Olam's operating profit down 5.5% to $126.1m in Q1

Due to lower selling prices.

Agribusiness player Olam International reported that its operating profit dropped 5.5% to $126.1m in the first quarter, on back of lower selling prices of its key eible nuts, spices & vegetable ingredients segment.

The segment registered a 28.0% year-on-year volume increase on higher volumes for nearly all products within the segment, especially for the peanut business post the full consolidation of the results of McCleskey Mills for the quarter. However, revenues declined 12.4% as prices fell across most products.

Olam's commodity financial services segment booked a loss of $3.5 million in Q1, compared to a revenue of $11m in the same period last year.

Meanwhile, the revenue of three other segments--confectionary & beverage ingredients, food staples & packaged food, and industrial raw materials--rose across the board on back of higher volumes.

Including one-off items, the group's net profit surged 212.8% to $113.6m. This was primarily on back of lower exceptional losses.