Wilmar misses annual profit target and warns of tariffs
Wilmar posted a 1.28 billion dollar core profit, missing estimates. The firm expects trade tariffs and geopolitical tensions to impact its outlook through 2026.
WILMAR INTERNATIONAL LTD reported an annual core net profit that missed market estimates, as the company cautioned that geopolitical tensions and trade tariffs would continue to cloud the outlook through 2026. The Singapore-listed firm posted a core net profit of $1.28 billion for the 12 months ended December 31, falling short of the $1.31 billion consensus forecast.
Chairman and CEO Kuok Khoon Hong noted that the company has been forced to navigate a complex global environment characterized by shifting regulatory landscapes and trade friction.
"Geopolitical tensions, trade tariffs and evolving regulatory landscapes have required us to adapt our supply chain and business model."
The United States trade policy has been a primary factor in this uncertainty. Following the implementation of 10% base tariffs in April, the market is now awaiting clarity on a proposed 15% tariff structure intended to replace levies recently struck down by the U.S. Supreme Court.
Performance across business segments was mixed. The food products segment experienced a 10% decline, weighing on the total bottom line. Conversely, the plantations and sugar milling division saw a 32% increase in profit, bolstered by higher palm oil prices and strong sugar sales volumes in the first half of the year.
The feed and industrial products segment, which includes tropical oils and grains, reported a 4% rise in pre-tax profit. While crushing margins improved and sugar merchandising generated higher income, overall sales volumes for the division fell by 1%.
Despite the earnings miss, the $1.28 billion profit was an improvement over the $1.16 billion reported in the previous year. The company has proposed a final dividend of S$0.10 per share, maintaining the payout level from the previous year declared in 2025.
