This article first appeared on GuruFocus .
Wilmar International ( WLMIF ) has absorbed a $150 million loss tied to its investment in Pakistan-listed Unity Foods Ltd., adding another layer of pressure to an already complicated year for the Asian agribusiness group. In its full-year financial statement, Wilmar disclosed a provision relating to an associated company in Pakistan, later confirmed to be Unity Foods, which operates in edible oils and rice. The company said that during 2025 it became aware Unity was experiencing difficulties servicing certain bank facilities, a development it described as unanticipated given the investee's most recently published financial statements had indicated profitability and material liquid assets.
Wilmar, which became a shareholder of Unity in 2020, emphasized that it has never managed Unity's day-to-day operations and had relied on audited accounts that previously showed solid performance. Governance turbulence at Unity appears to have intensified in recent months: founder and long-serving chief executive Farrukh Amin resigned in December, followed by the chief financial officer in January, with exchange filings not citing reasons. In February, the newly appointed CEO and two independent directors also stepped down, leaving the board without the quorum required to function. Wilmar said information later emerged pointing to material uncertainties and inconsistencies in certain financial and working capital items, and that despite multiple clarification requests, the responses received were incomplete and could not be satisfactorily reconciled.
The provision lands alongside other financial headwinds. In the same earnings report, Wilmar booked a $104 million loss linked to ongoing litigation involving a Chinese subsidiary and set aside just over $782 million for compensation payments tied to its Indonesian operations, while denying wrongdoing in both cases. Meanwhile, Unity's shares have more than halved this year and were trading at their lowest level since 2020 on Monday. Wilmar said it is seeking guidance from Pakistan regulators on whether an administrator should be appointed and an independent investigation launched, and has also asked whether Unity's shares should be suspended pending such a probe.
