Agribusiness group Wilmar International F34 -0.5%   announced record earnings of US$2.4 billion ($3.2 billion) for FY2022 ended December 2022. This represents a 27.1% growth from US$1.9 billion in FY2021.

 

In its media release, the group mentioned that all of its key segments reported higher profits. And non-operating items and changes in fair value of biological assets, core net profit for FY2022 improved 31% to US$2.42 billion.

 

The record earnings came on the back of revenue gaining 11.6% y-o-y to US$73.4 billion from US$66.8 billion a year ago.

 

For the 2HFY2022 period, earnings came in 8.6% higher y-o-y at US$1.2 billion, while revenue was 2.8% higher y-o-y at US$37.3 billion. The better earnings were thanks to the feed and industrial products segment which performed strongly, with segment profits soaring by 35% to about US$1.1 billion.

 

The robust segment performance was led by sustained good performance from the tropical oils business and better margins from sugar merchandising activities, though these were partially impacted by weaker crush margins from the oilseeds business.

 

However, the food products segment reported lower profits in 2HFY2022 due to lower contributions from bulk products despite margin improvements in both consumer products and medium pack businesses as a result of upward price adjustments introduced since mid-2022. Plantation and sugar milling segment also contributed favourably to the group&rsquo s performance despite lower palm oil prices during the period.

 

In addition, stronger share of results from the group&rsquo s joint ventures and associates in China, Europe and India, together with lower effective tax rate during the period, further boosted its results.

 

As at Dec 31, 2022, cash and cash equivalents stood at US$2.9 billion.

 

During the period, the group declared a final divided of 11 cents per share. Along with the 6 cents interim dividend declared previously, total dividend for the FY2022 period stands at 17 cents, higher than the previous year&rsquo s 15.5 cents. This represents the highest ordinary cash dividend by the group since listing.

 

Kuok Khoon Hong, chairman and CEO of Wilmar says: &ldquo FY2022 was an exceptional year. Our team managed our operations well despite the volatility in the commodities markets and general economic slowdown during the past year. We benefitted from increased palm oil and sugar prices, good palm processing margins and higher shipping profit due to increased freight rates.&rdquo

 

&ldquo FY2023 will be challenging as plantation profits and palm processing margins are expected to be under pressure but China should perform better due to the ending of its zero-Covid policy. We will continue to build on our strategy and work towards expanding our footprint in the food and agri-business globally, as well as strengthening the integration across the various segments of our business. Our team will do its best to meet the challenges and barring unforeseen circumstances, we are reasonably confident that FY2023 results will be satisfactory,&rdquo he adds.