Olam's year of restructuring creates cheerier report card

ABOUT a year after coming under a barrage of criticism by US shortselling firm Muddy Waters, Olam International emerged last week with much to cheer about at its first quarter results briefing. But more needs to be done for the global integrated supply chain manager and processor of agricultural produce and food ingredients to keep itself on an even keel.

The group finds itself better fortified after a year of restructuring. Profit margins have improved. And initiatives announced so far will release $96.9 million in capital gain and $368.6 million in cash.

The firm has also generated positive free cash flow - the first time in four years for a seasonally weak quarter.

Its executive director of finance and business development A Shekhar told analysts and reporters: "We're very pleased that we're striking the right notes on both objectives of profit growth as well as f…