How to Earn $357.2 Million and Lose $347.7 Million at the Same Time: 4 Surprising Lessons from Wilmar International’s Financial Report

Introduction: The Financial Puzzle

Imagine a company report showing a massive 71.6% surge in core operational profit. It seems like the company is firing on all cylinders. Then, you flip to the next page and see a staggering net loss of $347.7 million for the exact same period.

How can a company be so successful and so unsuccessful at the same time? This isn’t a hypothetical puzzle; it’s the real story hidden within Wilmar International’s recent financial summary. Behind these seemingly dry numbers is a fascinating lesson in what really drives a company’s bottom line.

This article will unpack the four key takeaways from this report, revealing how a booming business can be overshadowed by a ghost from the past, why a massive loss doesn’t always signal trouble, and why the most important number is rarely the one in the headline.

Takeaway 1: The Tale of Two Profits

A Company’s Health Isn’t a Single Number.

The first step in solving this puzzle is understanding that “profit” can mean different things. In this report, two key figures tell two very different stories.

First, the company’s Core Net Profit for the third quarter of 2025 was **US357.2 million**. This represents a massive **71.6% increase** from the US208.1 million earned in the same quarter last year. This number reflects the health of the company’s actual, day-to-day business operations—making and selling its products. By this measure, the company is thriving.

However, the report also shows a final Net Loss of **US347.7 million**. This is a dramatic reversal from the US254.4 million net profit reported in the same quarter of 2024. This is the number that makes the headlines, and it paints a grim picture. This chasm between operational success and accounting reality is where the real story lies.

Takeaway 2: The Engine Under the Hood is Humming

The Core Business is Actually Booming.

Despite the headline loss, the company’s underlying business operations are performing exceptionally well. Looking past the final net loss figure reveals a business with strong momentum and growing sales. The operational successes for the quarter are clear and significant:

• Growing Sales Volume: Overall sales volume for the Food Products segment grew by 6.5%, and the Feed and Industrial Products segment grew by 3.2%. More products are being sold across the board.
• Strong Segment Performance: The report notes that stronger operational results were seen across all the Group’s core business segments.
• Specific Wins: The strong performance was driven by tangible successes, including better results in China’s oil, flour, and rice businesses; higher soybean crushing margins thanks to abundant South American harvests; higher sales volume in tropical oils; and favourable contributions from the palm plantation business as prices remained steady.

These details show that the part of the company responsible for generating revenue and managing costs is not only healthy but accelerating.

Takeaway 3: The $712 Million Ghost of Quarters Past

A Single Legal Ruling Wiped Out All the Gains.

So, what caused the dramatic swing from a healthy core profit to a huge net loss? The answer is a single, non-operational event rooted in the past.

The company had to make a payment of IDR 11.88 trillion, which is approximately **US712.3 million**. This payment was not related to poor sales or high costs in the current quarter. Instead, it was the result of an Indonesia Supreme Court decision concerning actions the company took back in FY2021 during a cooking oil shortage. This single US712.3 million payment was so immense that it not only erased the entire US$357.2 million in core operational profit but dragged the company’s final result down by another $355.1 million.

This one-time event, an echo from a previous fiscal year, was so large that it completely erased the quarter’s strong operational profits and pushed the company’s final bottom line deep into the red. The company’s own outlook summary highlights this unfortunate impact:

Operating results for 3Q2025 have improved from last year but the Group’s overall results were unfortunately impacted by the compensation imposed on our Indonesia operations during the quarter.

Takeaway 4: The Counter-intuitive Debt Diet

In a Loss-Making Quarter, They Actually Reduced Debt.

Perhaps the most surprising takeaway is that even while posting a significant net loss, the company managed to strengthen its financial position in a key area: debt.

The report shows that the company’s **net debt was reduced to US16.48 billion** as of September 30, 2025. This is a substantial decrease from the US18.64 billion it held at the end of 2024.

The reason for this is unrelated to the court ruling or even its profits. It was due to the “continued softening of soybean and sugar prices.” In simple terms, because the raw materials the company needs to buy were cheaper, it required less cash to run the business. This operational efficiency not only reduced net debt but also improved the company’s net gearing ratio from 0.94x to 0.82x. Furthermore, with nearly $37 billion in unused banking facilities, the company maintains robust liquidity, demonstrating a financial resilience that the headline loss completely obscures.

Conclusion: Look Deeper Than the Headline

This financial report is a powerful reminder that a single number, especially a headline figure like Net Profit, rarely tells the whole story of a company’s health. A deeper look reveals a business with strong, growing operations that was sideswiped by a one-time event from its past. At the same time, it managed to reduce its debt load, strengthening its balance sheet.

The company states it is “cautiously optimistic” that its performance for the rest of the year will be satisfactory. This case study shows the importance of separating a company’s ongoing operational health from isolated financial events. The next time you see a shocking financial headline, will you remember to ask what’s hiding in the fine print?

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