Wilmar's profit jumped 49.8% to $839.92m in H1

Interim tax exempt (one-tier) dividend for H1 is at $0.04 apiece.

Wilmar International saw its profit attributable to shareholders surge 49.8% YoY to $839.92m (US$610.87m) in H1 from $560.8m (US$407.87m) in H1 2019, an SGX filing revealed.

This came on the back of improved contributions across all core segments. Excluding losses from non-operating items, core net profit for the same period improved 48.9% YoY to $874.34m (US$635.9m) from $587.16m (US$427.1m).

Furthermore, revenue similarly rose 12% YoY to $31.15b (US$22.66b) in H1 from $27.81b (US$20.23b). It was driven by improved demand across all core segments. It was also paired with a spike in demand for its consumer products sales, and the consolidation of Goodman Fielders’ results in the current period, contributed to the higher revenue recognised in H1.

Wilmar’s food products segment registered a 21% YoY jump in pre-tax profit to $680.72m (US$495.1m) in H1, driven by strong demand for consumer products during the period. This improvement was partially offset by lower sales in the medium pack and bulk businesses, as demand from the hotels/restaurants/catering (HORECA) industry was weak in Q1 due to lockdowns in the major markets where the group operates.

Feed and industrial products segment’s pre-tax profit skyrocketed 105% YoY $509.9m (US$370.8m) in H1, on the back of a strong recovery in its oilseeds and grains business. It was thanks to an increase in demand as China recovered from the African swine fever outbreak that occurred in the previous year.

On the other hand, the plantation and sugar milling recorded a lower pre-tax loss of $113.98m (US$82.9m) in H1, mainly aided by better performance from the palm oil plantation business. Its growth came on the back of stronger palm oil prices compared to H1 2019. Lastly, the others segment recorded a pre-tax loss of $56.65m (US$41.2m) in H1, mainly from mark-to-market losses from the group's investment portfolio.

Joint ventures and associates doubled their contributions to $115.62m (US$84.1m) in H1, as a result of stronger performance from the group’s investments in China, India and Africa.

The board has proposed an interim tax exempt (one-tier) dividend for H1 of $0.04 per share, payable on 27 August.

As at June 30, 2020, total assets stood at $65.06b (US$47.32b), whilst shareholders’ funds was at $22.66b (US$16.48b). Net debt dipped by $837.08m (US$608.9m) to $17.34b (US$12.61b) on the back of strong operating cash flows and lower working capital requirements.