Wilmar International Reports 9.9% Jump in Core Profit Amid China Demand and India Consolidation

Strong Performance Across Industrial and Consumer Segments

Wilmar International reported core net profit of US$641.5 million for the six months ending June 30, marking a 9.9 percent increase from US$583.7 million a year earlier, according to the company's August 12 announcement. The Singapore-listed agribusiness conglomerate, one of the world's largest food producers, attributed the gains to robust demand in its feed and industrial products divisions and the full integration of its Indian consumer goods operations.

The feed and industrial products segment delivered the sharpest growth, with earnings climbing 55 percent year-on-year. Higher throughput volumes and improved refining margins in tropical oils processing drove the division's performance, while stronger feed demand in China spurred increased soybean crushing activity across Wilmar's mainland facilities.

China's hog and poultry sectors have been rebuilding capacity following earlier disease outbreaks, creating sustained appetite for imported soybeans and domestically crushed meal. Wilmar's crushing footprint in the country positions it to capture margin expansion when import costs moderate relative to finished feed ingredient prices.

AWL Consolidation Lifts Food Products Earnings

Wilmar's food products unit posted a 56 percent rise in earnings, supported by higher sales volumes, gains from asset disposals, and the consolidation of AWL Agri Business results since December. The Indian consumer goods joint venture, previously shared with the Adani Group, came under full Wilmar control in a US$1.3 billion transaction completed in 2025, according to the company.

The deal gave Wilmar direct ownership of edible oil and packaged food brands in India, eliminating the need to share profits and allowing tighter integration with its upstream refining operations. AWL's contribution to the first-half results reflects a full six months of consolidated earnings, compared to zero contribution in the prior-year period when the venture remained under joint ownership.

India's edible oil market, the world's largest by consumption, has been a strategic priority for Wilmar. The country imports roughly two-thirds of its edible oil needs, creating opportunities for integrated players with both refining capacity and consumer distribution networks.

Dividend Increase Signals Confidence

Wilmar proposed an interim dividend of US$0.05 per share, up from US$0.04 a year earlier, according to the announcement. The 25 percent increase in the payout reflects management's confidence in cash generation and capital allocation flexibility despite ongoing volatility in commodity markets.

The company's balance sheet has absorbed the AWL acquisition and continued capital expenditure in crushing and refining capacity without material strain. Free cash flow generation in the first half supported both the dividend increase and working capital needs tied to higher commodity prices and inventory levels.

Outlook and Regional Dynamics

Wilmar's first-half performance underscores the resilience of diversified agribusiness models in Asia, where rising incomes drive demand for both animal protein and packaged consumer foods. The company's vertical integration, from oilseed crushing to branded consumer products, allows it to capture margin at multiple points in the value chain.

China's continued recovery in livestock feed demand will be a key variable in the second half, particularly if African swine fever remains contained and hog inventories stabilize. India's edible oil consumption, meanwhile, is expected to grow in line with population and per capita income trends, supporting volume growth in Wilmar's newly consolidated consumer business.

Refining margins in tropical oils remain sensitive to palm oil supply dynamics in Indonesia and Malaysia, where weather patterns and labor availability can swing production. Wilmar's scale and geographic footprint provide some cushion, but margin volatility is structural to the industry.

The company's ability to sustain earnings growth will depend on managing input cost inflation, maintaining operational efficiency across a sprawling asset base, and executing further brand-building initiatives in India's competitive consumer market.