Wilmar posts 1H21 net profit rose 23 percent on feed & industrial products, sugar

A palm oil tree at a plantation in IndonesiaA palm oil tree at a plantation in Indonesia

Wilmar International reported Wednesday its first half net profit increased 23 percent on-year to US$750.9 million, boosted by better performance in the feed & industrial products and plantation & sugar milling segments.

Higher contributions from associates and joint ventures, mainly on better results from investments in Africa, Europe and China, also gave a fillip to the performance, Wilmar said.

Core net profit, which excludes gains from non-operating items, improved 15.2 percent on-year in the first half to US$732.2 million, the agri-business company said in a filing to SGX.

First half revenue climbed 30.4 percent on-year to US$29.53 billion, mainly on higher commodity prices as well as an overall increase in sales volume, especially from medium-pack and bulk products in the food products segment, the company said.

Wilmar declared an interim dividend of 5 Singapore cents a share, its highest interim dividend since listing, compared with 4 Singapore cents in the year-ago period. The dividend will be payable on 27 August.

Kuok Khoon Hong, chairman and CEO of Wilmar, was cautiously optimistic in the outlook.

“The Covid-19 pandemic extended into the current year and continues to bring about disruptions and market volatility in the countries where the group operates. Results for 1H2021 have been satisfactory despite the challenging operating conditions,” Kuok said in the statement.

“The strength of our diversified operations is that it enables the group to continue to perform well as weakness in one business is often offset by good performance in other segments. Barring unforeseen circumstances, the group’s performance for the rest of the year is expected to be satisfactory,” he added.

Read detailed information on the performance of Wilmar’s operating segments.