Olam's Q1 net profit triples on lower exceptional charges from bond buybacks

COMMODITIES trader Olam International on Friday reported a tripling in net profit to S$113.6 million for its first quarter ended March 31, 2016.

This was due to a lower exceptional charge in Q1 2016 compared to a year ago, it said.

The exceptional charges in both periods were due to the buybacks of high priced bonds, amounting to S$97.2 million in Q1 2015, and S$12.5 million in Q1 2016.

Excluding exception items, operational profit after taxes and minority interests fell by 5.5 per cent to S$126.1 million.

This was due to lower contributions from edible nuts, spices and vegetable ingredients and commodity financial services, as well as higher depreciation and amortisation costs.

Revenue rose 10.2 per cent to S$4.76 billion for the quarter.

Earnings per share rose to 3.95 Singapore cents, from 1.32 Singapore cents a year ago.