Olam International scores improved first quarter results
The global ingredients group Olam International has delivered an upturn in its financial performance, with revenues for the quarter standing at $7.3 billion, up 16% year-on-year.
According to its latest results, its operating profit was also up 6.9% for the period, at S$168.8 million, and EBITDA figures were up 14.2% at $420 million, owing to greater revenues from its cocoa and nut supplies.
Co-Founder and Group CEO Sunny Verghese said: “We delivered improved financial performance in Q1 2019, with a 14.2% growth in EBITDA and a 11.3% growth in Operational PATMI compared with Q1 2018. Our diversified portfolio enabled us to better navigate continuing volatile macro and industry headwinds.
“We have started well in executing the four key pathways of our 2019-2024 Strategic Plan, which focus on strengthening our high-growth businesses and getting closer to customers based on changing consumer preferences. Our recent acquisition of BT Cocoa in Indonesia and proposed acquisition of Dangote Flour Mills in Nigeria are examples of us investing further in our leading businesses.
“We have also successfully exited our Sugar trading business, the Fundamental Fund business, our Wood Products business in Latin America, and our Peanut farming and processing operations in Argentina in Q1 2019 as planned.”
Executive Director and Group COO, A. Shekhar added: “We have maintained a disciplined approach to managing our balance sheet, even as we continue to invest in growth. Our targeted capital expenditure and divestments enabled us to deliver positive Free Cash Flow to Equity of S$313.0 million, while improving gearing to 1.35 times.
“As part of Re-imagining Global Agriculture and Food Systems, we are pleased to pioneer the world’s first ‘Digital Loan’ of US$350.0 million, following on from our launch of Asia’s first sustainability-linked club loan last year.”