SINGAPORE: Olam International has swung into the red in the fourth quarter, after writing down its investment in sugar producer PureCircle Limited (PCL).
The commodities giant posted a net loss of S$221.3 million for the three months ended in December. In the same period a year ago, Olam made a net profit of S$118.7 million.
Other net exceptional losses of S$103.5 million were attributed to restructuring costs and transaction-related costs in the acquisition of ADM Cocoa and buyback of convertible bonds.
For the full year, Olam reported a net loss of S$64.3 million. Meanwhile, revenue for the fourth quarter came in at S$5.44 billion, a climb of 11.7 per cent year-on-year.
Despite the results, Olam said it will continue to look for acquisition opportunities.
Said Mr Sunny Verghese, co-founder and group CEO of Olam International: "The market offers a lot of opportunities with assets dislocated from fair values, so it is a good opportunity but we are going to be very disciplined how we acquire and what we acquire.
"We have also changed stance. From acquiring on a string of pearls strategy in the past - which was all small bite-sized transactions but we did several of them - to fewer transactions, but things that will be clearly moving the needle for us."