Olam

Olam: 1Q rev came in at $2.46b +30.6%yoy, -23.4%qoq. Net profit was $29.7m +56.1%yoy, -67.7%qoq. Net profit margins increased to 1.2% compared to 1.0%yoy but fell from 2.9%qoq. Fall in quarter partly attributed to seasonality, historically 1Q results is the poorest. Drivers for rev were higher wheat mkt share in East and South America and increased mkt share in the Aus and US cotton mkt. Margins generally improved in all segments…

EPS at 1.44c generally met expectations. MS maintains Buy, UOBKH maintains Buy at TP $3.80. Cites volume and margin growth as positives. There has been no update on talks with Louis Dreyfus yet and a commodity fund was launched with US$30m and other investors' funds, contributed to $4.4m in profit.