Wilmar International Shares Drop After Weak 1Q Earnings Linked to Mideast Conflict
By Megan Cheah
Shares of Wilmar International slid after the Singapore-listed agribusiness posted weaker-than-expected first-quarter earnings, weighed by hedging losses linked to the Middle East conflict.
The stock declined as much as 4.4% to 3.66 Singapore dollars on Thursday, equivalent to US$2.86, on track for its largest percentage fall in over a year. Shares have since pared losses to last trade 3.9% lower.
The company, the largest edible oils refiner in China, reported core net profit of US$264.2 million for the three months ended March, falling 23% from a year earlier.
This was dragged down by temporary unrealized mark-to-market losses from the company's hedging activities caused by the war in Iran, it said Wednesday.
Wilmar, which also has operations in markets such as Indonesia, India and Africa, expects these losses to reverse in coming quarters when physical transactions are settled. The agribusiness also flagged weaker contributions from associates and joint ventures across China, Europe and Southeast Asia.
The core earnings figure missed both Citi and consensus estimates, said Citi analyst Gan Huan Wen in a note.
He expects the company to provide more clarity on the mark-to-market losses at its results briefing later Thursday, as the figure wasn't disclosed in the results.
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
April 29, 2026 23:14 ET (03:14 GMT)
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