Olam’s net profit falls by 30% to $31m in 3Q

Spoiled by its curdling dairy operations.

The agribusiness company’s food staples and packaged foods segment proved to be the fly in the ointment for its earnings, essentially ruining what would have been a stellar quarter for Olam.

According to analysts from OCBC, all of Olam’s segments registered growth except the food staples and packaged foods segments, which was bombarded by lower volumes, prices, and overall disappointment stemming from its upstream dairy operations.

“And because of this, EBITDA slipped 18% to S$184.0m, while reported net profit tumbled 30% to S$31.0m; operational NPAT rose 6% to S$34.2m,” OCBC said.

Meanwhile, Olam is not one to slack off in a crisis, as OCBC says it is restructuring its dairy farming business in Uruguay, expecting to book a one-off restructuring cost in 4Q.

“Meanwhile, the Industrial Raw Materials segment continued to see lower volumes, mainly due to lower Fertilizer trading, cotton and wood Products volumes; while the SEZ business continues to be a drag on EBITDA,” OCBC added.

Also Read

Olam Agri will not extend Namoi Cotton takeover offer

China Shenshan Orchard names Ngo Yit Sung as independent director

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit