Olam International (VC2) H1 2025 earnings summary

Executive summary

• PATMI surged 573.2% year-over-year to S$323.8 million for H1 2025, driven by strong EBIT growth in ofi and improved performance in Remaining Olam Group, with Olam Agri (Discontinuing Operations) showing marginal growth.

• Interim dividend of 2.0 cents per share declared, down from 3.0 cents in the prior year.

• Sale of Olam Agri to SALIC marks a major milestone in the re-organisation plan, unlocking significant value for shareholders.

• Net profit for the six months ended 30 June 2025 surged to S$345.98 million, up 574% year-over-year, with total comprehensive income impacted by foreign currency translation losses.

Financial highlights

• Revenue grew 23.8% year-over-year to S$33.3 billion, with volume up 14.5% to 27.8M MT and higher sales prices.

• EBIT (excluding Olam Agri) rose 85.5% to S$708.7 million; including Olam Agri, EBIT increased 35.5% to S$1.2 billion.

• Operational PATMI reached S$327.1 million, up 345.0% year-over-year.

• Free cash flow to equity improved by S$4.4 billion, from -S$5.5 billion to just under -S$1 billion.

• Net gearing increased to 2.83 times from 2.60 times year-over-year due to higher working capital.

Outlook and guidance

• Global economic outlook for 2025 remains uncertain due to US tariffs, geopolitical tensions, and volatile macroeconomic conditions.

• ofi expects near-term volatility in cocoa and coffee but maintains guidance for low- to mid-single digit volume growth and high single-digit adjusted EBIT growth over the medium term.

• Remaining Olam Group profits expected to normalise in H2 2025, with steady operational performance.

• Olam Agri anticipates another steady year despite ongoing tariffs and geopolitical uncertainty.