[SINGAPORE] Olam Group posted a 574 per cent rise in net profit to S$323.8 million for its first half year ended Jun 30, from S$48 million in the previous corresponding period, based on its financials released on Thursday (Aug 14).
This includes profit from continuing operations of S$177.4 million, compared with a loss of S$92 million in the same period last year. The departing unit Olam Agri registered a net profit of S$146.4 million, up 4.6 per cent from S$140 million in H1 2024.
“The reversal of losses from continuing operations in H1 2024 to profitability in H1 2025 was mainly on account of the swing in earnings contribution from the Remaining Olam Group as it reported earnings before interest and tax (Ebit) of S$172.9 million in the current period versus a loss of S$93.4 million previously,” said the group.
Its food ingredient unit ofi reported an Ebit of S$535.8 million, up 12.7 per cent on the year. Both operating groups, namely the Remaining Olam Group and ofi, lifted group Ebit to S$708.7 million in H1 2025, from S$382.1 million in H1 2024.
Revenue of the entire group stood at S$33.3 billion, up 23.8 per cent on the year, on higher average sales prices due to increased input prices, namely cocoa and coffee in ofi, as well as volume growth coupled with price increases in rubber and edible oils in Olam Agri.
Revenue of the operating groups stood at S$15.3 billion, up 49.8 per cent from S$10.2 billion in H1 2024.
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Net finance costs from continuing operations amounted to S$551.7 million, 11 per cent higher on the year.
Earnings per share (EPS) of the entire group stood at S$0.0816, up from S$0.0084 in the prior-year period. In particular, EPS of continuing operations was S$0.0388, from a loss per share of S$0.0287 in H1 2024.
The proposed sale of its remaining 64.6 per cent interest in Olam Agri to Saudi Agricultural & Livestock Investment Company (Salic) was approved by shareholders during its extraordinary general meeting on Jul 4. The group updated that the first tranche is expected to complete upon meeting closing conditions and requisite regulatory approvals.
Olam Group co-founder and chief executive officer Sunny Verghese said: “Pursuant to the proposed sale of Olam Agri to Salic and the plan to responsibly divest the assets and businesses of the Remaining Olam Group, our focus is to prioritise ofi and support its efforts in realising its full potential value.”
The group declares an interim dividend of S$0.02 per share, down from S$0.03 per share declared for the same period last year. It will be payable on Aug 29, after record date on Aug 22.
Shares of Olam closed up 1 per cent, or S$0.01, at S$1.05 on Wednesday.
