SINGAPORE (Aug 12): UOB is maintaining its “sell” call for Wilmar International with a target price of $3.05 as the agri-business group reported its first ever quarterly net loss.
In 2Q16, Wilmar reported a core net loss of US$220 million ($296 million) compared to a profit of US$185 million a year ago, dragged down by losses in its manufacturing business within the oilseeds & grains division, as well as the sugar segments.
The oilseeds & grains division suffered its first quarterly loss of US$344 million, due to untimely purchases of soybeans in a highly volatile market. Thankfully, this was mitigated by stable performance from the consumer products business.
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