Singapore · Delayed Price · Currency is SGD Olam Group Earnings Call Transcripts
Fiscal Year 2025
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PATMI surged 414% and operating earnings rose 162% year-over-year, driven by strong segment performance and successful restructuring. Olam Agri’s sale to SALIC nears completion, RemainCo turned profitable, and ofi expects EBIT per ton growth from recent investments.
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H1 2025 saw strong revenue and EBIT growth, improved cash flow, and a major shift in reporting due to the Olam Agri sale. OFI delivered robust margin gains, while Olam Agri and Remaining Olam Group faced mixed results amid volatile markets. Uncertainty persists for H2 2025.
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The group will inject $500 million into OFI, make the remaining business debt-free, and divest assets to return capital to shareholders. OFI's IPO timing depends on market conditions, with a dual listing planned. Tariff impacts are mitigated by global sourcing and will largely be passed to consumers.
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A two-tranche sale of the remaining 64.57% stake in Olam Agri to SALIC will fully divest the business, raising $3.87 billion at a $4 billion valuation—a premium to prior deals and market cap. The transaction secures value, maintains management continuity, and positions Olam Agri for future growth and a potential IPO, with proceeds to be allocated for debt, growth, and possible dividends.
Fiscal Year 2024
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Group achieved record volumes and revenue, with EBIT up 9% year-over-year. OFI delivered strong EBIT growth despite unprecedented commodity volatility, while Olam Agri outperformed peers in a tough industry downturn. Adjusted gearing remained stable amid higher working capital needs.
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Revenue and EBIT grew year-on-year, led by OFI's strong performance, while Olam Agri saw a modest decline. Elevated commodity prices increased working capital and gearing, but liquidity remains robust. IPO plans for OFI and Olam Agri are progressing, with challenging market conditions expected to persist.