Olam's Q3 net profit down 8.6% on higher depreciation charges

Singapore

OLAM International's earnings slipped 8.6 per cent in the third quarter as higher depreciation and amortisation charges negated higher revenues.

The group recorded a net profit of S$20.5 million in the three months ended Sept 30, from a restated net profit of S$22.5 million the same period a year ago.

Revenue had grown 6 per cent from a year ago to S$4.7 million on the back of a 16.4 per cent rise in volumes traded, offset by lower prices in some commodities.

But a 43.5 per cent increase in depreciation and amortisation to S$82.6 million eroded the bottomline. The heftier charge was due to Olam's higher fixed asset base after acquiring ADM's cocoa processing business and BUA Group's wh…