Olam International reported Wednesday its third quarter net profit fell 1.5 percent on-year to S$20.37 million, hit by changes to accounting for leases.
Excluding exceptional losses and the impact of changes to accounting for leases, net profit would have increased 30.4 percent on-year to S$27 million, Olam said.
Sales of goods and services for the quarter ended 30 September edged up 0.2 percent to S$8.31 billion, the agri-business said in a filing to SGX.
“In the third quarter of 2019 we delivered another steady set of operational results with all food category segments performing better than last year amid continued market volatility,” Sunny Verghese, co-founder and group CEO, said in the statement.
Other income fell 21.6 percent in the quarter to S$6.33 million, Olam said.
Other expenses climbed 15.3 percent on-year to S$422.01 million, the filing said.
The share of profit from jointly controlled entities and associates jumped 163.2 percent on-year to S$15.67 million on higher contributions from MC Agri Alliance and GSEZ, Olam said.
Edible nuts and spices posted revenue of S$1.20 billion, up from S$1.10 billion in the year-ago quarter.
Confectionery and beverage ingredients reported revenue of S$1.63 billion for the quarter, down from S$1.67 billion in the year-ago period.
Food staples and packaged goods posted revenue of S$4.48 billion, up from S$4.3 billion in the year-ago period.
Olam issued an optimistic update.
“Even as political and economic uncertainties continue to affect global trading conditions for the rest of the year, Olam believes its diversified and well-balanced portfolio provides a resilient platform to navigate the challenges in both the global economy and commodity markets,” the company said.
“Olam is executing on the four strategic pathways for growth as set out in the 2019-2024 Strategic Plan,” it added.