Olam reported its 3Q15 revenue up 4% YoY at S$4471.5m, with all segments registering growth except its Food Staples & Packaged Foods, which faced lower volumes, prices and continued underperformance of its upstream Dairy operations. And because of this, EBITDA slipped 18% to S$184.0m, while reported net profit tumbled 30% to S$31.0m; company noted that operational NPAT was actually up 6% at S$34.2m (but it included biological fair value gains of S$2.4m).

9M15 revenue though dipped 9% to S$13,604.2m, meeting 65% of our fullyear forecast, while reported net profit tumbled 67% to S$157.0m; but Olam noted that operational NPAT jumped 41% to S$258.0m, meeting about 65% of our FY15 estimate. We are likely to revise our numbers lower after the analyst briefing later. We also place our Hold rating and S$1.88 fair value under review.

Source: OCBC Research - 13 Nov 2015