Wilmar swings to US$281 million quarterly profit, but core earnings drop

Wilmar International returned to profitability in the quarter ending 30 September, recording earnings of US$281 million against a US$347.7 million loss a year earlier. The agribusiness group reported the figures in its 28 October stock exchange filing.

The earlier loss mainly reflected compensation of US$712.3 million paid to Indonesia’s government. With that exceptional expense excluded, the latest quarterly profit was 22.9 per cent below the US$364.6 million recorded in Q3 FY2025.

Quarterly revenue increased to US$21.7 billion, a gain of 13.6 per cent from US$19.1 billion. Core earnings moved in the opposite direction, declining 25.2 per cent from US$357.2 million to US$267.3 million.

Wilmar attributed the pressure on its food products business to more expensive raw materials. Weaker margins on soybean crushing affected feed and industrial products, while poorer results from soybean crushing investments in China reduced earnings contributions from associates and joint ventures.

The group said tropical oils provided a partial offset even though volumes were lower. Increased output at its palm plantations and stable palm oil prices also helped.

For the period covering January to September, Wilmar recorded US$889.9 million in net profit, up 259.9 per cent from US$247.3 million. Revenue reached US$60.2 billion after rising 15.9 per cent, whereas core earnings declined 3.4 per cent to US$908.8 million.

Wilmar anticipates continued operating challenges from higher feedstock costs, commodity price increases and disruptions to global supplies. Nevertheless, the group said it remained cautiously optimistic about the rest of the year, citing its diversified operations, cost management and operational efficiency.