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