Singapore-based commodities group Olam International witnessed an 8.2% drop in second-quarter net profit, which was hit by goodwill charges.

The company posted net profits of S$145.8m (US$113.7m) in the three months to the end of December, down from S$158.9m the previous year.

The drop was primarily the consequence of a goodwill charges associated with recent acquisitions.

However, the company emphasised that operational net profits during the first half, excluding exceptional items, rose 63.5%, driven by a 15.6% rise in sales volume.

Commenting on the result, Olam CFO Krishnan Ravikumar said: “All five business segments, namely Edible Nuts, Spices & Beans, Confectionery and Beverage Ingredients, Food Staples and Packaged Foods, Industrial Raw Materials and Commodity Financial Services, contributed to the growth in NC. We continue to make disciplined and balanced capital allocation decisions to change the shape of our portfolio and enhance our margins.”

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