Olam reported its 2Q15 results this morning, with revenue down 16% YoY to S$4811.6m; this on the back of reduced volumes (down 17%) as it continues to restructure lower margin businesses as part of its strategic plan objectives. But thanks to improved margins, reported NPAT though jumped 197.6% to S$94.7m; excluding one-off items, operational NPAT still grew 96% to S$95.2m.

1H15 revenue was down 14% at S$7516.3m, meeting 44% of our full-year forecast, while reported NPAT tumbled 70.6% to S$126.0m; operational NPAT was actually up 48% at S$223.7m, or about 51% of our FY15 forecast. Olam declared an interim dividend of S$0.025/share, versus S$0.075 (S$0.05 final and S$0.025 special) last year. Pending the analyst briefing later, we place our Hold rating and S$2.30 fair value under review

Source: OCBC Research - 14 Aug 2015