Fengyi International's net profit fell 39.4% year-on-year to US$590.2 million (approximately S$789.86 million), and the group's net profit fell 23.3% to US$1.169.8 million for the whole year.

Wilmar International announced its results after the market closed on Thursday (February 20). According to the performance, the group's revenue in the second half of fiscal year 2024 increased by 5.3% year-on-year to US$36.444.5 million, and its annual revenue rose by 0.3% to US$67.379.1 million.

The group pointed out that net profit fell year-on-year in the second half of the year, mainly due to the failure to repeat the US$231 million in one-time profits obtained by selling Moroccan sugar maker Cosumar in fiscal year 2023. In addition, the Group generated a net loss of US$22.8 million in the share swap transaction with Chinese associate and joint venture Luhua in the second half of fiscal year 2024.

The Group's second half of the year fell 39.1% to 9.5 cents year-on-year, and its full-year earnings per share fell 23.4% to 18.7 cents.

The group's board of directors recommends paying a final dividend of 10 cents per share, plus the 6 cents per share dividend that has been paid in August last year, the total dividend in fiscal year 2024 reached 16 cents, a decrease of 1 cent year-on-year from fiscal year 2023.

Further reading

Guo Kongfeng, President of Fengyi International, increased his stake in three times a week

Guo Kongfeng, President of Fengyi International, increased his stake in three times a week

By business segment, the group's pre-tax profit in the second half of the year increased by 68% year-on-year to US$355.8 million, while the feed and industrial products sectors (tropical oils, oilseed cereals and sugar) profit was US$295.4 million. A year-on-year decrease of 44%. The contribution of the oilseed business has improved, but the sugar industry's trade activities have performed weakly, and the tropical oil and fat business continues to face a challenging operating environment.

The planting and sugar plant business unit's pre-tax profit increased by 4% in the second half of the year compared with the same period last year, mainly due to the rise in palm oil prices, which promoted the performance of the palm plantation business. However, this increase was partially offset by the adverse weather conditions, and the decline in fresh fruit bunch production and output.

Guo Kongfeng, Chairman and President of Fengyi International, said that despite the challenging operating environment, most of the businesses achieved profit growth in fiscal 2024. “However, this increase was offset by the weaker sugar trade business in the feed and industrial products sectors.”

He said that the group will continue to expand its market share in the food business segment in the next year.

Fengyi International's stock price rose 0.94% on Thursday, closing at 3.21 yuan.