- At its results briefing, Wilmar (SGX:F34) explained that its solid 3Q core net profit was driven by higher plantation and downstream palm processing earnings, hedging gains, associates' contribution and lower effective tax rate.
- - Read this at SGinvestors.io -
- To recap, Wilmar posted a 38% y-o-y rise in its 3Q22 core net profit to US$797m – a new high and significantly ahead of market expectations. See Wilmar International - CGS-CIMB Research 2022-10-28: Third Consecutive Quarter Of Record Net Profit. Wilmar also indicated that the record profit achievement would not have been possible if the group had not invested in building its downstream capacities to grow its operations over the past decade; this is now bearing fruit.
- - Read this at SGinvestors.io -
- At its results briefing, Wilmar (SGX:F34) explained that its solid 3Q core net profit was driven by higher plantation and downstream palm processing earnings, hedging gains, associates' contribution and lower effective tax rate.
- We gather that Wilmar's associates in India (Adani Wilmar, AWL) and Africa (palm oil operations) did well in 3Q22. On top of this, its effective tax rate was lower as the group’s offshore hedging profit in Singapore was strong in 3Q and the corporate tax rate for this business was only 5%.
- To recap, Wilmar posted a 38% y-o-y rise in its 3Q22 core net profit to US$797m – a new high and significantly ahead of market expectations. See Wilmar International - CGS-CIMB Research 2022-10-28: Third Consecutive Quarter Of Record Net Profit. Wilmar also indicated that the record profit achievement would not have been possible if the group had not invested in building its downstream capacities to grow its operations over the past decade; this is now bearing fruit.
- Wilmar is cautiously optimistic about its 4Q22F earnings performance; we sense that it sees a repeat of the stellar results in 3Q22 as a tall order.
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
Ivy NG Lee Fang CFA CGS-CIMB Research | Nagulan RAVI CGS-CIMB Research | https://www.cgs-cimb.com 2022-11-01
Read also CGS-CIMB's most recent report:
2023-10-30 Wilmar International - Slow Recovery In Profits, But Worst Is Over.Previous report by CGS-CIMB:
2023-10-27 Wilmar International - Signs Of Mending Profitability.Price targets by 5 other brokers at Wilmar Target Prices.
Listing of research reports at Wilmar Analyst Reports.
Relevant links:
Wilmar Share Price History,
Wilmar Announcements,
Wilmar Dividend Payout Dates & Corporate Actions,
Wilmar News
Wilmar International - On Track For Another Record-Breaking Year
WILMAR INTERNATIONAL LIMITED (SGX:F34)
