SINGAPORE — Olam International Limited reported on Nov. 13 that operational profit after tax and minority interest for the third quarter were S$34.2 million, up 6.2% from S$32.3 million in the same period of last year.

Olam said all segments reported steady growth in the quarter with the exception of Food Staples & Packaged Foods. That segment reported earnings of S$31.1 million, down 27.1% from S$68.9 million in the third quarter of last year. Volumes fell 21.6% mainly due to lower traded volumes in Grains, Sugar and Rice. Revenue fell by 31.1% as a result of the lower volumes, as well as lower prices of all the commodities in this segment. The EBITDA was attributed to reduced volumes, continued underperformance of the dairy farming operations in Uruguay and the adverse impact of currency devaluation on the palm refining operations in Mozambique and the packaged foods business.

“We are pleased to have taken significant steps this quarter toward realizing our long-term strategy,” said Sunny Verghese, Olam’s co-founder, group managing director and chief executive officer.  “The addition of Mitsubishi Corporation as a new long-term strategic shareholder places us in a much stronger position to undertake further growth opportunities in our prioritized platforms. Further, the acquisition of ADM Cocoa makes us one of the top three integrated cocoa beans and products suppliers in the world, effectively transforming our competitive position in the industry.”

Overall sales volumes were up 3% to 3.2 billion tonnes and revenue was up 4% to S$4.47 billion.

On Oct. 16, Olam announced the completion of its acquisition of ADM’s cocoa business at an enterprise value of $1.204 billion. Post-acquisition, Olam Cocoa is now among the top three integrated global suppliers of cocoa beans and products. The closing value, estimated at $550 million in fixed assets and $654 million in working capital, is subject to the final purchase price adjustment post-closing.

Olam raised approximately S$915 million by issuing 332.73 million new ordinary shares to the Mitsubishi Corporation at S$2.75 per new share, representing approximately 12% of the Olam’s enlarged and paid-up share capital (excluding treasury shares) upon completion.

The transaction sets the platform for a long-term strategic partnership between Olam and Mitsubishi Corporation that leverages the strengths of both companies to increase their participation in the Japanese market and collaborate in mutually beneficial business opportunities, Olam said.

Mitsubishi Corporation, in a separate and independent transaction, also acquired 222 million shares from the Kewalram Chanrai Group, representing approximately 8% of the enlarged and paid-up share capital (excluding treasury shares) of Olam immediately after the new shares issuance.

With these two transactions, the Mitsubishi Corporation is now Olam’s second largest shareholder with a 20% stake in Olam. Temasek Holdings remains Olam’s majority shareholder with a 51.4% stake.

The long-term trends in the agri-commodity sector remain attractive, and Olam is well-positioned to benefit from this as a core global supply chain business with selective integration into higher value upstream and mid/downstream segments, the company said. Olam believes its diversified portfolio with leadership positions in many segments provides a resilient platform to navigate uncertainties in global markets.