Singapore-based conglomerate Olam International has reported a jump in annual profits as turnover climbed by almost a quarter, driven by higher commodity prices.
Olam yesterday (29 August) reported net profit of S$444.6m (US$368.5m) for the year to the end of June, up 23.6% on the year. Excluding negative goodwill on acquisitions, Olam posted a 37.1% increase in net profit to S$372.8m.
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Revenue, meanwhile, was up 50.6% at S$15.73bn on the back of a 20.6% increase in volumes.
Profits and volumes improved across Olam’s five divisions, the company said.
MD and CEO Sunny Verghese said Olam’s “record results” reflect the “resilience” of the company’s business model “to perform across economic and commodity cycles”.
Verghese said: “Our ability to achieve this consistency in performance despite the volatility that has now become a way of life in our markets is a function of our well balanced and diversified portfolio – across 20 products, focused primarily on the agri-complex and 65 countries – and our unique business model.
“In that model we aim to out-originate competition through effective farmgate sourcing, selectively and differentially integrate across the value chain, providing differentiated and customised marketing solutions and services. This model is supported by our strong control systems and risk management capabilities.”
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