Wilmar International has reported earnings of US$550.9 million for 1HFY2023, down 52.7% y-o-y. Revenue in the same period ended June was down 10% y-o-y to US$32.5 billion. While sales volume increased, prices of commodities dropped, the company says.
Despite the lower earnings, Wilmar plans to maintain an interim dividend of 6 cents per share.
Kuok Khoon Hong, chairman and CEO, says that the 1HFY2023 numbers were impacted by lower palm oil and fertiliser prices, as well as lower processing margins for our mid and downstream operations.
"These were partially offset by strong performance from sugar and shipping divisions," he adds.
Kuok notes that the company has made "good progress" in its new businesses such as condiments, and so-called Food Park and Central Kitchen projects.
These new businesses are expected to be significant contributors to Wilmar's operations in future.
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"Barring unforeseen circumstances, we believe the second half of 2023 will be better than 1H2023," says Kuok.
Wilmar shares closed at $3.81 on Aug 11, down 0.78% for the day and down 7.3% year to date.
