Singapore-based ingredients group Olam International reported an increase in nine-month net profit driven by an increase in sales volumes.

The company said yesterday (12 May) that net profit was up 12.9% to S$301.7m. Excluding exceptional gains related to the negative goodwill of NZ Farming Systems Uruguay, net profit was up 55.9% to $265.9m.

Revenue for the period grew 53.1% to $11.21bn, while volumes were up 19.3% to 6.2m tonnes.

The group said its dairy business had to contend with "difficult trading conditions and lower industry margins" as well as the consolidation of operating losses from NZFSU. The company said that after it took control of the dairy group last year, it has taken significant steps to reshape its strategy and revamp the management of the company, expecting to see more positive results in the coming years.

Additonally, it said its New Zealand dairy processing operation ODCL "underperformed" over the period, which it attributed to the "surprisingly high milk price" announced by Fonterra, leading to a "poor performance for most dairy processors over the period".