Wilmar International Limited · SGX:F34
Wilmar International — FY2023 Earnings Presentation
22 slides from Wilmar International's earnings presentation, Feb 21, 2024
Slide 1: Wilmar International Limited FY2023 Results Briefing
WILMAR INTERNATIONAL LIMITED FY2023 Results Briefing February 21, 2024
Slide 2: Important Notice
IMPORTANT NOTICE Information in this presentation may contain projections and forward looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may cha
Slide 3: Agenda
Agenda 1 FY2023 Financial Performance – Key Takeaways 2 Business Outlook 3 Appendix 2
Slide 4: FY2023 Financial Performance – Key Takeaways
FY2023 Financial Performance – Key Takeaways
Slide 5: Earnings Highlights
Earnings Highlights vs 2H2022 vs FY2022 2H2023 (US$m) FY2023 (US$m) Revenue 34,617 -7% 67,155 -9% EBITDA 2,309 -3% 3,963 -16% Profit Before Tax 1,259 -16% 1,956 -37% Net Profit 974 -21% 1,525 -37% Core Net Profit 989 -22% 1,567 -35% Earnings per share 15.6 -21% 24.4 -36% in US cents (fully dilut
Slide 6: Earnings Highlights – Segment Results (PBT US$m)
Earnings Highlights – Segment Results (PBT US$m) 2H2023 2H2022 ∆ FY2023 FY2022 ∆ Food Products 212.3 208.6 2% 294.9 730.1 -60% Feed and Industrial Products 527.7 1,056.4 -50% 926.7 1,559.5 -41% Plantation and Sugar Milling 437.2 133.5 >100% 500.1 569.3 -12% Others (25.0) 0.8 n.m. (55.2) 3.6 n.m. Joi
Slide 7: Sales Volume by Business Segment ('000 MT)
Sales Volume by Business Segment (‘000 MT) 2H2023 2H2022 ∆ FY2023 FY2022 ∆ Food Products 16,103 15,242 6% 30,682 29,067 6% Consumer Products 4,039 4,216 -4% 7,970 8,487 -6% Medium Pack and Bulk 12,064 11,026 9% 22,712 20,580 10% Feed and Industrial Products 33,348 30,841 8% 61,269 55,615 10% Tropica
Slide 8: Cash Flow Highlights
Cash Flow Highlights US$ million FY2023 FY2022 Operating cash flow before working capital changes 2,953 3,951 Add/(less): Changes in working capital, interest (paid)/received 932 (1,903) and income taxes paid Acquisitions of subsidiaries, joint ventures and associates (298) (141) Capital expenditure
Slide 9: Commodity Price / Net Debt
Commodity Price / Net Debt 20,000 1,400 1,172 19,000 1,075 1,200 18,000 17,000 1,000 Commodity price (US$/MT) 837 Net debt (US$m) 16,000 800 669 15,000 570 525 520 505 600 14,000 350 13,000 327 18,747 400 17,238 17,652 12,000 13,605 13,219 200 11,000 10,000 0 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec
Slide 10: Gearing
Gearing US$ million As at As at Dec 31, 2023 Dec 31, 2022 Debt/Equity (x) 0.88 0.94 - Net debt * 17,652 18,747 - Shareholders’ funds 20,173 19,986 Adjusted debt/Equity (x) 0.37 0.30 - Liquid working capital ** 10,174 12,662 - Adjusted net debt 7,478 6,085 - EBITDA 3,963 4,734 Net debt/EBITDA (x) 4.4
Slide 11: Business Outlook
Business Outlook • Following an exceptional year in FY2022, we recorded a satisfactory set of results in FY2023 despite headwinds faced across various businesses during the year. We expect the tough operating conditions to continue into FY2024. Tropical oils margins are expected to remain depressed,
Slide 12: Appendix
Appendix
Slide 13: Business Segment results: Food Products
Business Segment results: Food Products (Consumer Products, Medium Pack and Bulk) 2H2023 2H2022 ∆ FY2023 FY2022 ∆ Revenue (US$ million) 14,158.3 15,600.7 -9% 28,326.4 31,516.4 -10% Consumer Products 5,287.6 6,175.5 -14% 11,057.2 12,874.0 -14% Medium Pack and Bulk 8,870.7 9,425.2 -6% 17,269.2 18,
Slide 14: Business Segment results: Feed and Industrial Products
Business Segment results: Feed and Industrial Products (Tropical Oils, Oilseeds and Grains, and Sugar) 2H2023 2H2022 ∆ FY2023 FY2022 ∆ Revenue (US$ million) 21,959.7 22,885.0 -4% 41,369.2 44,545.6 -7% Tropical Oils 11,414.8 13,219.0 -14% 22,430.1 27,276.3 -18% Oilseeds and Grains 5,542.2 6,121.8
Slide 15: Business Segment results: Plantation and Sugar Milling
Business Segment results: Plantation and Sugar Milling 2H2023 2H2022 ∆ FY2023 FY2022 ∆ Revenue (US$ million) 2,090.7 2,559.6 -18% 3,980.6 4,737.3 -16% Oil Palm Plantation 1,061.4 1,712.5 -38% 2,482.7 3,441.4 -28% Sugar Milling 1,029.3 847.1 22% 1,497.9 1,295.9 16% Sales volume (‘000 MT)# 2,686 2
Slide 16: Plantation and Sugar Milling (Oil Palm Plantation Statistics)
Business Segment results: Plantation and Sugar Milling (Oil Palm Plantation Statistics) 2H2023 2H2022 ∆ FY2023 FY2022 ∆ Planted area (ha) 230,135 231,697 -1% 230,135 231,697 -1% Mature area harvested (ha) 211,862 211,136 0% 211,862 211,136 0% FFB production (MT) 2,370,703 2,301,672 3% 4,450,452 4,43
Slide 17: Plantation Age Profile
Plantation Age Profile in hectares Average Age of Plantation 31 Dec 2023 0 - 3 yrs 4 - 6 yrs 7 - 14 yrs 15 - 18 yrs >18 yrs Total Indonesia 10,136 13,410 31,730 69,554 26,074 150,904 Malaysia 6,192 18,514 17,716 5,817 10,655 58,894 Africa - 6,564 12,014 1,033 726 20,337 Total planted area 16,328 38,
Slide 18: Non-Operating Items
Non-Operating Items US$ million 2H2023 2H2022 FY2023 FY2022 Foreign exchange loss in respect of intercompany loans to (7.0) (11.1) (19.3) (16.1) subsidiaries Net fair value loss on investment securities at fair value through profit (16.5) (13.4) (33.7) (15.9) or loss Gain on disposal of investment s
Slide 19: Cash Flow
Cash Flow US$ million FY2023 FY2022 Operating cash flow before working capital changes 2,953 3,951 Add/(less): Changes in working capital, interest (paid)/received 932 (1,903) and income taxes paid Acquisitions of subsidiaries, joint ventures and associates (298) (141) Capital expenditure (2,281) (2
Slide 20: Cash Flow – Cont.
Cash Flow – Cont. • Inventories decreased by 11% to US$11.80 billion as at 31 December 2023 mainly as a result of lower commodity prices and inventory turnover during the current year. Average turnover days decreased to 67 days in FY2023 (FY2022: 69 days). • Trade receivables decreased by 3% to US$6
Slide 21: Funding and Liquidity
Funding and Liquidity As at Dec 31, 2023 US$ million Available Utilised Balance Credit facilities : Committed 11,418 8,583 2,835 Trade finance 48,620 21,831 26,789 Short term 1,411 287 1,124 Total credit facilities 61,449 30,701 30,748 Available facilities 30,748 Available cash not pledged 4,381 Tot
Slide 22: Key Indicators
Key Indicators As at As at Dec 31, 2023 Dec 31, 2022 Return on Average Equity# 7.6% 12.0% Return on Invested Capital# 5.6% 7.3% in US cents EPS (fully diluted) 24.4 38.3 NTA per share 238.5 233.6 NAV per share 323.1 320.2 in Singapore cents Dividends (interim & final) 17.0 17.0 # Formulas : Return o