Analysts are positive about Wilmar International after the agribusiness giant reported earnings and revenue growth for the 1QFY2022 ended March. While the bottom line was partly lifted by one-off gains and there is also the spectre of higher material costs and slower demand, the company is guiding for a “satisfactory” FY2022.
On April 29, Wilmar reported earnings of US$530.3 million ($737.6 million) for the quarter, up 17.8% from a year ago while revenue rose 23.2% to US$17.58 billion. Besides better numbers from its plantation and sugar milling divisions, Wilmar booked a US$175.6 million gain from the IPO of its unit in India, Adani Wilmar. If the various one-off items are excluded, Wilmar would have booked core earnings of US$327.8 million, which is down 23% y-o-y and 39% q-o-q.
“Despite the tough operating environment, Wilmar expects its FY2022 earnings to be satisfactory,” says CGS-CIMB Research’s Ivy Ng in her May 4 note, where she has an “add” call and $5.69 price target.
