Press Release

    Q1 FY2014 Results: PATMI UP 5.7%, EBITDA Up 11.7%, Good Progress On Strategy Implementation And Cash Flow Generation

    Press release
    A$200m sale and lease back of Australia almond plantation assets
    • PATMI up 5.7% to S$45.6 million, on the back of 11.7% EBITDA growth driven by margin expansion in upstream and midstream activities and organic growth in core supply chain activities
    • Maintained Sales Volume at 3.67 million metric tonnes in line with high-growth Q1 FY2013. Sales Revenue declined by 7.9% due to lower commodity prices
    • Improvement in Free Cash Flow to Firm (FCFF) from negative S$706.8 million in Q1 FY2013 to positive S$46.0 million in Q1 FY2014
    • A$220m cash to be released from sale and lease back of almond plantation assets and sale of cotton gin in Australia
     

    Consolidated Financial Results ended 30 Sep 2013

    Q1 FY2014

    Q1 FY2013

    % Change

    Sales Volume (’000 MT)

    3,668.7

    3,680.6

    (0.3)

    Sales Revenue (S$ million)

    4,321.0

    4,689.1

    (7.9)

    EBITDA (S$ million)

    248.9

    222.7

    11.7

    PAT (S$ million)

    43.2

    41.8

    3.4

    PATMI (S$ million)

    45.6

    43.2

    5.7

    Olam’s Group Managing Director and CEO, Sunny Verghese said: “The first quarter results demonstrate a good start to our new financial year as we continue to make progress on our strategy. Our focus on margin enhancement and cost efficiency is reflected in these latest results. We are particularly pleased with the improvement in free cash flow generation in this quarter, which is a priority for us.

    “The sale and lease back of our almond orchards and the sale of the Dirranbandi cotton gin in Australia are further steps in executing the strategy that we announced in April 2013. These two transactions and other similar initiatives that are being worked on will allow the Company to unlock value while pursuing profitable growth.”

    Olam’s Executive Director of Finance and Business Development, A. Shekhar said: “Our segments performed well, with most registering increased volumes despite the challenging industry environment.

    “Our strategy to expand selectively into the upstream and midstream segments has given us improved margins, which contributed substantially to our EBITDA growth. The trajectory of the EBITDA and PATMI growth in Q1 FY2014, especially when seen in comparison to the very strong Q1 FY2013, gives us further confidence that we will meet our plan targets for FY2014.”

    Outlook and Prospects

    Mr Verghese said: “The Company’s diversified portfolio with established leadership positions in many of our segments means we are well-placed to navigate the uncertainties and volatility in global commodities markets. Given the progress made against the strategic plan targets in Q1 FY2014, we are on track to deliver both earnings growth and free cash flow for the full year FY2014.”

    The Company is on track to generate positive FCFF for FY2014 based on its continued efforts to drive higher operating cash flow generation from its existing business, unlocking value from past investments, reduced pace of fixed capital investments and expected changes in working capital for the rest of the year on projected organic growth at current prices.

    Please click on the links on left side to access the full press release, financial statements, management discussion and analysis, and presentation on the announcement

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    About Olam International Limited

    Olam International is a leading agri-business operating across the value chain, supplying various products across 16 platforms to over 13,600 customers worldwide. From a direct presence in more than 65 countries with sourcing and processing in most major producing countries, Olam has built a global leadership position in many of its businesses. Headquartered in Singapore and listed on the SGX-ST on February 11, 2005, Olam is a component stock in the Straits Times Index (STI), MSCI Singapore Free, S&P Agribusiness Index and the DAXglobal Agribusiness Index. Olam is the only Singapore firm to be named in the 2009, 2010 and 2012 Forbes Asia Fabulous 50, an annual list of 50 big-cap and most profitable firms in the region. It is also the first and only Singapore company to be named in the 2009 lists for the Global Top Companies for Leaders and the Top Companies for Leaders in the Asia Pacific region by Hewitt Associates, the RBL Group and Fortune.

    More information on Olam can be found at www.olamgroup.com.

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