Singapore commodities group Olam International today (14 November) reported a 15% increase in quarterly profits.
Olam filed a net profit after tax and minority interests of S$34.2m (US$26.5m) for the first quarter of its financial year, which took in the three months to the end of September. Revenue jumped 31.6% to S$1.86bn.
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Food accounts for over 80% of Olam’s revenue. The firm said turnover from its edible nuts, spices and beans division increased by over 22%, while revenue from its confectionery and beverage ingredients unit leapt 49.2%. The company said sales from its food staples and packaged food arm jumped 31.6%. All three businesses also saw the net contribution per tonne they make increase year-on-year.
However, Olam said its dairy unit in New Zealand “continued to face difficult trading conditions” amid uncertainty over the outlook for milk prices.
Nevertheless, MD and CEO Sunny Verghese said the company’s first-quarter results reflected the ability of the business to “deliver positive results through economic and commodity cycles”.
He added: “We are able to perform across these cycles due to the fact that our portfolio is focused mainly on food ingredients and raw materials which are inherently more recession-resistant. We also benefit from participation across multiple commodities, countries and value chain segments, creating a uniquely shaped and well-balanced portfolio.”
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By GlobalDataLast week, Olam announced plans to buy Turkish hazelnut supplier Prodiga Group for TRL66m.
Click here for the full statement from Olam.
