Olam's Q2 net profit falls 8.4%

By ANGELA TAN


Olam International Limited reported on Monday that its net profit before exceptional gain for the second quarter ended December 31, 2010 grew 65.6 per cent from a year ago to S$112.2 million.

Including exceptional gain, the net profit attributable to shareholders for the quarter fell 8.4 per cent to S$145.44 million.

In the first half of 2011, Olam's results included exceptional gain amounting to S$33.6 million arising from the negative goodwill (net of transaction costs) of NZ Farming Systems Uruguay (NZFSU) in December 2010. As against this, in H1 FY2010 the company recorded exceptional gain of S$91.1 million for the acquisition of tomato processing assets in California in Q2 FY2010.

During the quarter, sales revenue grew 47.3 per cent to S$4.03 billion.

Given the strong performance recorded by the company in H1 FY2011 and the continued execution of long term strategic growth plans, Olam continues to be positive about its prospects for the remainder of FY2011.