* Earnings from Operations (Excluding exceptional items – negative goodwill net of transaction costs), based on weighted average number of shares of 2,442,280,720 shares for H1 FY2012 compared to 2,099,381,586 shares for H1 FY2011.
Olam International Limited (“Olam” or the “Company”), a leading global, integrated supply chain manager and processor of agricultural products and food ingredients, today reported Profit After Tax of S$186.8 million for the half year ended December 31 2011, an increase of 6.4% over the previous corresponding half year (“H1 FY2011”) and operational Profit After Tax and Minority Interests (PATMI) of S$162.7 million, up 14.9% over H1 FY2011.
Sales volume registered strong growth of 15.8% year-on-year to 4.52 million metric tons. Net Contribution (NC) improved 18.5% to S$607.1 million during the half year. NC Margin Per Ton grew by 2.4% from S$131 to S$134.
The relatively recession-resistant food category accounted for 77.6% of revenue and 83.2% of volumes. More importantly, this segment recorded strong NC growth of 32.1% and NC Per Ton growth of 12.2% over the previous period. The Industrial Raw Materials (IRM) segment accounted for 22.4% of revenue and 16.8% of the volumes in H1 FY2012, registering volume growth of 7.4%. Due to very difficult trading conditions, NC in this segment declined 24% compared to the previous period.
Olam’s Group Managing Director and CEO Sunny Verghese commented: “Our H1 FY2012 results reflect the resilience of the Olam model as we have continued to deliver positive operating results, even in periods of uncertainty and volatility in many global markets. The food and food-related segments of our business continue to demonstrate robust growth across businesses, geographies and value chain activities. This strong performance has helped to offset the results achieved in our industrial raw material business which is more recession-sensitive, and therefore continues to face demand and margin pressures.”
Olam’s Group CFO, Krishnan Ravikumar explained the results: “Our H1 FY2012 performance amidst a period of stress and volatility provides further validation of our strategy. We continue to focus on growing our business, both organically in our supply chain core and through acquisitions in the mid and upstream segments of the value chain. Our growth ambitions are supported by a strong and resilient balance sheet with adequate liquidity and the flexibility to perform across cycles.”