Wilmar’s profit falls 25% as soybean crushing margins weaken

Singapore-based agribusiness company Wilmar International reported a 25.2% year-on-year decline in core net profit in the third quarter of 2026, falling to $267.3 mln from $357.2 mln. The main factors were weaker soybean crushing margins, rising raw material costs and disruptions to global supply chains. Meanwhile, the company’s revenue increased by 13.6% to $21.7 bln.

Wilmar’s feed and industrial products segment faced the greatest pressure on financial performance, particularly due to declining soybean crushing margins. A sharp increase in global commodity prices and supply disruptions raised production costs, negatively affecting profitability. The company’s food products segment was also affected by higher raw material costs.

Sales volume in the feed and industrial products segment reached 18.8 mln tons in the third quarter, remaining broadly unchanged from a year earlier. Meanwhile, food products sales increased by 11.9% to 10.4 mln tons, partly supported by the consolidation of AWL Agri Business results. Wilmar’s profitability was also affected by weaker financial performance at its joint ventures and associated companies, particularly in China’s soybean crushing sector.

Wilmar’s reported net profit for the quarter stood at $281 mln, compared with a loss of $347.7 mln a year earlier. However, the previous year’s result was affected by significant one-off compensation expenses of $712.3 mln paid to the Indonesian government. Excluding these expenses, the company’s net profit in the third quarter of 2025 was $364.6 mln, indicating a deterioration in underlying profitability this year.

Wilmar expects challenging operating conditions to persist through the end of 2026 due to high raw material prices, volatile commodity markets and logistics constraints. Nevertheless, the company remains cautiously optimistic about its fourth-quarter performance, supported by its diversified business operations, cost control and improved operational efficiency. Its tropical oils operations and palm oil production are also providing some support to financial results.

Tags: soybean, oilseeds, oilseed crushing, Wilmar