SINGAPORE: Mainboard-listed Olam International, one of the world’s biggest traders of agricultural commodities, announced here the other day a 92.1 per cent slide to $31.26 million in net profit for its first quarter ended March 31, 2015, from $396.13 million for the year-ago period.
Olam said net earnings plunged on the back of a net exceptional loss of $97.2 million in the quarter, mainly from the buyback of outstanding US$750 million worth of 6.75 per cent bonds due 2018, while net earnings in the year-ago period had included an exceptional gain of $293.9 million.
It added that the bond buyback is expected to generate interest cost savings of $55.0-60.0 million per annum over the next 3 years.
Olam said sales volume for the quarter fell 33.2 per cent as a result of its deliberate strategy to grow in prioritised platforms while reducing volumes or exiting from lower-margin business. Revenue declined 10.7 per cent to $4.3 billion as lower volumes were offset by higher prices of some commodities.
