The growth in earnings during this quarter was a result of an 18.7% increase in sales volume and a 16.9% increase in net contribution. All four business segments, namely Edible Nuts, Spices & Beans, Confectionery & Beverage Ingredients, Food Staples & Packaged Foods and Industrial Raw Materials, contributed to the growth in sales volume, sales revenue and NC.
“We’re pleased to report that all four business segments have contributed to the top and bottom line performance of the company,” said Olam’s CFO, Krishnan Ravikumar. “The industrial raw materials segment has seen a marked turnaround in performance after facing a difficult prior year as a result of the global economic slowdown. During the quarter, the company also undertook a series of capital-raising initiatives that has built significant financial flexibility for the company, positioning it to take advantage of the emerging opportunities as the global economy begins to recover.
“During the quarter, the company completed US$300m equity capital raising from Temasek Holdings, issued US$500m of 7-year convertible bonds at a 25% conversion premium, and launched a US$850m term loan syndicated bank loan facility.”
Source: Olam
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