For the first half of 2017, the company said PATMI increased 27.5% to S$291.5 million. EBITDA for the quarter grew 18.4% to S$373.7 million and 19.1% for the first half of the year to S$772.3 million.
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| Sunny Verghese, co-founder and group chief executive officer. |
“Our strong Q2 performance on top of a solid Q1 has delivered significantly improved first-half results,” said Sunny Verghese, co-founder and group chief executive officer. “This reflects the continued execution of our strategic plan and our disciplined focus on capital management. We are confident that our business model will remain resilient and our balanced approach to pursuing current and future growth will serve us well.”
Sales volumes were up 28.6% as most segments registered higher volumes. Revenue grew 30.9% primarily on the higher volumes.
Edible Nuts, Spices & Vegetable Ingredients; Confectionery & Beverage Ingredients; Food Staples & Packaged Foods; as well as the Industrial Raw Materials, Ag Logistics & Infrastructure segments all did better than a year ago, the company said.
The Food Staples & Packaged Foods segment registered a 52.7% increase in revenue mainly on higher trading volumes, especially in Grains and Edible Oils in the first half of the year. EBITDA grew 31.5% as most platforms within the segment showed improved performance.
Grains was a key growth driver as its origination and trading business, as well as its wheat milling operations in West Africa, continued to perform well, Olam said.
Invested Capital in the segment increased by S$1.7 billion as compared with the end of June 2016. Fixed capital was up mainly due to construction of animal feed mills in Nigeria and wheat milling capacity expansion in Ghana and Nigeria.
Looking ahead, Olam said its diversified and well-balanced portfolio will allow it to navigate the challenges in the global economy and commodity markets.
“Olam will continue to execute on its strategic plan and pursue growth in its prioritized platforms,” the company said in an earnings presentation. “It remains focused on turning around underperforming businesses, ensuring gestating businesses reach full potential and delivering positive free cash flow.”
