(Reuters) – Singaporean food conglomerate Wilmar International reported a bigger-than-expected fall in full-year core net profit on Thursday and flagged challenging conditions for its palm oil refining segment in fiscal 2025.
The company, one of the world’s largest food producers, reported a 23.3% decline in core net profit at $1.16 billion for the twelve months ended December 31. Analysts had expected $1.40 billion profit, according to data compiled by LSEG.
While the contribution from the firm’s oilseeds business improved towards the end of the second half, continued challenging operating conditions for its tropical oils business and weaker performance in sugar merchandising weighed on Wilmar’s profits, the company said.
Profit from the plantation and sugar milling segment decreased to $269.1 million in fiscal 2024 from $500.1 million the previous year. Lower sugar prices and sales volume in the second half weighed on the segment.
Wilmar posted a full-year revenue of $67.38 billion, up from $67.16 billion reported in fiscal 2023.
“Palm oil refining is expected to remain challenging while we are cautiously optimistic that oilseeds business will perform satisfactorily as a record soybean crop production is expected in Brazil in 2025,” said Kuok Khoon Hong, chairman and chief executive officer.
The company also proposed a final dividend of S$0.10 per share, slightly lower than S$0.11 per share declared last year.
(Reporting by Shivangi Lahiri and Sherin Sunny in Bengaluru; Editing by Eileen Soreng)
