PALMOILMAGAZINE, SINGAPORE – Wilmar International Limited (“Wilmar”) reported a sharp drop in core net profit to US$208.1 million for the third quarter of 2024 (3Q2024), down from US$323.6 million in the same period last year (3Q2023). Despite stronger-than-expected results from its tropical oils, oleochemicals, shipping, and raw material crushing segments, the Group’s overall performance was weighed down by weaker contributions from its operations in China and the sugar segment, which had delivered robust results in 3Q2023.
Including contributions from joint ventures and non-operating gains from investment securities, Wilmar’s total net profit for 3Q2024 reached US$254.4 million, compared to US$313.9 million a year earlier.
According to an official statement received by Palmoilmagazine.com in late 2024, the Group’s Food Products segment recorded a 4.5% increase in sales volume, reaching 8.7 million metric tons (MT) in 3Q2024, up from 8.3 million MT in 3Q2023. Feed and Industrial Products also saw a 9.8% increase in volume, rising from 16.6 million MT to 18.2 million MT. However, overall revenue remained relatively flat due to softer commodity prices.
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For the first nine months of 2024 (9M2024), Wilmar’s core net profit was US$814.4 million, down from US$900.9 million in the same period of 2023. Total net profit stood at US$834.0 million, compared to US$864.8 million a year earlier.
Falling commodity prices reduced the Group’s working capital requirements, leading to a decrease in 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 maintained strong operational cash flow at US$3.05 billion, with free cash flow reaching US$1.80 billion. As of the end of the reporting period, the Group also had US$35.25 billion in unutilized banking facilities. Shareholders’ equity rose by US$255.9 million to US$20.43 billion, supported by higher translation reserves due to the weakening of the US dollar.
Despite operational challenges across several segments, the Group delivered a reasonably solid performance in 3Q2024. Looking ahead, Wilmar expects improved palm oil production to support higher refining margins in tropical oils, while soybean crushing margins are projected to remain positive. Overall, the Group remains optimistic about delivering satisfactory full-year results despite a difficult business environment. (P2)
