Adani Wilmar's Singapore partner's annual profit jumps on oilseeds, grains segment strength

Singapore-listed agribusiness Wilmar International Ltd, which has a joint venture with Adani Group in Adani Wilmar, reported a 27% rise in its full-year net profit on Tuesday, underpinned by its oilseeds and grains business and overall robust performances across core segments.

The oilseeds and grains business saw the Adani Wilmar's Singapore partner's profit jump 23% over the year, as its sugar merchandising activities saw better margins, and the segment recorded better sales volumes.

Singapore-based Wilmar said last week it will continue to support the Adani Wilmar joint venture. The unit was incorporated in 1999, and is now one of India’s fastest-growing packaged-food companies, supplying essentials such as edible oil, wheat flour, rice, pulses and sugar. 

On Tuesday, Adani Wilmar's share price fell 4% to close trading at Rs 411.25, a near 30% drop from its price of Rs 572 a month ago. 

Wilmar's food products business saw full-year profit rise 6%, mainly due to a one-time gain from diluting its interest in Adani Wilmar in the first quarter. However, the segment saw slower sales in China because of the COVID-19 restrictions.

Wilmar, one of the world's largest food producers, proposed a final dividend of 11 Singapore cents per share, compared with 10.5 cents a year earlier.

"We benefited from increased palm oil and sugar prices, good palm processing margins and higher shipping profit due to increased freight rates," Chief Executive Officer Kuok Khoon Hong said in a statement.

Net profit in fiscal 2022 was $2.4 billion, compared with $1.89 billion in the year-ago period. Revenue rose 11.6% to $73.4 billion.