Singapore · Delayed Price · Currency is SGD Olam Group Earnings Call Transcripts
Fiscal Year 2025
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Revenue rose 19% to $67B with EBIT up 13% and PATMI up 136%, driven by strong commodity prices and operational gains. Olam Agri outperformed peers despite a 9.2% EBIT drop, while the Remaining Olam Group swung to profit. The group advanced its reorganization and deleveraging.
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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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Sales volume and revenue grew strongly year-over-year, with EBIT up 8.3% and OFI delivering a 71.5% EBIT increase. Elevated commodity prices drove higher working capital and gearing, but liquidity remains robust. Outlook remains cautious amid geopolitical and macroeconomic risks.