Olam Q4 profit more than quadruples on higher earnings, exceptional gains

AGRI and food giant Olam International posted a net profit of S$313.4 million for the fourth quarter ended Dec 31, 2019, more than quadruple the S$75.3 million a year ago. 

This came on the back of a stronger Ebitda, or earnings before interest, tax, depreciation and amortisation, performance, as well as net exceptional gains of S$83.7 million for the quarter, Olam said in a regulatory filing on Friday. 

Earnings per share stood at 9.41 Singapore cents for the quarter, up from 1.92 cents a year ago. 

Revenue for Q4 rose 3.3 per cent to S$8.74 billion, from S$8.46 billion in the previous year. This was thanks to higher contribution from its food staples and packaged foods, confectionery and beverage ingredients, as well as industrial raw materials, infrastructure and logistic segments.

Meanwhile, net exceptional gains came mainly from one-off gains on the divestments of de-prioritised assets, partly offset by the one-off exit costs, losses on potential disposal/sale, and/or impairment of other de-prioritised assets.

A final cash dividend of 4.5 Singapore cents per share was recommended for the quarter, up from four Singapore cents a year ago. Once approved by shareholders at the April 24 annual general meeting, the dividend will be paid on May 13, after books closure on May 5. With an interim dividend of 3.5 cents, this would bring the total dividend for FY19 to eight Singapore cents per share, up from 7.5 cents in FY18. 

For the full year ended Dec 31, net profit was up 62.2 per cent to S$564.2 million, while revenue rose 8.2 per cent to S$32.99 billion. 

Olam shares closed at S$1.74 on Thursday, down S$0.01 or 0.6 per cent.