SINGAPORE — Olam International Limited reported on Feb. 7 a 21.3% growth in Profit After Tax and Minority Interest (PATMI) of S$197.3 million for the first-quarter of 2013, compared to S$162.7 million in the same period a year ago.
Excluding exceptional items, PATMI increased by 10.1% to S$179.2 million in the first quarter. Sales revenue increased by 24.3% to S$9.59 billion as sales volume grew 71.9% to 7.8 million tonnes.
The grains business continued to lead volume growth as it generated higher origination and milling volumes. Rice, palm and the larger packaged food businesses also contributed to volume growth. Net contributions (NC) per tonne fell to S$55 from S$94 a year ago mainly due to the changing product mix within the segment. The period saw a larger increase in grains origination volumes which has a structurally lower NC per tonne compared to the other product platforms in the segment. The Rice, palm and packaged food businesses continued to perform well while the dairy business was behind plan, Olam said.
“The company’s first-quarter results show substantial increase in volumes and sales revenues which underpinned the growth in overall NC,” said Olam’s Executive Director of Finance and Business Development Shekhar Anantharaman. “It is encouraging to note that growth in earnings in the quarter was driven by both the core business as well as the investments made in the recent past.”