Olam's Q2 net profit nearly triples

OLAM International reported on Friday that its net profit for the three months to end June rose 197.6 per cent from a year ago to S$94.7 million.

The Singapore-based commodities group, which has changed its fiscal year end to Dec 31, from Jun 30, said the results included a net loss of S$19.2 million on the fair valuation of biological assets compared to a net gain of S$17.1 million in Q2 2014.

During the quarter, sales of goods and services fell 16.4 per cent to S$4.8 billion following its strategy to grow in prioritised platforms while reducing volumes or exiting lower-margin businesses.

Olam's Co-Founder, Group Managing Director and CEO, Sunny Verghese said:"We remain focused on pursuing profitable growth and are excited by the growth opportunities offered by the transformational acquisitions of McCleskey Mills, which has already started to contribute to earnings, and of ADM's cocoa business, which is expected to be completed in Q4 2015."

The board has declared a dividend of 2.5 cents per share.