SINGAPORE (Aug 14): Olam International reported a 28.5% rise in 2Q17 earnings to $147.7 million from a year ago, bringing 1H17 earnings 27.5% higher to $291.5 million.
Revenue in 2Q17 grew 30.9% to US$6.5 billion, as sales volumes rose 28.6%. Revenue for 1H17 grew 26.5% to US$12.3 billion.
EBITDA in 2Q17 and 1H17 were up 18.4% and 19.1% to $373.7 million and $772.3 million respectively on growth across most business segments.
This was lifted by on stronger performance by four of its five business segments, particularly the Food Category which saw EBITDA of US$328 million compared to US$271.2 million a year ago.
In 2Q, Edible Nuts, Spices & Vegetable Ingredients, Confectionery & Beverage Ingredients, Food Staples & Packaged Foods as well as the Industrial Raw Materials, Ag Logistics & Infrastructure segment all did better than a year ago.
EBITDA for the Non-Food Category came in at US$45.5 million compared to US$44.4 million a year ago.
In 1H17, the group generated higher positive Free Cash Flow to firm of $239.4 million.
The board has declared an interim dividend of 3.5 cents per share.
Co-founder & Group CEO Sunny Verghese says: “Our strong 2Q performance on top of a solid 1Q has delivered significantly improved first-half results. Our Food Category segments in particular lifted overall performance in 2Q.
“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.”
In its outlook, Olam says its diversified and well-balanced portfolio provides a resilient platform to navigate the challenges in both the global economy and commodity markets although it expects macro-economic uncertainties to continue through the year.
Shares in Olam last traded at $1.95 on Aug 11.
