This was due to better operations.
Olam International Limited reported an increase in net profit for the quarter ending in March, up 26.5% to $143.8m.
According to the group, this was primarily due to improving operational performance, which offset higher depreciation and amortisation and finance costs resulting from strategic acquisitions and capital investments made in 2016.
The group reported higher earnings before interest, tax, depreciation, and amortisation (EBITDA) at $398.6m, thanks to the healthy growth from edible nuts, spices & vegetable ingredients and food staples & packaged foods which offset lower contribution from the confectionery & beverage ingredients as well as industrial raw materials and logistics & infrastructure segments.
Meanwhile, its sales revenues were up 21.9% while sales volumes were up 50.5% largely on opportunistic trading volumes in the grains segment in Q1.
Check out the how the group’s segments performed below:
Revenue for the Edible Nuts, Spices & Vegetable Ingredients segment grew 18.8% on higher volumes during the quarter, as well as higher prices for cashews and almonds compared with Q1 2016. EBITDA grew 72.1% on improved contribution from the Edible Nuts platform, particularly peanuts, cashew and almonds.
The Confectionery & Beverage Ingredients segment recorded a 7.2% decrease in revenue on lower volumes and lower cocoa prices, partly offset by higher coffee prices. EBITDA declined 28.7% as improved contribution from Coffee was offset by lower contribution from Cocoa – a result of margin pressure on its supply chain and trading caused by sharp market movements in late 2016 and early 2017.
The Food Staples & Packaged Foods segment saw a 64.4% increase in revenue mainly on opportunistic trading volumes in Grains. EBITDA rose 38.0% as all platforms within the segment recorded improved performance over Q1 2016. Grains was a key growth driver as its origination and trading business, as well as its wheat milling operations in West Africa, continued to perform well.
Revenue for the Industrial Raw Materials, Ag Logistics & Infrastructure segment increased by 52.5% on higher volumes and higher cotton prices. However, EBITDA declined by 4.6% as underperformance from Wood Products offset growth from Cotton.
Commodity Financial Services recorded an EBITDA of S$5.1 million in Q1 2017 compared to a loss of S$3.5 million in Q1 2016.