Olam announces US$108m profit in Q2

Olam International has reported growth in its profits after tax and minority interest (PATMI) of 28.5 per cent, year-on-year, citing improved operational performance as the reason for the gains. Overall, Olam reported PATMI of US$108 million for the second quarter of 2017, singling out improvements in its Food Category as the main driver of the growth. The Group’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 18.4 per cent to $274 million on stronger performance by four of its five business segments, particularly the Food Category. Edible Nuts, Spices and Vegetable Ingredients, Confectionery and Beverage Ingredients, Food Staples and Packaged Foods as well as the Industrial Raw Materials, Ag Logistics and Infrastructure segment, all did better than a year ago. Sales volumes were up 28.6 per cent as most segments registered higher volumes. Revenue grew
30.9 per cent primarily on the higher volumes. Co-Founder and Group CEO, Sunny Verghese said: “Our strong Q2 performance on top of a solid Q1 has delivered significantly improved first-half results. Our Food Category segments in particular lifted overall performance in Q2. This reflects the continued execution of our strategic plan and our disciplined focus on capital management. We are confident that our business model will remain resilient and our balanced approach to pursuing current and future growth will serve us well.”