Revenue is also up, increasing 6.3% to US$32.9 billion, from US$30.9 billion

 

[SINGAPORE] Agribusiness Wilmar Internationa : F34 0%l on Tuesday (Aug 12) reported a net profit of US$594.9 million for the first half ended Jun 30, up 2.6 per cent from US$579.6 million in the year-ago period.

 

This was attributed to stronger performances in its plantation and sugar milling, which rose on the back of higher palm oil prices and fresh fruit bunch production. Wilmar&rsquo s food product segments also turned in a strong performance, due to improved sales in the flour and rice businesses in China.

 

Contributions from the company&rsquo s associations and joint ventures also more than doubled in H1, compared to a year ago. This was especially due to the group&rsquo s investments in Asia.

 

However, these improvements were partially offset by lower contributions from the feed and industrial products segment, said Wilmar.

 

Revenue was also up 6.3 per cent to US$32.9 billion, from US$30.9 billion, for the first half of the financial year on the back of higher revenue across most of the group&rsquo s business divisions. 

 

Earnings per share was US$0.095 for the six months, up from US$0.093.

 

The group declared an interim dividend of S$0.04 per share, a drop from S$0.06 per share. The dividend will be paid on Aug 28.

 

Kuok Khoon Hong, CEO of Wilmar said that the group&rsquo s first half results have improved despite &ldquo difficult operating conditions&rdquo . 

 

&ldquo Refining margins for the tropical oils business are expected to remain challenged, while the plantations business should be favourable for the rest of the year. Our crushing operations are expected to remain stable,&rdquo said Kuok.

 

He added that Wilmar&rsquo s full-year results will depend on the resolution of various issues relating to its operations in Indonesia.

 

In June, the company was embroiled in Indonesian court proceedings involving a palm-oil graft case. In July, Indonesian authorities launched a probe into major rice producers, including Wilmar&rsquo s unit, over alleged mislabelling practices. 

 

Said Kuok: &ldquo Barring unforeseen circumstances, we are cautiously optimistic that the performance of our core segments will be satisfactory.&rdquo

The case is part of a broader police probe, launched in July, into four major rice producers over alleged mislabelling

 

[JAKARTA] Indonesia&rsquo s National Police have identified three senior officials from rice producer Padi Indonesia Maju (PIM), a wholly-owned subsidiary of Wilmar International Limited, as suspects in a corruption case involving the mislabelling of rice.

 

The trio, referred to only by their initials, are suspected of having blended lower-grade medium rice with premium-grade rice and passing it off as a high-quality product. They are PIM&rsquo s president-director S, its factory head AI, and the company&rsquo s head of quality control, DO. 

 

They have been charged under Indonesia&rsquo s consumer protection law, which carries penalties of up to 20 years in prison and fines of up to 10 billion rupiah (S$786,442).

 

Helfi Assegaf, director of the National Police&rsquo s Special Economic Crimes Directorate, said on Tuesday (Aug 5) that the police had examined the testimonies of 24 witnesses, including those of experts. 

 

The case is part of a broader investigation by the National Police Food Task Force, which in July launched a probe into four major rice producers, including the Wilmar unit, over alleged mislabelling practices. PIM produces prominent rice brands for the domestic market, including Fortune, Sania, Siip and Sovia.

 

Assegaf said that the laboratory tests done revealed that the premium rice sold under the brand fell short of the quality standards stated on the packaging.

 

&ldquo Even after investigators held a meeting and issued a written warning, along with a request for clarification on Jul 8, 2025, the company&rsquo s board merely raised the issue verbally with the factory manager and made no effort to address the findings,&rdquo he said.

 

In a bourse filing on Aug 5, Wilmar denied the allegations and said it would cooperate fully with the investigation to clear its name.

 

The latest action against PIM follows the naming of suspects from rice producer and distributor Food Station, in the authorities&rsquo crackdown on fraud in the country&rsquo s rice-supply chain.

 

Indonesia has, in recent years, grappled with one of its largest food-industry scandals, with multiple government agencies collaborating to probe widespread corruption, fraud and regulatory violations in the rice sector.

 

Central to the probe are allegations that hundreds of rice brands, many produced by big names, have been repackaging low-quality or subsidised rice and selling it as premium-grade at inflated prices.

 

The National Police&rsquo s Food Task Force has seized more than 201 tonnes of mislabelled rice from warehouses and markets in its crackdown.

 

Investigations have revealed varying methods of deception: Some companies manually repackage the rice without conducting quality checks others use machinery to blend low-grade rice to mimic the texture and appearance of premium grains, news outlet Tempo reported.

 

The police have previously pegged the potential state losses from these violations at up to 99.5 trillion rupiah. President Prabowo Subianto said last week that legal action against violations of rice quality standards must proceed and be strictly enforced. The Attorney-General&rsquo s Office has already summoned six prominent rice producers suspected of orchestrating these illicit practices.

 

This rice mislabelling case adds to the growing list of legal challenges and regulatory risks facing the Wilmar Group in Indonesia.

 

In a separate matter back in June, it was announced that Wilmar had placed a security deposit of 11.8 trillion rupiah with the country&rsquo s Attorney-General&rsquo s Office. The sum was tied to an ongoing legal appeal related to alleged corruption in the issuance of palm oil export permits in 2022.

 

On Jul 18, CGS International analyst Jacquelyn Yow downgraded Wilmar International from &ldquo hold&rdquo to &ldquo reduce&rdquo , cutting the target price to S$2.70 from S$3.15. She cited growing uncertainties in Indonesia related to land seizures and ongoing investigations into alleged palm oil and rice violations.

 

Wilmar International denies allegations that it has sold adulterated rice and says that it will continue to assist with the investigations to clear its name, according to a bourse filing dated July 24.

 

The group refers to recent media reports about Indonesian authorities investigating rice producers over alleged quality fraud and price manipulation. Jakarta Globe reported that 26 premium rice brands were being investigated, with Wilmar International named as one of the 26.

 

The allegations are that low quality rice is being sold as premium products at inflated prices. Wilmar says that certain employees of the group have been called up for questioning.

 

In May, Wilmar International and its subsidiaries placed a security deposit of IDR11.9 trillion ($930 million) for &ldquo corrupt actions&rdquo carried out in 2021 during a shortage of cooking oil in the Indonesian market.

 

This was in response to the Indonesian Attorney General&rsquo s Office (AGO) bringing charges against five of Wilmar&rsquo s subsidiaries, Multimas Nabati Asahan, Multi Nabati Sulawesi, Sinar Alam Permai, Wilmar Bioenergi Indonesia and Wilmar Nabati Indonesia, for the harming of state finances, unauthorised profits and harming the business sector. The alleged actions took place during July 2021 and December 2021.

 

Later, the AGO submitted an appeal against the decision of the Central Jakarta Court to the Indonesian Supreme Court, requesting that the subsidiaries demonstrate their belief in the Indonesian judicial system and their good faith and innocence by placing a security deposit.

 

The security deposit will be returned to the subsidiaries of Wilmar if the Indonesian Supreme Court upholds the decision of the Central Jakarta Court, but may be forfeited in full or in part if the court finds against the subsidiaries.

 

The subsidiaries have maintained that all actions taken by them were done in good faith and free from any corrupt intent.