Feb. 14 (Bloomberg) -- Olam International Ltd., a trader of agricultural commodities, said second-quarter profit declined 13 percent amid an increase in expenses and a drop in sales volumes.
Net income was S$134.9 million ($107 million) in the three months ended Dec. 31, compared with S$154.1 million a year earlier, Singapore-based Olam said today in a statement. Sales dropped 8 percent to S$4.5 billion.
Olam, one of the world’s top three coffee and rice traders, is cutting spending and selling assets to address investor concern about cash flow after short-seller Carson Block questioned the company’s finances. Olam announced three disposals in the quarter, including almond orchards in Australia and a stake in a dairy company.
“We are encouraged by the overall performance in this first year following the announcement of our revised strategic plan,” Executive Director Anantharaman Shekhar said in the statement today.
The stock was unchanged at S$1.535 at the close yesterday. The results were announced today before trading started.
Sales volumes fell 9.8 percent in the quarter, Olam said in the statement today.
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