Volumes for all of Olam's segments rose except for this one

It blames a shipment delay.

According to CIMB, Olam delivered a decent set of results despite the distraction of Muddy Waters’ accusations. 2QFY13 revenue was 9% higher due to increased volumes. Core net profit climbed 21% higher to S$114m.

Volumes increased for all segments except for confectionery & beverage ingredients where a shipment delay resulted in lower volumes. "We expect this to be compensated for in 3QFY13," CIMB said.

The industrial raw materials segment saw improved margins and volumes as cotton markets normalised, a trend which will persist in 2H13. Its expansion in the grains business continued to drive profits from the food staples & packaged foods segment.

Here's more from CIMB:

We expect Olam to tone down its capex plans. The group has initiated a strategy review to recalibrate its priorities and capex. It conducted a sale and leaseback of its US almond orchard land in 2QFY13, a move which freed up cash and helped the balance sheet.

We expect more of such asset recycling initiatives in the near future as the group increases its focus on cash flow generation.

The Gabon fertiliser project has been delayed by nine months and is likely to face cost overruns. Adjusted net gearing increased from 0.37x in Jun 12 to 0.68x in Dec 12 because of higher debt. We see few catalysts amid escalating gearing and negative cash flows.