Thanks to the improved operational performance.
Olam International reported a net profit for the quarter ending in December, reversing its loss of $269.4m to a gain of $102m.
Net finance costs came down from $121.3m to $112.0m on continued initiatives to optimise loan tenures and reduce borrowing costs. This helped to partly offset the increase in depreciation and amortisation on account of the acquisition of the Cocoa processing, wheat milling and peanut shelling assets.
Sales volumes grew 14.0% on volume growth recorded by the Food Staples & Packaged Foods and Industrial Raw Materials, Ag Logistics & Infrastructure segments. Revenues were up by 12.1% to $6.1b.
Olam co-founder and CEO Sunny Verghese said the group made steady progress in 2016 by executing on its refreshed Strategic Plan going into 2018 through targeted organic and inorganic investments in our prioritised platforms.
“We have also improved shareholder returns through share buybacks and enhanced dividend distribution in 2016. Looking ahead, we will continue to pursue our governing objective of maximising long-term intrinsic value for our continuing shareholders,” the executive said.
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