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Business Times
7 days ago
- Business
- Business Times
Wilmar H1 profit rises 2.6% on improved plantation, sugar milling and food product segments
[SINGAPORE] Agribusiness Wilmar Internationa l on Tuesday (Aug 12) reported a net profit of US$594.9 million for the first half ended Jun 30, up 2.6 per cent from US$579.6 million in the year-ago period. This was attributed to stronger performances in its plantation and sugar milling, which rose on the back of higher palm oil prices and fresh fruit bunch production. Wilmar's food product segments also turned in a strong performance, due to improved sales in the flour and rice businesses in China. Contributions from the company's associations and joint ventures also more than doubled in H1, compared to a year ago. This was especially due to the group's investments in Asia. However, these improvements were partially offset by lower contributions from the feed and industrial products segment, said Wilmar. Revenue was also up 6.3 per cent to US$32.9 billion, from US$30.9 billion, for the first half of the financial year on the back of higher revenue across most of the group's business divisions. Earnings per share was US$0.095 for the six months, up from US$0.093. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The group declared an interim dividend of S$0.04 per share, a drop from S$0.06 per share. The dividend will be paid on Aug 28. Kuok Khoon Hong, CEO of Wilmar said that the group's first half results have improved despite 'difficult operating conditions'. 'Refining margins for the tropical oils business are expected to remain challenged, while the plantations business should be favourable for the rest of the year. Our crushing operations are expected to remain stable,' said Kuok. He added that Wilmar's full-year results will depend on the resolution of various issues relating to its operations in Indonesia. In June, the company was embroiled in Indonesian court proceedings involving a palm-oil graft case . In July, Indonesian authorities launched a probe into major rice producers , including Wilmar's unit, over alleged mislabelling practices. Said Kuok: 'Barring unforeseen circumstances, we are cautiously optimistic that the performance of our core segments will be satisfactory.' Shares of Wilmar closed flat at S$2.97 on Tuesday, before the announcement.
Straits Times
23-06-2025
- Business
- Straits Times
Wilmar expands in Nigeria as nation's currency crisis ebbs
Wilmar last week announced a plan to acquire all the shares in a palm oil venture with PZ Cussons for US$70 million. PHOTO: AFP Lagos - Wilmar International, the Singapore-listed agribusiness, plans to boost its palm oil business in Nigeria, wooed by policies that have helped stabilise the naira and bolstered the availability of US dollars in Africa's most populous nation. The company, led by billionaire Kuok Khoon Hong, last week announced a plan to acquire all the shares in a palm oil venture with PZ Cussons for US$70 million (S$90 million). Wilmar also acquired 8,500 hectares of old rubber plantations to grow crop that will produce edible oil, according to Santosh Pillai, chief executive officer of Wilmar's African unit. The investment shows confidence that the steps Nigerian President Bola Tinubu has taken to revive economic growth and improve government finances may be working. Nigeria's foreign exchange reserves have increased, inflation has moderated and the naira has stabilised. In May, Moody's upgraded the country's foreign currency debt rating. It raised its credit rating for the nation to B3, six notches below investment grade, from Caa1, and changed the outlook to stable. 'The landscape is beginning to shift,' Mr Pillai said in an email response. 'Policy changes, particularly greater stability in the naira and improved access to foreign exchange – are creating a more viable environment for long-term investment. Wilmar remains committed to driving sustainable growth in Nigeria's palm oil sector.' Wilmar is growing its palm oil plantations in Nigeria's Cross River state as it focuses on supplying the local market with the edible oil that's used to cook everything from jollof rice to yam porridge. The West African nation – with a population of more than 200 million – has a palm oil supply gap of 1.25 million tons annually, according to the Central Bank of Nigeria, which in 2019 introduced a financing programme to increase production by farmers and boost economic diversification. Still, Nigeria has struggled to boost output while rivals including Thailand and Colombia have seen production jump. The African nation has also been trying to solve farmer-herder clashes in its main food-growing regions and Islamist extremists in the northeast seem to be making a comeback. 'A significant portion of Nigeria's palm oil production still comes from small-holder farmers,' Mr Pillai said. 'Many of these plantations are over 25–30 years old, and yields are steadily declining. If these older plantations are replanted with high-yielding seedlings' Nigeria could increase its oil palm production even faster, he said. For years, Nigeria's struggle with an acute dollar shortage deterred investors, with the central bank rationing the greenback to businesses even as international companies including GSK, Bayer and Sanofi shrank their operations in the country or left altogether. President Tinubu's move to devalue the currency and allow it trade more freely, scrap fuel subsidies and boost revenue are now helping to brighten the outlook. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Bloomberg
23-06-2025
- Business
- Bloomberg
Wilmar Expands in Nigeria as the Nation's Currency Crisis Ebbs
Wilmar International Ltd., the Singapore-based food company, plans to boost its palm oil business in Nigeria wooed by policies that have helped stabilize the naira and bolstered the availability of dollars in Africa's most populous nation. The company, led by billionaire Kuok Khoon Hong, last week announced a plan to acquire all the shares in a palm oil venture with PZ Cussons for $70 million. Wilmar also acquired 8,500 hectares (21,004 acres) of old rubber plantations to grow crop that will produce edible oil, according to Santosh Pillai, chief executive officer of Wilmar's African unit.
Business Times
18-06-2025
- Business
- Business Times
Inside Wilmar's graft probe: How a cooking oil crisis led to a multitrillion rupiah corruption scandal
[SINGAPORE] Indonesian authorities in May seized 11.8 trillion rupiah (S$928 million) from global palm oil company Wilmar as part of an ongoing corruption case involving allegations of bribery to obtain palm oil export permits in 2022. The company, founded by Singaporean tycoon Kuok Khoon Hong, stands accused of earning unauthorised profits by evading state-imposed export controls that sought to curb a cooking oil crisis and domestic palm oil shortage that rocked Indonesia in 2021 and 2022. Wilmar was initially acquitted by a lower court in March, but the case is back in the limelight as the Indonesian Supreme Court reviews the earlier ruling. The Business Times traces the events that led up to Wilmar's corruption probe and its multitrillion rupiah asset seizure. Jan 18, 2022: Indonesian officials announce that palm oil exporters will be required to obtain permits for exports and to declare how much palm oil they plan to sell domestically. Jan 19, 2022: A cap limiting cooking oil prices to 14,000 rupiah per litre takes effect. The move is part of government efforts to curb the rise in domestic cooking oil prices, which had shot up as much as 40 per cent from a year earlier, in line with a global palm oil price surge. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Jan 24, 2022: The requirement that palm oil exporters obtain export permits kicks in. Apr 19, 2022: The Indonesian Attorney-General's Office (AGO) names four suspects in a corruption case linked to the issuance of palm oil export permits. One suspect is a government official from the Trade Ministry. The others are executives from three palm oil producers – North Sumatra-based Permata Hijau Group, Musim Mas Group, and Wilmar's subsidiary, Wilmar Nabati Indonesia. Apr 28, 2022: Indonesia bans the export of crude palm oil (CPO) and all its derivative products – including cooking oil – to shore up domestic supplies and ease costs, as soaring global CPO prices spur producers to export the commodity instead of selling it at home. May 23, 2022: The ban is lifted after considering improvements in local palm oil supply and prices, Indonesian authorities say. Mar 19, 2025: Four judges acquit Wilmar Group and the two other companies of charges of misconduct in obtaining export permits in 2022. Apr 12, 2025: The Indonesian AGO accuses the judges behind the acquittal of receiving bribes to clear the companies of all charges. Apr 13, 2025: Three of the judges behind the acquittal are arrested, following the earlier arrest of the fourth judge, who allegedly received 60 billion rupiah to arrange a favourable verdict for the companies. The three judges are said to have received US$1.07 million in bribes. Apr 14, 2025: Wilmar maintains its innocence, stating that its actions to increase the supply of palm oil were intended to help the government improve domestic supply and lower prices. Jun 17, 2025: The corruption case undergoes a review by the Supreme Court, which will determine if the earlier lower court ruling will stand, says the AGO, which appealed the acquittal. The AGO says the 11.8 trillion rupiah that Indonesian authorities seized from five Wilmar subsidiaries in late May is compensation for state losses arising from the graft case. Wilmar says the seized assets are a security deposit that will be returned if the Supreme Court upholds the lower court's ruling; should it rule otherwise, the sum may be forfeited in part or in whole.
Business Times
18-06-2025
- Business
- Business Times
Wilmar to buy over Nigeria-incorporated palm oil business from British JV partner for US$70 million
[SINGAPORE] Wilmar International is buying the remaining stake it does not already own in a Nigeria-incorporated palm oil business from its joint-venture (JV) partner, British manufacturer PZ Cussons, for US$70 million. Once its acquisition of the 50 per cent equity stake in PZ Wilmar held by the London Stock Exchange-listed company is complete, Wilmar will hold 100 per cent equity in the palm oil business, the group said on Wednesday (Jun 18). This purchase comes as Wilmar intends to invest in the Nigerian palm oil sector, which offers 'significant opportunity' for growth in the food and nutrition business, given the country's strong market demographics with more than 200 million consumers, said the group's chairman and chief executive Kuok Khoon Hong. 'We are bullish on the long-term potential of Nigeria's palm oil sector, given (the country's) large and growing population and suitability for palm cultivation,' he noted. Wilmar intends to continue developing the upstream palm plantation and downstream businesses in the country, he added. The conditional acquisition is slated to be completed in the last quarter of 2025, subject to relevant approvals, and will be funded by internal resources. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up It is not expected to have a material impact on the consolidated net tangible assets and earnings per share of Wilmar Group, the parent company of Wilmar International, for the financial year ending Dec 31. The transaction is also not expected to have a substantive impact on PZ Wilmar's people or operations, the group added. PZ Wilmar was established in 2010 as a JV between PZ Cussons and Wilmar International, with each holding a 50 per cent stake. It sells edible cooking oils under the brand names Mamador and Devon King's and owns minority stakes in two palm oil plantations in Nigeria, which are majority-owned by Wilmar International. PZ Wilmar's name will be changed once the transaction is complete. The group clarified that PZ Cussons' subsidiary, PZ Cussons Nigeria, does not hold shares in PZ Wilmar and will not be affected by the transaction. Shares of Wilmar fell to their lowest levels in more than five years at S$2.89 on Wednesday. As at 1.25 pm, it was trading 3 per cent or S$0.09 lower at S$2.92.
