SINGAPORE Aug 29 Singapore commodities firm
Olam International Ltd reported a 48 percent fall in
fourth-quarter net profit, citing higher tax charges and
challenging market conditions.
Olam posted net profit of S$56.8 million ($44.4 million) for
the three months ended in June, down from S$109.5 million a year
earlier. The result lagged the average net profit forecast of
S$75.4 million from three analysts polled by Reuters.
The company's earnings in the fourth quarter were hit by
increased tax charges of S$50.6 million, compared to a net tax
credit of S$8.2 million a year earlier.
"While the long term trends in the agri-sector remain
attractive, the nearer term macroeconomic uncertainty and
increased volatility could impact the sector," Olam said in a
The company had dropped its target to achieve a $1 billion
net profit by 2016 and has shifted to a slower growth path after
an attack by short-seller Muddy Waters last year sent its stock
and bond prices tumbling.
Olam has a 12-month forward price-earnings ratio of 9.0,
compared to an average of 17.2 for 115 companies in the food and
staples retailing sector in developed Asia Pacific.
($1 = 1.2783 Singapore dollars)
(Reporting by Eveline Danubrata; Additional reporting by Tripti
Kalro; Editing by Rachel Armstrong)