Olam's profits up 17% to S$305.8m

Thanks to its robust food segment.

According to a release, Olam International Limited today reported a 17.0% growth in Profit After Tax and Minority Interest (PATMI) of S$305.8 million for 9M FY2013 compared to S$261.4 million in 9M FY2012.

Excluding exceptional items, PATMI increased by 15.0% to S$300.7 million in 9M FY2013. Sales Revenue increased by 19.7% to S$14.31 billion as Sales Volume grew 61.5% to 11.7million metric tonnes. Overall NC grew 22.9% to S$1,157.1 million.

The Food category, which accounted for 89.0% of total volumes, 77.7% of total revenue and 88.8% of total NC, saw Sales Volume increase by 70.6% and NC by 22.0% compared to 9M FY2012. Sales Volume for the Non-food category improved by 12.5% and NC increased by30.0% as the Industrial Raw Materials segment reported a 42.0% growth in NC which was partially offset by the decline in NC from the Commodity Financial Services segment.

Olam’s Group MD & CEO, Sunny Verghese said: “The overall results continued to demonstrate the strength and resilience of the Olam business model. We are confident that the well differentiated and defensible competitive position that we have built across multiple platforms will continue to deliver profitable growth.

“Our focus on portfolio optimisation and positive cash flow achieved during the quarter were consistent with our recently updated strategy of pursuing ongoing profitable growth with an increased emphasis on productivity improvements and accelerated cash generation.

”In Q3 FY2013 PATMI grew by 10% over the same quarter last year to S$108.5 million. PATMI before exceptional items grew 12.7% to S$115.3 million. Sales Revenue grew to S$4.72 billion, an increase of 11.5% compared with Q3 FY2012 off the back of a 44% increase in Sales Volume to 3.9 million metric tonnes.

The quarter included the opening of a A$60 million almond hulling and processing facility in Australia and announcement of the divestment of a non-core basmati rice milling facility in India.

The Q3 FY2013 results included a net exceptional loss of S$13.0 million mainly from the recognition of costs incurred on the termination of the proposed sugar refinery projects in Nigeria following regulatory changes and in Brazil as a result of closing conditions not being met, as previously announced. This was offset by gains on the buyback of bonds issued by NZFSU.