Olam H2 profit falls 83.4% to S$38.4 million; pares proposed dividend to S$0.03 per share

AGRIBUSINESS giant Olam Group on Friday (Feb 28) reported a net profit of S$38.4 million for the second half ended Dec 31, down 83.4 per cent from S$230.8 million in the previous corresponding period.

This translated to earnings per share of S$0.0058 for the half-year period, down from S$0.0567 the previous year.

Earnings declined as earnings before interest and tax (Ebit) growth was offset by “a significant increase in net finance costs and higher net exceptional losses”, noted the group.

Finance costs for the half year rose to S$933.3 million from S$684.9 million.

The exceptional losses were mainly from the temporary cessation of operations at its food ingredients unit ofi’s onion and parsley processing plant, as well as the lease surrender and exit of two non-strategic almond orchards in the US.