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Wilmar International Q3 core net profit down 25% on higher raw material costs

By Reuters News


Overview

  • Singapore agribusiness firm's Q3 revenue rose 13.6% yr/yr

  • Core net profit for Q3 declined 25% yr/yr

  • Company results impacted by higher raw material costs and weaker soybean margins


Outlook

  • Company expects operating environment to remain challenging due to commodity price volatility

  • Wilmar expects core business performance to remain resilient for the rest of the yr

  • Company is cautiously optimistic performance for rest of yr will be satisfactory


Result Drivers

  • HIGHER RAW MATERIAL COSTS - Co said increased raw material costs weighed on Food Products segment results

  • WEAKER SOYBEAN MARGINS - Co said Feed & Industrial Products segment was affected by weaker soybean crushing margins

  • AWL CONSOLIDATION - Co attributed Food Products sales volume growth to consolidation of AWL Agri Business Limited


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$21.66 bln

Q3 Core Net Income

$267.27 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the food processing peer group is "buy."

  • Wall Street's median 12-month price target for Wilmar International Limited is S$3.80, about 16.9% above its October 27 closing price of S$3.25

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 27 - India's AWL Agri Business posts quarterly profit fall as costs weigh

  • Oct 28 - Higher prices lift Danone quarterly sales, Mizone in China weighs

  • Oct 28 - Food and household brands warn of more price hikes as Iran war costs bite


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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