Olam's second-half profit falls 83.4% to $38.4 million

Agribusiness giant Olam Group on Feb 28 reported a net profit of $38.4 million for the second half ended Dec 31, down 83.4 per cent from $230.8 million in the previous corresponding period.

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This translated to earnings per share of 0.58 cent for the half-year, down from 5.67 cents the previous year.

The group noted that earnings declined as earnings before interest and tax (Ebit) growth was offset by "a significant increase in net finance costs and higher net exceptional losses".

These losses were mainly from the temporary cessation of operations at its food ingredients unit ofi's onion and parsley processing plant, as well as the lease surrender and exit of two non-strategic almond orchards in the US.

Excluding these exceptional items, underlying profit fell 47.9 per cent on the year to $142.8 million.

Revenue for the period, however, rose 24 per cent to $29.2 billion from $23.6 billion.

Sales volume for the second half grew 11.2 per cent and Ebit was up 10 per cent at $1 billion, led by strong growth from the group's ofi and Olam Agri units, which offset higher losses from the remaining Olam group.