Olam sees 2.6% rise in Q3 net profit to S$89.3m

By Chris Howells


SINGAPORE: Commodities supply chain manager Olam International said its third quarter net profit rose 2.6 per cent to some S$89 million. This was due to strong growth in all four of its main business segments.

Revenues for the third quarter rose 18.4 per cent to S$2.7 billion.

In the first nine months of the 2010 financial year, Olam's net profit rose 30.1 per cent to S$267 million as revenues increased 19 per cent to S$7.3 billion.

Olam saw strong growth in edible nuts, spices and beans, food staples and packaged foods and industrial raw materials on the back of stronger demand.

But its confectionary and beverage ingredients business grew at a relatively slower pace because of a short crop in cocoa in Ivory Coast and a short crop of coffee in Columbia.

Olam said it is on track to achieving its growth targets for the year.

Sunny Verghese, MD & CEO, Olam, said: “We've seen a fairly strong first quarter. I think there are some uncertainties about the current potential sovereign European debt contagion.

“But the fourth quarter of last year and first quarter of this year has been a pronounced uptick in demand and market sentiment. So far we see that continuing. The first two months of the second quarter has been along those trends.” - CNA/vm