Olam

Olam Group reported a 9.2% year-on-year increase in EBIT to S$1.9 billion for 2024 amid continued headwinds and volatility, as growth from ofi and Olam Agri offset higher losses from Remaining Olam Group. PATMI declined as the higher EBIT was offset by an increase in net finance costs.   ofi saw double-digit EBIT growth of 29.1% YoY to S$1,070.7 million, led by Ingredients & Solutions segment that grew 41.8%. It continues to be well-positioned to support and add value to customers and deliver on its medium term guidance of high single-digit adjusted EBIT growth and improve returns.   Olam Agri's EBIT increased 5.8% to S$1,023.8 million, led by a 32.2% YoY growth in Fibre, Agri-Industrials & Ag Services. It will continue to profitably grow the three segments in its portfolio.   Following the recent announcement on the proposed sale of Olam Agri to SALIC, the Group will focus on seeking strategic options to unlock value for the Remaining Olam Group businesses and ofi, including the pursuit of an ofi IPO.   The Board has recommended a second and final dividend of 3.0 cents per share, taking total dividends to 6.0 cents per share for 2024.   Read the full release here: https://lnkd.in/gdWM7M8Q

We have marked another key milestone in our Re-organisation journey, with the proposed sale of Olam Group’s remaining 64.57% stake in Olam Agri to SALIC. Olam Group Limited or OGL will sell a 44.58% stake in Olam Agri to SALIC for approximately US$1.78 billion, at an implied 100% equity valuation for Olam Agri of US$4.00 billion. This is 23% higher than the current US$3.25 billion market capitalisation of the entire Group, consisting of Olam Agri, ofi and the Remaining Olam Group. At the completion of the above tranche, expected for Q4 2025, OGL will have a put option to sell its remaining 19.99% stake in Olam Agri to SALIC, exercisable on the third anniversary of completion. Upon completion of both these tranches, Olam Agri will be a 100% owned subsidiary of SALIC. OGL continues to hold a 100% interest in ofi and the Remaining Olam Group. The Board will in time determine the use of the gross proceeds from the transaction, which may include debt repayment, right-sizing the capital structure of OGL and ofi, as well as a possible one-time special dividend distribution. Read the full release here: https://lnkd.in/gy8yzzn9

Today marks another key milestone in our Re-organisation journey, with the proposed sale of Olam Group’s remaining 64.57% stake in Olam Agri to SALIC. Olam Group Limited or OGL will sell a 44.58% stake in Olam Agri to SALIC for approximately US$1.78 billion, at an implied 100% equity valuation for Olam Agri of US$4.00 billion. This is 23% higher than the current US$3.25 billion market capitalisation of the entire Group, consisting of Olam Agri, ofi and the Remaining Olam Group. At the completion of the above tranche, expected for Q4 2025, OGL will have a put option to sell its remaining 19.99% stake in Olam Agri to SALIC, exercisable on the third anniversary of completion. Upon completion of both these tranches, Olam Agri will be a 100% owned subsidiary of SALIC. OGL continues to hold a 100% interest in ofi and the Remaining Olam Group. The Board will in time determine the use of the gross proceeds from the transaction, which may include debt repayment, right-sizing the capital structure of OGL and ofi, as well as a possible one-time special dividend distribution. With this transaction, the Group can now focus its attention on seeking strategic options to unlock value for the Remaining Olam Group and ofi, including the pursuit of an ofi IPO. Read the full release here: https://lnkd.in/gNH7z2Ck

H1 2024 revenue increased 9.1% YoY to S$26.9 billion mainly on higher sales volumes. EBIT grew 8.3% to S$888.0 million with strong growth from ofi. PATMI held steady as EBIT growth was offset by the increase in net finance costs and higher taxes.   ofi saw a 71.5% YoY growth in EBIT to S$475.5 million on the back of a strong performance in the Ingredients & Solutions segment, which further reinforced the benefits of an integrated business model, a well-diversified portfolio, differentiated supply chain strengths and balance sheet flexibility to its customers.   Olam Agri's EBIT decreased 8.4% to S$512.0 million against a strong H1 2023. The Food & Feed - Processing & Value-Added segment delivers continued growth even against its exceptional H1 2023 results.   The Board has declared interim dividend of 3.0 cents per share, unchanged from H1 2023.   Read the full release here: https://lnkd.in/ggy8ziyf   #Olam1H2024Results

President of the Republic of Singapore, Tharman Shanmugaratnam, has recognised Olam for its commitment to integrating natural capital assessments throughout its operations. Speaking at the Lee Kuan Yew Water Prize 2024 ceremony at The Fullerton Bay Hotel, President Tharman highlighted Olam as an example of a company that takes sustainability seriously.    "[The company] knows that it has to preserve sustainability upstream, not just in the plant where it's doing the manufacturing or the processing," he emphasised.    Accounting for natural capital enables us to grow our business sustainably, alongside our customers, suppliers, and stakeholders.     Read the full article here: https://lnkd.in/gc4BfGwh 

We are excited to have been included as Top 5 in the inaugural FORTUNE Southeast Asia 500 and to have been recognised as one of the region’s largest companies! As a leading food and agri-business, we remain focused on addressing the challenges involved in meeting the needs of a growing global population, while achieving positive impact for farming communities, our planet and all our stakeholders. Check out the complete list here: https://lnkd.in/gaTQuWph #FortuneSEA500 #Fortune

Our Group CFO, Neelamani MuthuKumar, will be speaking at an ideation roundtable at the upcoming Asia Infrastructure Forum 2024. The roundtable will explore opportunities to drive regional economic growth and build resilience in the F&B and agricultural sectors through enabling and enhancing the food supply chain and strengthening infrastructure. Learn more at https://lnkd.in/gM9qc7DJ #TransformingAgriculture

We are pleased to share that we have published our 2023 Annual Report “Strengthening Connections for a Sustainable Future” highlighting our financial and non-financial disclosures across three comprehensive components – Strategic Report, Governance Report and Financial Report. Some of the key updates and highlights include the Group’s growth plans, sustainability focus and how the Group plans to nurture its other businesses. Sunny Verghese, Co-Founder and Group CEO shares about Olam Group’s resilience despite the complex challenges and disruptions evident in the Group’s operational performance. Read Olam Group’s 2023 Annual Report here: https://lnkd.in/gsQqTjYw