remained at a similar level to last year.

During the first nine months of 2024 (9M2024), the Group's core net profit was recorded at US$814.4 million, down from US$900.9 million in 9M2023. The overall net profit was recorded at US$834.0 million, lower than US$864.8 million in the same period last year.

It was noted that the decline in commodity prices led to lower working capital needs, reducing the Group's net debt to US$16.56 billion as of September 30, 2024, down from US$17.65 billion at the end of December 2023. The Group's net gearing ratio also improved to 0.81x from 0.88x in FY2023.

Wilmar generated stable operating cash flow of US$3.05 billion, with free cash flow reaching US$1.80 billion. At the end of the reporting period, the Group also had unused banking facilities amounting to US$35.25 billion. Shareholder equity increased by US$255.9 million to US$20.43 billion, driven by the weakening of the US Dollar, resulting in higher translation reserves.

Amid operational challenges across most businesses, the Group recorded fairly good results in 3Q2024. It is expected that with increased palm oil production, the refining margins for tropical oils will improve, while soybean crushing margins are projected to remain positive. Overall, the Group is optimistic that performance at the end of the year will remain satisfactory despite challenging conditions. (T2)