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Singaporean agri-business Wilmar International's first half profit inched higher, reflecting better performance at its food products segment and helped by higher earnings from the Adani Wilmar joint venture.

Adani Group has reportedly been in talks with Wilmar over the sale of a minority stake worth $670 million in the joint venture.

Wilmar, the Singapore-headquartered food conglomerate co-founded by billionaire Kuok Khoon Hong in 1991, on Tuesday reported a first-half core net profit of $606.3 million, compared with $577.2 million a year earlier.

Its food product division, which includes consumer products, logged a 77% jump in pre-tax profit, buoyed by higher sales volume.

The company's share of results from joint ventures and associates, however, declined 58% to $83.2 million for the six months.

Wilmar's another top segment, its feeds and industrial unit that processes, manufactures and distributes agricultural commodities, among others, reported a 34% jump in first-half pre-tax profit to $534 million.

Hong, who also serves as the firm's CEO and chairman, flagged that refining margins for tropical oils are expected to remain challenging while demand for soybean products is eyed to improve.

Wilmar's shares are currently down about 1% at S$3.01 and analysts have previously flagged that the firm's valuation will likely remain suppressed until any significant earnings turnaround.

Wilmar predominantly operates in the plantation segment, which has recently faced issues over rising costs and poor prospects of expansion.

"With headwinds like lower yields, older trees, environmental pressures, higher costs, labour issues and lower profitability, the sector has to find ways to circumvent these," analysts at RHB said in a note.

RHB also reduced its fiscal 2025 earnings forecast on the firm by 11%, reflecting falling margins and a slow recovery in China operations.