- Wilmar (SGX:F34)’s recent 2Q24 shows a silver lining in tropical oils recovery. However, its Food Products segment has softened due to persistent tightening margins amidst falling commodity prices and weak demand, particularly in China.
- - Read this at SGinvestors.io -
Minor improvements, but margins compressed
- We think the prospect of a turnaround is some way off, at least until China’s recovery is on a better footing.
- With Wilmar's new businesses such as central kitchens being slow in progress, material earnings contribution remains some way off.
Food Products conditions challenging
- In Wilmar's recent 2Q24 release, Food Products saw volumes declining at -9% q-o-q (vs. 5% 1Q24), with both Consumer Products and Medium Pack Bulk segment experiencing stagnation. This is reflective of weak consumer activity in China.
- - Read this at SGinvestors.io -
Industrial segments supported by crushing margins
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Thilan Wickramasinghe Maybank Research | https://www.maybank-ke.com.sg/ 2024-08-18
Previous report by Maybank:
2024-05-06 Wilmar International - Some Improvements, But Headwinds Remain. Wait For Better Days..
Price targets by 3 other brokers at Wilmar Target Prices.
Listing of research reports at Wilmar Analyst Reports.
Relevant links:
Wilmar Share Price History,
Wilmar Announcements,
Wilmar Dividends & Corporate Actions,
Wilmar News Articles
