Singapore's Wilmar Q1 profit drops 14%; flags challenging conditions in 2024

Singapore-listed Wilmar International F34 reported a 14% drop in its first-quarter net profit on Monday, hurt by weak performance from its feed and industrial products segment, and flagged difficult operating conditions for the rest of the year.

"Global economic outlook is expected to remain uncertain throughout 2024 and we foresee the difficult operating conditions to continue into the year," the company said in a statement.

The food producer expects results for the rest of the year to be satisfactory.

The company, one of the world's largest food producers, said core net profit for the three months ended March 31 was $328.4 million, compared with $381.9 million a year ago.

Sales volume of feed and industrial products segment — the biggest profit generator for the company — was 14.6 million tonnes for the quarter, up 7%.

However, weak performance from its sugar merchandising division lowered profits for the feed and industrial products segment, the company said. Trading condition for its tropical oils and crushing businesses also remained challenging, it added.

Share of profits from joint ventures and associates during the quarter was also reduced due to investments in China, the company said.