Wilmar’s Nine-Month Cash Flow Falls 67% Despite a Profit Rebound

Wilmar International (SGX: F34) reported a sharp rise in profit for the nine months ended 30 September 2026. For dividend investors, the less reassuring figure in its 28 October summary is operating cash flow: it fell 66.7% to US$1.29 billion from US$3.88 billion a year earlier. [S3, p. 1] [S3, p. 2]

That extends the cash-flow concern raised by Wilmar’s first-half results. The new quarter brought in more operating cash than the first six months combined, but the nine-month total remains far below last year’s. Wilmar has not announced a new dividend in the third-quarter summary; the five-Singapore-cent interim dividend covered the first half, with a payment date scheduled for 2 September 2026. That date is a past timetable, not evidence in these filings that payment occurred. [S3, p. 1] [S4, p. 11] [S4, p. 27] [S4, p. 34]

Why the profit rebound needs context

Profit attributable to Wilmar’s owners reached US$889.9 million for the nine months, against US$247.3 million in 2025. Yet Wilmar’s core net profit, its adjusted earnings measure, slipped 3.4% to US$908.8 million. The difference matters: the reported profit comparison includes a weak 2025 third quarter, when Wilmar recognised a US$712.3 million compensation expense to the Indonesian government. A larger reported profit is therefore not, by itself, evidence of stronger recurring dividend capacity. [S3, p. 1] [S3, p. 2]

The latest quarter also points to pressure in the businesses. Third-quarter core net profit fell 25.2% to US$267.3 million. Wilmar attributed the decline to higher raw-material costs in Food Products, weaker soybean-crushing margins in Feed and Industrial Products, and lower contributions from joint ventures and associates. Its China subsidiary Yihai Kerry Arawana separately reported a 46.42% fall in third-quarter profit attributable to its owners. That subsidiary figure is in renminbi and should not be added to Wilmar’s US-dollar group profit. [S3, p. 1] [S1, p. 1]

Cash improved during the quarter, but trails last year

Wilmar generated US$768.9 million of operating cash flow in the third quarter, compared with US$521.9 million across the first half. The sequential improvement is useful, though the third-quarter amount was still 63.7% below the comparable 2025 quarter. [S3, p. 1] [S4, p. 11]

For the nine months, cash flow before working-capital changes rose to US$3.23 billion from US$2.07 billion. Wilmar said higher commodity prices increased the cash needed to fund working capital, leaving the much smaller US$1.29 billion net operating inflow. These are different cash-flow measures: the higher pre-working-capital figure is not cash freely available for dividends. The first-half cash-flow statement also shows interest and tax payments between cash generated from operations and final operating cash flow. [S3, p. 1] [S3, p. 2] [S4, p. 11]

What to watch for the next payout

Net debt stood at US$20.42 billion on 30 September, about US$459 million above its December 2025 level, while Wilmar reported a stable net gearing ratio of 0.91 times. The third-quarter summary does not provide an updated capital-expenditure figure, so these disclosures cannot establish whether nine-month operating cash covered investment and distributions. [S3, p. 1] [S3, p. 2]

Wilmar’s August interim dividend was higher than a year earlier, but the October figures do not yet support assuming another increase. The next full cash-flow and dividend disclosures should show whether the quarterly cash recovery persists, how much investment it must fund, and whether debt remains steady as working-capital needs change. [S4, p. 27] [S3, p. 1] [S3, p. 2]