Olam's Q3 profits climb 10% to $108.5 million

Third quarter profits for Olam International got a boost from its food staples and packaged foods segment.

Net profit for the quarter ended March 31 climbed 10 per cent to $108.5 million from the same quarter a year ago.

Its revenue grew by 11.5 per cent to $4.72 billion over the same period.

The food staples and packaged foods, its largest sector, more than doubled its sales volume for the third quarter to 2.63 million metric tonnes.

This contributed an additional $597 million in sales for the quarter to $1.69 billion.

However, third quarter revenue for Olam's confectionary and beverage ingredients segment fell 21.8 per cent to $1.34 billion.

Its edible nuts, spices and beans division reported a fall in revenue by 23.4 per cent to $705 million for the quarter.

Third-quarter revenue for its industrial raw materials business rose 15.3 per cent to $982.8 million.

The portfolio included cotton, wool, rubber and wood products.

"The overall results continued to demonstrate the strength and resilience of the Olam business model," Olam group managing director and chief executive Sunny Verghese said in a statement.

"We are confident that the well differentiated and defensible competitive position that we have built across multiple platforms will continue to deliver profitable growth."

Earnings per share went up 9.2 per cent to 4.3 cents.

It reported a rise in net asset value per share to $1.47, up from $1.39 in June last year.

Olam's share price closed at $1.81, up 2.5 cents, today.