Financial results

Olam remains confident of ofi IPO after a rise in Group profits

By Anthony Myers

- Last updated on GMT

Olam believes it is 'well-positioned' for 2022. Pic: Olam Group
Olam believes it is 'well-positioned' for 2022. Pic: Olam Group

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The Olam Group said it remains cautiously optimistic about its prospects for the rest of the year, despite global supply chain issues, and confirmed it still intends to go ahead with the ofi IPO – favourable market conditions permitting.

The Singapore-headquartered group reported a net profit of S$429.1m for the first half of the fiscal year ended June 2022, up a marginal 1.8%  from S$421.5m in H1 2021 as higher finance costs partly offset strong Ebit (earnings before interest and tax) growth for the period.

Revenue for H1 2022 rose 24.6% on year to S$28.4bn from S$22.8bn the previous year, as the group recorded higher prices across several of its products and commodities.

Olam Group has been re-organised into new operating groups ofi, Olam Agri and the Remaining Olam Group. 

ofi is a global leader in ingredients, and includes its cocoa division, and is at the forefront of sustainable, natural and plant-based ingredients and solutions.

The Group believes it is “well-positioned for 2022 as the revised sales pricing and margin recovery gathers pace in H2 2022​” and expects to deliver better year-on-year performance for the full year.

Olam Co-Founder and Group CEO, Sunny Verghese, said: “Our strong operating performance in H1 2022 in a highly volatile geopolitical and macroeconomic environment continues to validate our strategy and the effectiveness of our Re-organisation. 

 “We remain committed and fully prepared to pursue an ofi IPO and demerger pending favourable market conditions, with a primary listing on the premium segment of LSE and a concurrent listing in Singapore.

“Our strategic partnership with SALIC expected to close by the end of the year will further catalyse Olam Agri’s growth. We are exploring a sale of additional 10% stake in Olam Agri to potential investors and/or prepare Olam Agri for an IPO and demerger based on market conditions.”

Olam’s board has declared an interim dividend of 4 Singapore cents per share, unchanged from a year ago.

Related topics Manufacturers Cocoa

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