Meanwhile, its midstream operation of feed and industrial — which accounts for 46% of its 2021 PBT — will see good earnings from palm oil and sugar refining. This will offset the weakness in China’s soybean crushing operation which is facing low crushing margins and crushing volumes.
Although Wilmar International may post lower profit in 2022, it will still be the outperformer among the integrated agribusiness companies, according to UOB Kay Hian Research analysts Leow Huey Chuen and Jacqueline Yow Hui Li.
In their March 11 report, the analysts note that Wilmar’s 2022 performance will be driven by palm and sugar operations. Wilmar’s upstream operation of plantations and sugar milling, which accounts for 20% of its 2021 profit before tax (PBT), is expected to perform well given high crude palm oil (CPO) and sugar prices.
