Olam International has booked a jump in full-year earnings, which were boosted by margin expansion and one-time gains.
In the 12 months to 30 June, the company said profit after tax and minority interests rose 67.8% to S$608.5m (US$487.6m). Management attributed growth to exceptional gains from the successful execution of “various initiatives” under a strategic plan that has seen it scale back investment levels and strengthen its balance sheet.
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As part of this drive, Olam recently announced plans to sell a 25% stake in its packaged foods business to Japan’s Sanyo Foods. The company said today (29 August) it expects to complete this transaction within fiscal 2015.
Olam’s operating performance was flat: EBITDA was “maintained” at S$1.17bn. The group offset weaker sales volumes with margin expansion initiatives.
Sales volumes fell 6.7% as the group lapped a 49.5% increase in the prior-year period and exited lower-margin businesses. Value sales were down 6.6% to S$19.42bn.
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