Singapore commodities group Olam International today (14 November) reported a 15% increase in quarterly profits.

Olam filed a net profit after tax and minority interests of S$34.2m (US$26.5m) for the first quarter of its financial year, which took in the three months to the end of September. Revenue jumped 31.6% to S$1.86bn.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Food accounts for over 80% of Olam’s revenue. The firm said turnover from its edible nuts, spices and beans division increased by over 22%, while revenue from its confectionery and beverage ingredients unit leapt 49.2%. The company said sales from its food staples and packaged food arm jumped 31.6%. All three businesses also saw the net contribution per tonne they make increase year-on-year.

However, Olam said its dairy unit in New Zealand “continued to face difficult trading conditions” amid uncertainty over the outlook for milk prices.

Nevertheless, MD and CEO Sunny Verghese said the company’s first-quarter results reflected the ability of the business to “deliver positive results through economic and commodity cycles”.

He added: “We are able to perform across these cycles due to the fact that our portfolio is focused mainly on food ingredients and raw materials which are inherently more recession-resistant. We also benefit from participation across multiple commodities, countries and value chain segments, creating a uniquely shaped and well-balanced portfolio.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Last week, Olam announced plans to buy Turkish hazelnut supplier Prodiga Group for TRL66m.

Click here for the full statement from Olam.