- Wilmar International (SGX:F34)’s revenue grew 5.3% y-o-y to US$36.4b in 2H24, driven by higher sales volume in Food Products and Feed & Industrial Products, though weaker sugar prices weighed on performance.
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Soft ending to FY24 but broadly in-line.
- The drop was mainly due to the absence of a US$231m gain from the disposal of its Moroccan associate (Cosumar) in the previous year and a US$22.8m net loss from a share swap.
- Joint ventures and associates contributed US$136.7m, up 13.1% y-o-y, due to a better performance in India and Southeast Asia, though Europe lagged.
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Cautiously optimistic for FY25.
- Total sales volume grew 12% y-o-y, driven by growth across most business segments.
- The Food Products segment showed strong performance with pre-tax profit up 68% y-o-y to US$355.8m, thanks to a share swap gain involving its Chinese associates and joint ventures, and higher sales volume.
- Feed & Industrial Products, however, saw a 44% drop in pre-tax profit to US$295.4m, impacted by weak sugar merchandising and challenging operating conditions in tropical oils business.
- Plantation & Sugar Milling’s pre-tax profit declined 51% y-o-y, or grew 4% y-o-y excluding the gain of US$231.0m from the sale of Cosumar, supported by higher palm oil prices but hindered by lower fresh fruit bunch production and sugar sales.
- Management is cautiously optimistic for FY25, driven by the recovery of consumption demand in China and regions.
- While the company expects continued growth in the Food Products segment, palm oil refining will remain challenging. However, the oilseeds business is expected to perform satisfactorily, especially with record soybean crop production projected in Brazil in 2025.
Fair value estimate raised to S$3.67.
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