Wilmar International (F34) H1 2024 earnings summary

Executive summary

• Achieved satisfactory results in 1H2024 despite a challenging operating environment, with strong operating cash flow and reduced capital expenditure supporting stable interim dividends.

• Core net profit rose 5.0% to US$606.3M in 1H2024, driven by improved Feed and Industrial Products and Food Products segments, despite lower contributions from associates and joint ventures.

• Net profit increased 5.2% to US$579.6M, while revenue declined 4.9% to US$30.93B due to lower commodity prices, partially offset by higher sales volume.

Financial highlights

• Revenue declined 4.9% year-over-year to US$30.93B in 1H2024; cost of sales decreased 5.6% to US$28.43B.

• EBITDA increased 8.2% to US$1.79B; net profit rose 5.2% to US$579.6M.

• Core net profit up 5% to US$606.3M; EPS up 6% to 9.3 US cents (fully diluted).

• Interim dividend maintained at SGD 0.06 per share, payable 29 August 2024.

• Net tangible assets per share decreased 2.5% to US$2.33.

Outlook and guidance

• Refining margins for tropical oils expected to remain challenging; soybean meal demand and margins seen improving with lower soybean prices.

• Cautiously optimistic for satisfactory performance for the rest of the year.