Olam International, a supplier of both raw and processed agricultural commodities, on Wednesday said net profit rose 17.5 percent in the third quarter due to strong volume growth and improved operational performance across most segments .
Net profit grew to S$24.1 million in the three months ended September 30 from S$20.5 million in the corresponding period last year, the company said in a regulatory filing.
Revenue advanced 41.7 percent to S$6.71 billion from the preceding year, as its traded volume almost doubled to 5.8 million tonnes from 3.8 million tonnes.
Revenue for its edible nuts, spices and vegetable ingredients segment grew 19.4 percent to S$3.3 billion in the 9-month period, mainly on higher volumes from spices and sesame and higher almond and cashew prices from last year.
Singapore-based Olam, which started operation in Nigeria in 1989 with purchases of cashew nuts, cocoa and shea nuts, is now one of the world's largest food traders with its presence in 70 countries. Last year, 16 percent of its revenue of $20.6 billion came from Africa, led by Nigeria.
"While we are very encouraged by our good performance to date, we are cautious about near-term market uncertainties in some agri-commodities which may impact us," Chief Executive Sunny Verghese said in a statement.
Shares in the company were down 1.8 percent at S$2.24 on the Singapore Exchange.
