WILMAR International : F34 0%’s net profit for the half year ended December 2023 fell 21.3 per cent to US$973.9 million, from US$1.2 billion the year before.

This was due to lower contributions from its feed and industrial products division as well as non-operating losses, the agribusiness group said in a bourse filing on Wednesday (Feb 21).

The non-operating losses were due to factors such as weaker equity market conditions and a higher interest cost environment throughout the year.

However, this was partially offset by improved contributions from its plantations and sugar milling division, as well as in food products.

Earnings per share stood at 15.6 US cents for the half year, down 21.2 per cent from 19.8 US cents a year ago.

Revenue declined 7.1 per cent to US$34.6 billion for the half year, from US$37.3 billion in the corresponding period last year.

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This was due to lower prices for most commodities, partially offset by increased sales volume across the group’s core segments as well as higher sugar prices.

A total dividend of S$0.17 per share was declared for the full year, unchanged from the year before. It will be paid on May 14, after books closure on May 2.

For the full year ended December 2023, net profit was down 36.5 per cent to US$1.5 billion, mainly due to weaker performance in the first half of the year.

Revenue for the full year fell 8.5 per cent to US$67.2 billion.

Kuok Khoon Hong, Wilmar’s chairman and chief executive, expects tough operating conditions to continue into FY2024.

“Tropical oils margins are expected to remain depressed, sugar milling margins will be affected by lower sugar prices and operating conditions in China are expected to remain challenging,” he said.

He added: “We are confident that our integrated and diversified business model will continue to help us weather through the coming year. In 2024, we will continue to focus on improving efficiencies of our operations, reducing capital expenditure and extracting benefits from our past expansion, especially those that started operations in the last few years.”

Wilmar’s shares closed up 0.6 per cent or S$0.02 to S$3.26 on Wednesday, before the results announcement.