Wilmar Posts 2.3% Profit Rise Despite Commodity Market Turbulence

First-Half Performance Climbs Modestly

Wilmar International recorded net profit of US$608.9 million for the six months ended June 30, up 2.3 percent from US$594.9 million a year earlier, according to the company's announcement on August 12. Revenue climbed 17.2 percent to US$38.6 billion from US$32.9 billion in the prior year period.

The Singapore-listed agribusiness group credited the profit increase to improved performance in its food, feed and industrial products divisions. Those gains were partially offset by weaker results from plantation operations and sugar milling activities.

Earnings per share rose to US$0.098 from US$0.095 year-on-year. The company declared an interim dividend of S$0.05 per share, up from S$0.04 previously, payable on September 2.

Acquisition Reshapes Top Line

Much of the revenue growth stemmed from the consolidation of Mumbai-listed AWL Agri Business, which became a Wilmar subsidiary in December 2025. Higher selling prices across most product categories during the period provided additional support to the top line.

The AWL acquisition also contributed to the food products segment's stronger showing. That division benefited further from a gain on disposal of joint ventures in China during the first quarter of 2026, alongside improved sales volumes.

Wilmar's feed and industrial products segment saw its tropical oils business record better volumes and refining margins. The oil seeds and grains operations posted a 6 percent rise in sales volumes, driven by increased soybean-crushing activity as feed demand climbed in China.

Headwinds in Sugar and Palm

The plantation and sugar milling business faced pressure from softer sugar prices during the half. Wilmar recorded a US$24.7 million impairment loss on its sugar milling assets in India, adding to the segment's challenges.

Palm plantation operations saw fresh fruit bunch production volumes drop 6 percent, primarily due to lower crop yields in Indonesia. The company also recorded higher mark-to-market losses on investment securities.

Contributions from associates and joint ventures declined, partly reflecting the absence of results from AWL following its transition to subsidiary status. The segment was further impacted by weaker performance from investments in Europe and Southeast Asia.

Navigating Geopolitical Uncertainty

Chief executive Kuok Khoon Hong noted that the results came against a backdrop of heightened volatility in commodity markets, stemming from conflict in the Middle East. He said management expects operating conditions to remain uncertain due to continuing geopolitical developments.

In April, Wilmar indicated it anticipated certain indirect impacts from the Middle East situation but expressed confidence in its operational structure to manage the challenges.

Kuok emphasized the company's integrated business model, diversified operations and broad geographical footprint as sources of resilience. Barring unforeseen circumstances, the group expects full-year results to be satisfactory, he added.

Wilmar shares closed at S$3.94 on August 12, down S$0.02 or 0.5 percent, before the results were released. The company's ability to balance segment performance across volatile commodity cycles will remain central to investor confidence as the second half unfolds.