SINGAPORE: Food propels Olam H1 sales

By Katy Askew | 12 February 2013

Sales up 24.3%
Food volumes up 83.2%
Comparable post-tax profit up 10.1%

Olam sales, profits rise

Olam International has booked a jump in first-half sales, which were up by almost one quarter on strong growth from the Singapore group's food business.

The company said sales in the six-month period rose 24.3% to S$9.6bn (US$7.72bn), on an increase in sales volumes of 71.9%.

Gains were driven by an 83.2% in volume growth at the group's food unit, with "net contribution" from the business up 24.2%.

Group profit after tax and minority interests rose 21.3% to S$197.3m. Excluding exceptional items, such as the sale and lease back of almond orchards in California, profit growth stood at 10.1%, while earnings per share rose 17.8%.

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OLAM INTERNATIONAL REPORTS 21.3% GROWTH IN PROFIT AFTER TAX AND MINORITY INTEREST TO S$197.3 M FOR H1 FY2013

H1 FY2013 : Financial Highlights

Sales Volume of 7.8 million tonnes, up 71.9%
Sales Revenue of S$9.6 billion, up 24.3%
Net Contribution (NC) of S$734.3 million, up 21.0%
Profit After Tax and Minority Interest (PATMI) at S$ 197.3 million, a growth of 21.3%
Excluding exceptional items, PATMI at S$179.2 million, a growth of 10.1%
Food category Sales Volume up 83.1%, NC up 24.2%
Industrial Raw Materials Sales Volume up 16.1%, NC up 45.0%
EPS of 7.8 cents/share, up 17.8%

H1 FY2013: Other Highlights

Completed transaction for the sale & lease back of 4,795 acres of Almond Orchards in California releasing cash of S$68.5 million and resulting in a net gain (after tax) of S$18.1 million
Announced acquisition of Northern Coffee Corporation for US$6.2 million, 50% of Acacia investments for US$35 million to expand edible oil refining and distribution in East Africa, Dehydro Foods Limited, a leading processor of dehydrated onions in Egypt for US$30.8 million and Seda Solubles, a soluble coffee manufacturer in Spain for US$52 million. All these acquisitions are “On-Plan” and “On-Strategy”
Completed the acquisition of the remaining shares of New Zealand Farming Systems Uruguay Limited (“NZFSU”) and delisted the company from the NZX Main Board
Announced the termination of the proposed US$240 million investment in Usina Acucareira Passos (“UAP”), an integrated sugar milling operation in Brazil