Wilmar International 2023 Results Preview

by Warren Seah

Wilmar International 2023 Results Preview

Net Profit Forecast

Wilmar International, a Singapore-listed agribusiness company, is set to report its 2023 results on Wednesday. Analysts expect a full-year net profit of $1.28 billion, a significant decrease from the previous year’s $2.40 billion. Challenges in its China operations and the palm oil-refining business have impacted these figures.

Revenue Forecast

Revenue for Wilmar is estimated to be $68.82 billion for 2023, down from $73.40 billion in 2022.

Stock Performance

In the fourth quarter, the stock experienced a 4.3% decline, with shares trading at 3.24 Singapore dollars on Tuesday afternoon.

Key Highlights to Watch

Tailwinds and Growth in China Nomura research analyst Raghavendra Divekar believes that Wilmar likely saw positive growth in the final quarter of the year, driven by sales volume growth in China. China contributed approximately 51% of the company’s revenue in 2022, with operating conditions improving. Investors will closely monitor these developments.

Allegations and Sentiment A Shenzhen-listed subsidiary of Wilmar, Yihai Kerry Arawana, faced allegations of involvement in a China palm oil fraud in January. Analysts from UOB Kay Hian expect short-term negative sentiment due to these allegations. However, if Wilmar is cleared from any association with the fraud, a positive trajectory for the company’s share price is anticipated.

Stay tuned for Wilmar International’s 2023 results announcement for further insights into the company’s performance and outlook.

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