SINGAPORE (Feb 28): Olam International reported 4Q earnings of $102.2 million, compared to a loss of $269.4 million last year on improved operational performance and lower exceptional losses.
Operational PATMI, which excludes exceptional items, more than doubled to $102.3 million.
EBITDA rose 34.4% to $349.0 million on the back of a strong performance from Confectionery & Beverage Ingredients and Food Staples & Packaged Foods, which offset declines in other business segments.
Net finance costs came down from $121.3 million to $112.0 million on continued initiatives to optimise loan tenures and reduce borrowing costs.
Sales volumes grew 14.0% on volume growth recorded by the Food Staples & Packaged Foods as well as the Industrial Raw Materials, Ag Logistics & Infrastructure segments.
Revenues rose 12.1% to $6.1 billion.
For FY16, Olam recorded PATMI of $351.3 million compared to a loss of S$114.9 million in the previous year on improved operational performance and lower impact from exceptional losses. Operational PATMI was up 23.1% at $363.8 million.
Net finance costs fell to $403.5 million in FY16 from $448.9 million a year ago.
In its outlook, Olam says the long-term trends in the agri-commodity sector remain attractive, and the group is well positioned to benefit from this as a core global supply chain business with selective integration into higher value upstream and mid/downstream segments.
The board has recommended a final dividend of 3.0 cents per share, bringing total dividends to 6.0 cents per share for FY16. This compares to total dividend of 6.0 cents for the previous financial year of 18 months.
Shares of Olam closed at $2.06 on Monday.
