“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.
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.
