Wilmar headline 1Q figures disappoint at first glance
Closer inspection reveals improvement in certain areas, says Phillip Capital.
Revenue increased by 9.8% however net profit fell 33.8%.
On positive note, Phillip Capital says that total sales volume increased 21% which boosted the growth in revenue. The main drag on bottom line, it says is due to losses from Oilseeds & Grains division and Sugar division. Net profit was further impacted by higher interest charges, tax expenses and depreciation.
Here's more from Phillip Capital
Wilmar’s performance will continue to be weighed down by the Oilseeds & Grains division and probably the Sugar
division for the rest of the year. While we are positive on the rest, we trimmed our revenue and net profit estimates by 0.8% and 5.5% respectively, as we lower our assumptions in the Oilseed & Grains division. Share price crashed almost 10% after results announced.