AOI’s first half volumes increased

Alliance One International’s volumes during the six months to the end of September, at 150.0 million kg, were increased by 6.8 percent on those of the six months to the end of September 2015.

In announcing its results for the first six months and second quarter, Alliance said the volume increase during the first six months was down to improved full service customer requirements.

Sales decreased by 4.5 percent to $650.5 million driven by El Niño impacts on the Brazilian crop, timing of shipments, the stronger US dollar and a product mix that favored by-products this year.

Gross profit was said to have remained consistent at $84.3 million despite about $24.0 million of impact related to El Niño effects on the Brazilian crop, as well as $8.7 million of lower cost of market adjustments this year.

Gross profit as a percentage of sales improved to 13.0 percent from 12.4 percent last year, helped by efficiency and cost reduction initiatives.

CEO and president, Pieter Sikkel, said that Alliance’s results for the first six months included increased full service volumes and improved factory efficiencies, due in part to the company’s restructuring and efficiency improvement program.

“Offsetting some of our improvements were the challenges created by El Niño related wet weather in southern Brazil this year that has reduced gross profit by approximately $24.0 million versus last year,” he said.

“For the full year we expect approximately a $30.0 million negative impact to gross profit and approximately a $5.0 million negative impact to equity in net income (loss) of investee companies from our Brazilian joint venture.”