Olam International

Olam reports 14% lower 3Q earnings on coffee, peanuts and commodity financial services

SINGAPORE (Nov 14): Olam reported 3Q18 earnings of $20.7 million, down 14.2% from a year ago against a strong 3Q17, mainly due to lower contribution from coffee, peanuts and Commodity Financial Services (CFS). This brings 9M18 earnings to $272.6 million, down 13.6% y-o-y.

Revenue for 3Q18 rose 23.6% to $8.3 billion on the back of a 66.4% increase in volume traded to 9.7 billion MT. As a result, revenue for 9M18 came in 15.7% higher at $22 billion on the back of a 57.8% rise in volume to 23.3 billion MT.

The 6 biggest SGX-listed agriculture stocks are beating global benchmarks

SINGAPORE (Sept 4): Six of the biggest agriculture-focused stocks listed on the Singapore Exchange (SGX) are beating global agriculture benchmarks so far this year, according to data from Bloomberg and SGX.

Wilmar International, Olam International, Golden Agri-Resources, First Resources, Japfa and Bumitama Agri each have a market capitalisation above $1 billion. As of Aug 27, they have a combined market capitalisation of $35.8 billion.

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Olam's 2Q earnings down 36.4% to $94 mil on coffee and peanut business

SINGAPORE (Aug 14): Olam International says 2Q18 earnings dropped by 36.4% to $93.9 million, compared to $147.7 million in 2Q17.

The weaker bottomline was due to a downcycle in the coffee industry, bad weather conditions in peanut farming in Argentina and lower contribution from edible oils.

The results bring 1H18 earnings to $251.9 million, 13.6% lower than $291.5 million in 1H17.

During the quarter, the group’s sale of goods & services increased by 13.9% to $7.43 billion from $6.52 billion a year ago.

Olam reports 9.8% rise in 1Q18 earnings to $158 mil on lower finance costs and tax expenses

SINGAPORE (May 14): Agri-business group Olam International, which grows, trades and processes food and industrial raw materials, reported a 9.8% rise in 1Q18 earnings to $158 million from $143.8 million a year ago on reduced net finance costs and lower taxation.  

Sales of goods and services rose 8.5% to $6.3 billion from $5.8 billion a year ago while other income more than doubled to $30 million and finance income more than trebled to $22.3 million.

Share of results from jointly controlled entities and associates more than quadrupled to $12.3 million.

Olam pays $3.1 mil for 29% stake in coffee & nuts JV in Spain

SINGAPORE (Apr 19): Olam International says it has paid 1.88 million euros ($3.05 million) for a 29% stake in a joint venture (JV) company with Guzman Global, the distributor of industrial raw materials as well as coffee & nuts.

Guzman Global holds the remaining 71% stake.

Based in Spain, the JV company is named Guzman Coffee & Nuts (GC&N), and is now an associated company of Olam.

It will import and distribute coffee & edible nuts in the Spanish and Portuguese markets.

Olam secures US$163 mil worth of medium-term loans

SINGAPORE (Mar 28): Olam International says it has secured a total of US$163 million ($213.4 million) in loans from Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA).

The medium-term financing facilities comprise two tranches: a US$83 million five-year facility for the group, as well as a US$80 million seven-year facility for its subsidiary, Café Outspan Vietnam (COVL), under a guarantee from Olam.

Olam eyes fish farming in Africa to tap growing middle class

(Mar 28): Olam International, one of the world’s largest food traders, is considering expanding into fish farming in Africa to tap demand from a growing and more affluent population.

The Singapore-based firm is conducting a feasibility study on farming fish in West Africa, likely in Nigeria, the continent’s most populated country, Chief Operating Officer Shekhar Anantharaman said. Olam could potentially start the venture with partner and shareholder Mitsubishi Corp., which owns fish businesses, he said.

Wilmar acquires remaining 50% stake in investment holding company from Olam for $195 mil

SINGAPORE (Mar 21): Wilmar International announced that its direct wholly-owned subsidiary, Wilmar Resources, has acquired a 50% equity interest in Nauvu Investments from Olam International for US$148 million ($194.9 million).

Of the total consideration of US$148 million, US$85.4 million comprises repayment of shareholder’s loan, which is subject to adjustments as provided in the sale and purchase agreement.

Olam reports doubling of 4Q earnings to $265 mil on one-off gains, lower charges

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.

Olam a step closer to becoming cocoa bean processing heavyweight with opening of Chicago plant

NEW YORK (Feb 6): Global commodities trader Olam International is building a cocoa powder manufacturing facility outside Chicago, according to a company spokesman and a local official.

The plant marks the latest step in the transformation of the large Singapore-based cocoa trader into a bean processing heavyweight.

In 2015, Olam scooped up the cocoa assets of rival Archer Daniels Midland for about US$1.2 billion ($1.6 billion). That did not include ADM's US chocolate plants.

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