World Grain - June 2019 - 13

Strong start for strategic plan delivers for Olam
SINGAPORE - Olam International have decided to exit the sugar busi- 2018, due to intense competition in the
has started well in executing the four ness, and we have already acted on it," merchandising business in hinterland of
key pathways of its 2019-24 strate- Muthukumar said. "And we have closed Western Africa, we had lowered down
gic plan, including the recent acquisi- down our sugar trading business desks our indent or merchandising volumes in
tion of BT Cocoa in Indonesia and the both in London and Singapore and that Africa. And that has continued to be the
proposed acquisition of Dangote Flour has had an impact in terms of a com- FDVHLQWKH¿UVWTXDUWHURI$QGWKDW
Mills in Nigeria.
parative EBITDA contribution. And as has also resulted in a lower contribution
3UR¿W DIWHU WD[ DQG PLQRULW\ LQWHU- we had indicated in the second half of relatively in the rice platform."
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March 31 was S$168.8 million (U.S.
$123 million), up nearly 7% from
S$157.9 million in the same period a
year ago.
Revenue for the quarter was S$7.348
billion (U.S. $5.355 billion), up 17%
from S$6.295 billion a year ago. Sales
volume was 8.461 million tonnes in
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of 2018.
"We are pleased to announce a very
strong start in executing our six-year straWHJLFSODQDQGWKDWLVUHÀHFWHGLQRXU¿UVW
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to 8.5 million tonnes; EBITDA up 14.2%
SERVICE * QUALITY * DELIVERY
to S$420 million from S$368 million;
more importantly our key operational
metric that we track and report, our operational PATMI, up 11.3% at S$181 million,
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of 2018," Neelamani Muthukumar, presiGHQWDQGJURXSFKLHI¿QDQFLDORI¿FHUVDLG
during a May 14 conference call with analysts. "Coming back on a very strong free
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S$1 billion, we are pleased to announce
that we have generated further free cash
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quarter of 2019. And all of these have resulted in terms of increased operational
earnings and also very prudent balance
sheet management at a certain lower gearing of 1.35x, down from 1.49x this time
last year."
Olam's Food Staples & Packaged
Foods earnings before interest, tax, depreciation and amortization (EBITDA)
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S$82.3 million, down 18% from a year
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from sugar and rice. Revenues, meanwhile, rose 33% to S$3.5 billion, primarily driven by growth in grains trading.
Drag Conveyors, Enclosed Belt Conveyors, Bucket Elevator Legs
"As part of the strategic plan, we

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