Bolstered by BUA, Schluter Acquisitions, Olam Posts 6% Revenue Growth For Q3

Olam

Olam International Limited, the food and agriculture  commodity giant said its gross revenue for the third quarter of the year rose by 6% t0 SGD4.7 billion compared to SGD4.4 billion for last year.

Net revenue for the third quarter fell to SGD20.5 million compared to SGD25.7 million in the previous year.

The result is coming on the back of series of acquisitions in Nigeria, Gabon and Mozambique.

In Nigeria, Olam said it acquired wheat milling assets of BUA Group. This it said shoot up its food and staples output by 17,9%. The company also acquired assets of Brooks Peanut Company. It acquired 100.0% of East African coffee specialist Schluter S.A. for USD7.5 million.

Olam International also said “the Group’s 30:70 joint venture with strategic partner Mitsubishi Corporation, MC Agri Alliance, commenced operations on October 1, 2016. The joint venture imports and distributes coffee, cocoa, sesame, edible nuts, spices, vegetable ingredients and tomato products for the Japanese market”.

Others include palm and palm oil assets from SIAT Gabon for USD4.6 million through 60.0% owned joint venture Olam Palm Gabon. The group also said it acquired remaining 50.0% in Acacia Investments (palm refining assets in Mozambique) for USD24.0 million.

Commenting on the result, Olam’s Co-Founder and Group CEO Sunny Verghese said: “Our differentiated strategy
has enabled us to deliver improved performance year-to-date under challenging conditions. We continue to explore selective opportunities in our prioritised platforms, while remaining focused on ensuring the performance of our gestating assets.”

Olam’s Executive Director and Group COO, A. Shekhar said: “We have taken several steps during the quarter to further strengthen our balance sheet, including a benchmark perpetual bond issuance, tap of our senior bonds and refinancing of our syndicated loans.”

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