Wilmar cut 1H25 dividends by 33% y-o-y to 4 cents, partially owing to regulatory & legal issues it’s facing in Indonesia, we believe.
Wilmar’s 2Q25 core NPAT declined 13% y-o-y owing to higher tax expenses while revenue momentum was strong at +9% y-o-y. 1H revenue rose 6% y-o-y and higher associates and JV contributions allowed for a 26% y-o-y lift in PBT but offset by higher taxes, leading to 3% y-o-y drop in core earnings.
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Operating trends remain resilient
Wilmar’s food product volumes increased 4% y-o-y in 1H, driven by better performance in the Group’s flour and rice divisions in China, leading to 5% revenue and 34% y-o-y PBT growth. We think improving Chinese macro remains a supporting factor helping consumers to buy higher end products, which should allow revenue to grow at a faster clip vs volume growth.
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Plantation and sugar milling PBT more than tripled, driven by higher palm oil prices, improved FFB output, and stronger sugar sales.
Key takeaway from the post results analyst call
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