SINGAPORE (Feb 27): Olam reported 4Q earnings more than doubled to $265.1 million from a year ago on one-off gains from divestments as well as lower depreciation and amortisation, and net finance charges.
Operational PATMI, which excludes exceptional items, grew 7.2% y-o-y to $109.7 million from $102.3 million a year ago. Revenue for 4Q rose 18.5% to $7.2 billion.
EBITDA was down by 10.4% at $312.8 million due to weaker contribution from the Confectionery & Beverage Ingredients and Food Staples & Packaged Foods segments.
For the full FY17, Olam reported 65.3% higher earnings of $580.7 million on one-off gains on divestments, improved operational performance and lower taxes. Operational PATMI grew 18.6% to $431.5 million while revenue grew 27.6% to $26.3 billion.
Sales from Edible Nuts, Spices & Vegetable Ingredients grew 12.8% to $4.5 billion, mainly on higher volumes in Edible Nuts and spices along with higher almond and cashew prices compared to FY16.
Sales from Confectionery & Beverage Ingredients increased 5.5% to $8.1 billion on higher volumes, offset by lower coffee and cocoa prices.
Sales from Food Staples & Packaged Foods increased 59.8% to $9.8 billion mainly on higher trading volumes in Grains, Edible Oils, Rice and Dairy.
Sales from Industrial Raw Materials, Ag Logistics & Infrastructure was up 39.2% to $3.9 billion on higher Cotton volumes.
Sunny Verghese, co-founder & group CEO of Olam, says, “We successfully delivered on our key priorities for 2017 as part of our 2016-2018 strategic plan, closing the year with a strong set of results. Our earnings for the year grew significantly and our returns also improved. We generated record cash flows and further strengthened our balance sheet by reducing our gearing."
Olam expects macro-economic uncertainties to continue through the year, Olam believes its diversified and well-balanced portfolio provides a resilient platform to navigate the challenges in both the global economy and commodity markets.
The board has recommended a final dividend of 4.0 cents per share, bringing total dividend to 7.5 cents per share in FY17.
Shares in Olam closed 2 cents higher at $2.28 on Tuesday.
