AGRIBUSINESS | Staff Reporter, Singapore

Olam's Q3 net profit down 5.5% to $15.1m

Higher depreciation charges took a jab on overall earnings.

Agri-business group Olam International has reported a slight decline in net profits for the quarter ending in September, as bottomline dipped 5.5% to $15.1m.

The group said this is mainly due to higher depreciation and amortisation charages.

Olam's financial statement revealed that depreciation and amortisation expenses rose by almost half at 43.5% to $82.6m.

Profits from the Confectionery & Beverage Ingredients and Food Staples & Packaged Foods offset declines in other business segments.

Earnings from confectionery & beverage ingredients rose to $68.6m while that of Foods Staples & Packaged Foods climbed to $60m

The two segment offset the huge decline in edible nuts, spices & vegetable ingredients at $65m from $90.3m last year.

Looking forward, Olam said the long-term trends in the agri-commodity sector remain attractive, with Olam being in a well-position to benefit as a core global supply chain business.

"Olam believes its diversified and well-balanced portfolio with leadership positions in many segments provides a resilient platform to navigate current uncertainties in global markets, and continues to execute on its strategic plan to invest in prioritised platforms between 2016 and 2021," the group stated. 

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