Olam reported its 2Q16 results this morning, with revenue rising 3% YoY to US$3482.0m, driven by 20% higher sales volumes in all segments except Edible Nuts, Spices & Vegetable Ingredients; but mitigated by lower prices of certain commodities. Reported PATMI came at S$114.9m, +20%, boosted by improved operational performance in the overall Food Category; operational PATMI was up 19% at S$114.8m.

1H16 revenue grew 6.7% to S$9742.8m, meeting 46% of our full-year forecast, while PATMI jumped 73% to S$132.1m; operational PATMI eased 3% to S$221.3m, but still met 57% of our FY16 estimate. Olam declared an interim dividend of S$0.03/share, versus S$0.025 in 1H15. However, due to low liquidity as well as a reshuffling of internal resources, we are CEASING COVERAGE on the stock.  

Source: OCBC Research - 12 Aug 2016