The Group reported that 2022 was another year of strong operating performance and continued progress against its transformational re-organisation and ‘is standing ready to unlock greater value and right-size for our future after the successful carve-out of ofi and Olam Agri into new and innovative operating entities.’
Olam’s ofi’s cocoa business was recognised for its Cocoa Compass sustainability ambition in 2022, receiving the Sustainable Supply Chain of the Year at the Global Good Awards, as well as the Sustainability Innovation Award from Food Ingredients Europe. Further, in Nigeria Olam Agri’s Seeds for the Future Foundation expanded its initiatives for women’s empowerment to support women to develop commercial skills that can help them enhance their earning potential, the report stated.
The Group said it remains committed and prepared for the proposed listing of ofi in London and Singapore, which is expected to take place after the Olam Agri IPO. Both IPOs are subject to prevailing market conditions
Olam’s annual report also paints a picture of turbulence in the commodities markets: “The way we came together and responded throughout the year underlines the significant role we can play to support the challenges facing our global food system and the longer-term issues facing global food and agriculture. It underscores the competitive strengths, unique positioning in the marketplace and capabilities of our businesses, as well as reinforcing the merits of a transformation that aims to deliver sustained long-term growth and value creation for stakeholders.
“High food prices driven by supply disruptions, higher on-farm, production and transportation costs, increased energy prices and inflationary pressures are having an adverse impact on livelihoods, particularly in emerging markets. We expect commodity prices and supply chain disruptions to ease from the highs of 2021/2022 although geopolitical uncertainties, volatile market conditions and high interest rates are likely to persist. We have leveraged our global sourcing and origination network to minimise disruptions for customers and are monitoring the short- and longer-term effects for global food and agricultural supply chains.”
The report also details key updates and progress for the Group in 2022, including:
- A strong operating performance against a record prior year despite a highly challenging and volatile macroeconomic environment, which is testament that the Group’s strategy is sound and robust
- Re-organisation progress, notably the completion of a US$1.24 billion sale of a substantial minority stake in Olam Agri to SALIC1
- Plans to list Olam Agri as early as H1 2023, and continued commitment to an IPO for ofi, both subject to prevailing market conditions
- Significant turnaround for the gestating/continuing assets and incubating businesses under the Remaining Olam Group
- Progress and contribution of non-financial capitals – Manufactured, Intellectual, Intangible, Natural, Human and Social – to the Group’s ongoing performance.
Sunny Verghese, Co-Founder and Group CEO of Olam Group, said: “Our strong performance in 2022 was achieved through the collective and extraordinary efforts of our employees, our forged partnerships, the communities we serve, and the rest of our stakeholders. Our transformational Re-organisation Plan is enabling each of our operating groups to tap into the growing demand of their respective sectors, while championing sustainability and integrating digital technologies to transform how we serve customers and engage with farming communities.”