The company's tropical oils business saw weaker margins in its mid and downstream operations during the second half. However, its palm plantation business performance improved on the back of higher fresh fruit bunches output.
Its most profitable segment, the feed and industrial products unit, which includes operations related to tropical oils, reported a slump in profit to $527.7 million in the second half from $1.06 billion a year earlier.
The company also flagged a weak outlook heading into fiscal 2024, anticipating that operational constraints in its tropical oils business would persist, putting pressure on its performance.
"Tropical oils margins are expected to remain depressed, sugar milling margins will be affected by lower sugar prices and operating conditions in China are expected to remain challenging," Kuok Khoon Hong, Chairman and CEO of Wilmar said in a statement.
Wilmar, one of the largest food producers in the world, said its annual core net profit dropped to $1.57 billion from $2.42 billion a year earlier.
That, however, beat analysts' average estimate of $1.30 billion, according to LSEG data.
Wilmar has proposed a final dividend of S$0.11 per share, resulting in a total dividend paid and proposed for fiscal 2023 of S$0.17, in line with last year.
(Reporting by Roushni Nair and Sneha Kumar in Bengaluru; Editing by Dhanya Ann Thoppil)
