Friday, August 14, 2015

Olam’s 2Q earnings soar 198% to $94.7 mil on higher operational PATMI

Olam International's 2Q earnings nearly tripled to $94.7 million from $31.8 million a year ago.

This was despite a net loss of $19.2 million on the fair valuation of biological assets compared to a net gain of $17.1 million a year ago.

Turnover for the agriculture company fell 16.4% to $4.81 billion from $5.76 billion previously.

The lower revenue was part of the company’s strategy to grow in prioritised platforms while reducing volumes or exiting from lower-margin businesses, says Olam.

However, operational PATMI (excluding exceptional items) in 2Q increased 96.3% to $95.2 million.

EBITDA in 2Q increased 6.1% to $285.1 million with continued growth across most platforms.

Despite the recent volatility in the commodity and currency markets, Olam believes its diversified portfolio with "leadership positions" in many segments provides a resilient platform to navigate these uncertainties.

Olam has declared an interim one-tier tax exempt dividend of 2.5 cents per share.

Shares of Olam ended higher yesterday at $1.76, up 3 cents or 1.7%.

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