Wilmar International continue its good performance for the rest of the year

$丰益国际(F34.SI)$ 

Performance for 3Q2021

3Q2021 marked another solid quarter for the Group, with core net profit increasing by 15.0% to

US$576.4 million (3Q2020: US$501.2 million). This is the highest third quarter core results achieved

by the Group since listing. The strong performance by the Group was accomplished on the back of

better performance in both the Feed and Industrial Products, and Plantation and Sugar Milling

segments. Feed and Industrial Products performance was boosted by good manufacturing margins

and stronger demand for downstream tropical oils products during the quarter. Soybean crushing

margin was weak during the quarter but it was mitigated by reducing volume. Although soybean

crushing margin recovered from its trough, it was still below its high in 3Q2020. Firmer palm oil and

sugar prices in 3Q2021 contributed to the good performance in Plantation and Sugar Milling segment.

Food Products segment continued to be impacted by higher raw material cost during the quarter, as

time lag in selling price adjustments affected overall margins. Share of results from the joint ventures

and associates in China, India and Southeast Asia was also lower during the quarter. Net profit also

improved but by a lower percentage of 6.0% to US$568.7 million in 3Q2021 (3Q2020: US$536.4

million), as it was impacted by non-operating losses from investment securities.

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Outlook

The Feed and Industrial Products segment is expected to continue its good performance for the rest of the year as we foresee manufacturing margins for downstream tropical oils products to remain resilient. Soybeans crushing margin has improved and is expected to be positive for the rest of the year. Plantation and Sugar Milling business is also expected to benefit from firm palm oil and sugar prices. Wilmar expect Food Products segment to perform satisfactorily for the rest of the year.

Barring unforeseen circumstances, Wilmar expect results for the rest of the year to be satisfactory.

@Tiger Stars