Temasek Holdings-controlled Olam International posted a loss in the fourth quarter due to a one-time hit, although the commodities trader remains upbeat on its core food business despite the rout in markets.
In a filing to the Singapore Exchange on Monday, Olam reported a loss of S$221.3 million ($157.2 million) in the fourth quarter, including a one-time fair value loss of S$192.6 million from Olam's investment in PureCircle, which produces the natural sweetener stevia.
Despite the loss, Olam said it clocked growth over the year in earnings before interest, tax, depreciation and amortization in three of its five businesses -- nuts and spices, confectionery and commodity financial services. Fourth quarter EBITDA rose 10.5 percent from a year ago, while full-year EBITDA rose 1.5 percent.
The company also has businesses in industrial raw materials and food staples & packaged foods.
Losses in PureCircle are due to a change in the fair value representation of the company, it explained.
Olam chief executive Sunny Verghese told CNBC's Squawk Box the company is now factoring the losses into its balance sheet, as recommended by its auditors. The move doesn't affect equity or cash flow, the company said.
Olam's earnings were also hit as Olam paid for its purchase of the cocoa business of ADM, bought back previously issued bonds and paid for a restructuring of its dairy business in Uruguay.