Wilmar’s net profit fell 25% on higher costs in Q3 FY 2026
Wilmar attributed the weaker results mainly to higher feedstock costs in its food products business and lower soybean crushing margins in its feed and industrial products segment.
SINGAPORE – Wilmar International Limited reported a 25.2% year-on-year decline in core net profit to US$267.3 million for the third quarter of 2026, as higher raw material costs, weaker soybean crushing margins and pressure across its food and feed businesses weighed on earnings.
The Singapore-based agribusiness group recorded revenue of US$21.66 billion for the three months ended September 30, 2026, up 13.6% from US$19.07 billion in the same period last year.
Reported net profit reached US$281 million, compared with a net loss of US$347.7 million in the third quarter of 2025.
However, the previous year’s results included a US$712.3 million compensation expense paid to the Indonesian government.
Excluding this exceptional charge, net profit fell 22.9% to US$364.6 million a year earlier, highlighting underlying pressure on the group’s profitability.
Despite the decline in core earnings, earnings before interest, taxes, depreciation and amortization (EBITDA) increased 130.5% to US$982 million from US$426 million in the previous year’s quarter.
The company attributed the challenging performance to rising commodity prices, supply disruptions, and higher feedstock costs, which squeezed margins across several business segments.
Wilmar’s food products segment experienced higher raw material costs, while its feed and industrial products business faced weaker soybean crushing margins.
Earnings contributions from joint ventures and associates also declined, mainly because of weaker performance from the group’s soybean crushing investments in China.
The tropical oils business delivered satisfactory results despite lower sales volumes, while the palm plantation business benefited from steady palm oil prices and higher production volumes.
Sales volume in the food products segment rose 11.9% to 10.4 million tonnes, partly reflecting the consolidation of AWL Agri Business Limited, whose results have been included since December 2025.
Feed and industrial products sales volumes remained broadly stable at 18.8 million tonnes.
For the first nine months of 2026, Wilmar’s revenue increased 15.9% to US$60.22 billion.
Net profit rose to US$889.9 million from US$247.3 million in the corresponding 2025 period, when the exceptional compensation expense significantly affected earnings.
Core net profit, however, declined 3.4% to US$908.8 million.
Looking ahead, Wilmar expects operating conditions to remain challenging amid volatile commodity prices, supply disruptions and higher input costs.
The company remains cautiously optimistic that its diversified operations, cost management initiatives and focus on operational efficiency will support satisfactory performance for the remainder of the year.
Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
