Financial results

OFI remains on course for London listing

By Anthony Myers contact

- Last updated on GMT

Olam International (OIL) is the parent company of OFI and OGA. Pic: OIL
Olam International (OIL) is the parent company of OFI and OGA. Pic: OIL

Related tags: ofi, Olam

Singapore-based Olam, OFI’s parent company, said it is tracking global markets following Russia's invasion of Ukraine this week to determine the potential impact on the timing.

Olam Food Ingredients (ofiI) remains on course to pursue a primary listing on the London Stock Exchange and a secondary listing in Singapore in the first half of 2022, Olam co-founder and group CEO Sunny Verghese said in a call to analysts after the release of the company's Full Year Results 2021.

Reuters reports that Singapore-based Olam, OFI’s parent company, is considering raising £2bn ($2.7 billion) through the London listing, which would make it one of the biggest London IPOs in years. 

Olam is one of the world's biggest agricultural commodity traders, restructured into three new business units in 2021, comprising:

Olam Food Ingredients (ofi) to provide traceable solutions across cocoa, coffee, nuts, spices and dairy to the bakery, confectionery, beverage and snacking industry.

Olam Global Agri (OGA), supplying food, feed and fibre to meet rising demand and a shift to protein-based diets.

Olam International (OIL), as the parent company of OFI and OGA.

The update was announced in Olam’s Full Year Financial results, where revenue increased 18.8% to S$14.6bn ($10.76bn), driven by growth from the Ingredients & Solutions segment.

EBIT grew strongly at 16.8% to S$875.3m, demonstrating a strong recovery from the impact that Covid-19 had on some of its businesses in 2020, with both its segments performing well, the company said in a statement to the media.

"We are controlling everything that we can control in making sure that we can complete the IPO and the concurrent demerger of OFI from the Olam group in the second quarter of this year​," Olam co-founder and group CEO Sunny Verghese said in a results call on Monday.

OFI revenue increased 18.8% to S$14.6bn, driven by growth from the Ingredients & Solutions segment.

EBIT grew strongly at 16.8% to S$875.3m, demonstrating a strong recovery from the impact that Covid-19 had on some of its businesses in 2020, with both its segments performing well. 

A. Shekhar, CEO of ofi, said: “I am very proud of the strong growth and strategic progress we are delivering as we continue to accelerate our focus to provide natural and on-trend ingredients and solutions to our established and diverse customer base across the global food and beverages industry. The strength and breadth of our sustainable ingredients portfolio and the determination of our people behind our purpose to ‘Be the Change for Good Food and a Healthy Future’ have been key drivers of our performance in 2021 and helped in our resilient recovery from the COVID-19 impact in 2020.

2021 was an important year for ofi, and we made substantial investments in expanding the portfolio as well as in developing our talent pool and capabilities to support our future growth ambitions. We are excited by the opportunities and well positioned with a robust, resilient business model and a strong organisation to navigate the ongoing market uncertainties and continue on our exciting growth journey.”

  • Read OIL Full results here

Related topics: Markets, Cocoa & Sugar

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