Flourishing food sales drive Olam International profits up 21.3%

Food segment sales volumes nearly doubled.

The Food segment's spectacular performance helped Olam International Limited (Olam) achieve a 21.3% growth in Profit After Tax and Minority Interest (PATMI) of S$197.3 million for H1 FY2013 compared to S$162.7 million in H1 FY2012.

"The Food category, which accounted for 88.6% of total volumes, 76.9% of total revenue and 88.4% of total NC, saw Sales Volume increase by 83.1% and NC by 20.0% compared to H1 FY2012. Sales Volume for the Non-food category improved by 16.1% and NC increased by 29.2% as the Industrial Raw Materials segment reported a 45.0% growth in NC which was partially offset by the decline in NC from the Commodity Financial Services segment," said Olam International in a release.

Excluding exceptional items, PATMI increased by 10.1% to S$179.2 million in H1 FY2013. Sales Revenue increased by 24.3% to S$9.59 billion as Sales Volume grew 71.9% to 7.8 million metric tonnes. Overall NC grew 21.0% to S$734.3 million.

Olam’s Group MD & CEO, Sunny Verghese said: “We are pleased with the overall results of the Company for H1 FY2013 where we continue to see healthy growth rates in the Food Category and a recovery in the Cotton business within the Industrial Raw Materials segment. We have also successfully stabilised the situation that surrounded the Company in the recent past and the endorsement that we received for our recent Renounceable Rights Issue of Bonds with Warrants has further strengthened the Company’s financial position. We are grateful for the strong support that we have received from our shareholders, bondholders, lenders, customers, suppliers and employees during this period.”

Olam’s Executive Director of Finance and Business Development, Shekhar Anantharaman said: “The Company’s H1 FY2013 results show substantial increase in volumes and sales revenues which underpinned the growth in overall NC. It is encouraging to note that growth in earnings in H1 FY2013 was driven by both the core business as well as the investments made in the recent past.”