Olam's net profit plunged 92.1% to $31.3m in Q1

Due to a loss from bond buyback scheme.

Agribusiness giant Olam reported that its net profit plunged 92.1% to $31.3m in the first quarter.

Olam's results were dragged by a net exceptional loss of$97.2m due mainly from the buyback of outstanding US$750m 6.75% bonds due 2018.

The bond buyback is expected to generate interest savings of about $55-60m per year over the next three years.

The group's results were also impacted by a one-off gain of $293.9m from the revaluation of its stake in PureCircle Limited as well as the sale and leaseback of its almond assets in Australia in the same period last year.

Sales volume fell 33.2% on back of reduced volumes from lower-margin business. Revenue declined 10.7% to $4.3 billion as lower volumes were offset by higher prices of some commodities.