Wilmar International Limited ("Wilmar" or the "Company")

For the period ended 31 March 2024

Executive Summary

Key highlights of Wilmar Group results for the period ended 31 March 2024 ("1Q2024"):

1Q2024

1Q2023

US$'000

US$'000

Change

Revenue

15,681,532

16,914,552

-7.3%

Net Profit

302,905

391,380

-22.6%

Core Net Profit

328,422

381,859

-14.0%

EBITDA

911,456

970,640

-6.1%

Sales volume ('000MT)

Food Products

- Consumer Products

2,429

2,291

6.0%

- Medium Pack and Bulk

5,758

4,894

17.7%

8,187

7,185

13.9%

Feed and Industrial Products

- Tropical Oils

5,952

5,905

0.8%

- Oilseeds and Grains

5,355

5,039

6.3%

- Sugar

3,330

2,739

21.6%

14,637

13,683

7.0%

Operating cash flows before working capital changes

641,262

756,094

-15.2%

Cash flows from operating activities

1,793,278

2,170,298

-17.4%

31.03.2024

31.12.2023

Net debt

16,279,290

17,652,292

7.8%

Equity attributable to owners of the Company

20,091,246

20,172,838

-0.4%

Performance for 1Q2024

The Group continued to see an increase in volume of sales across all its core businesses during the quarter. Sales volume for Food Products segment grew by 13.9% to 8.2 million MT in 1Q2024 (1Q2023:

7.2 million MT) while sales volume for Feed and Industrial Products segment grew by 7.0% to 14.6 million MT in 1Q2024 (1Q2023: 13.7 million MT). Nevertheless, as most commodity prices have declined since 1Q2023, overall revenue recognised by the Group decreased by 7.3% to US$15.68 billion for the quarter (1Q2023: US$16.91 billion).

The decline in commodity prices led to lower raw material cost for Food Products segment, improving overall profits for the segment in 1Q2024. However, weaker performance from our sugar merchandising division lowered profits for Feed and Industrial Products segment in the current period while our tropical oils and crushing businesses remained challenging. Share of profits from joint ventures and associates was also reduced during the quarter, mainly due to our investments in China. These led core net profit for the Group to be lower at US$328.4 million in 1Q2024 (1Q2023: US$381.9 million). Together with non-operating losses recognised from the Group's investment securities, net profit for the quarter decreased to US$302.9 million (1Q2023: US$391.4 million).

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Cash Flow & Balance Sheet

The seasonal reduction in overall inventory balance and continued softening of most commodity prices led to lower working capital requirements for the Group, reducing net debt to US$16.28 billion as of 31 March 2024 (31 December 2023: US$17.65 billion). Consequently, net gearing ratio for the Group improved to 0.81x as of 31 March 2024 (FY2023: 0.88x). The Group generated stable cash flows from operating activities of US$1.79 billion for the quarter, with free cash flow amounting to USS$1.34 billion. At the end of the reporting period, the Group also had unutilised banking facilities amounting to US$34.03 billion.

Shareholders' fund was marginally lower at US$20.09 billion (FY2023: US$20.17 billion) as a result of a strengthening US Dollar which led to lower translation reserve as of 31 March 2024.

Outlook

Despite the challenges faced across most of our businesses during the quarter, results for 1Q2024 are satisfactory. The global economic outlook is expected to remain uncertain throughout 2024 and we foresee the difficult operating conditions to continue into the year. Nevertheless, with our diversified and integrated business model, we expect results for the rest of the year to remain satisfactory.

29 April 2024

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Disclaimer

Wilmar International Limited published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 09:58:09 UTC.