Net income was S$45.6 million ($36.6 million) in the three months ended Sept. 30, compared with S$43.2 million a year earlier, Singapore-based Olam said today in a statement. Sales declined 7.9 percent to S$4.3 billion due to lower commodity prices, it said.
Olam, which sells commodities from rice to cocoa, is cutting spending and selling assets as part of a business review in April that followed allegations by short-seller Muddy Waters LLC questioning its finances. The company announced yesterday an agreement to sell and lease back almond orchards in Australia for A$200 million ($186 million) to improve cash flow and return on capital.
“We are particularly pleased with the improvement in free cash flow generation in this quarter, which is a priority for us,” Chief Executive Officer Sunny Verghese said in the statement.
The shares advanced 1.7 percent to S$1.495 at the Singapore close, before the results announcement.
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