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Olam's Q3 net profit grows 18% to S$24.1m on higher sales volume

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Strong sales volume growth and improved operational performance gave a lift to results for Olam International in its third quarter.

Strong sales volume growth and improved operational performance gave a lift to results for Olam International in its third quarter.

Net profit grew 17.5 per cent to S$24.1 million from the preceding year, the group said in a Singapore Exchange filing on Wednesday morning.

For the three months ended Sept 30, revenue grew 41.7 per cent to S$6.71 billion from the preceding year, as its traded volume almost doubled to 5.8 million tonnes, from 3.8 million tonnes.

Earnings per share dipped to 0.3 Singapore cents from 0.33 Singapore cents in the preceding year.

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The third-quarter results built on the positive trend of the firm's first half of the year, noted co-founder and group chief executive Sunny Verghese in a statement. "Execution of our strategy has significantly improved earnings growth and generated strong free cash flow."

"This performance is clear evidence that our strategy is working. We believe we have struck the right balance between driving for growth while managing risk and cash flow," he added.

The group is cautious about near-term market uncertainties in some agri-commodities that may affect the firm, but overall confident of its ability to generate long-term value for its stakeholders, said Mr Verghese.

Olam shares ended trading at S$2.28 on Tuesday, down 4 cents or 1.7 per cent from its previous close.

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