Wilmar International - OCBC Group Research 2026-05-05: Mixed Outlook

• Wilmar (SGX:F34)’s 1Q26 results missed expectations, despite strong top-line growth. Its revenue rose 21.9% y-o-y to US$19.8b in 1Q26, driven by higher sales volume (+15.6% y-o-y) across all its core segments and the consolidation of AWL Agri Business Limited (AWL).
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1Q26 results missed expectations; unrealised hedging losses expected to reverse.

• However, Wilmar’s net profit and core net profit fell 22.8% and 23.0% y-o-y to US$265.6m and US$264.2m respectively. The earnings decline was largely due to temporary unrealised mark-to-market hedging losses of ~US$50m, stemming from sharp commodity price movements amid Middle East tension, as well as weaker contributions from associates and joint ventures.
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Higher crude palm oil (CPO) prices: near-term support for upstream, mixed implications for downstream.

• Escalation Middle East tensions have lifted crude oil prices, boosting biodiesel economics and providing a tailwind to CPO prices. Elevated CPO prices are supportive of Wilmar’s upstream earnings in the near term. However, they present a double‑edged sword for downstream operations, as higher input costs could weigh on margins—particularly where cost pass‑through to consumers is constrained by the competitive and staple‑food nature of the business.
• Moreover, adjustments to selling prices typically occur with a time lag, which could weigh on near-term margins.

Downgrade to HOLD.

• Read more at SGinvestors.io.

Chu Peng OCBC Group Research | https://www.iocbc.com/ 2026-05-05

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