Olam International (VC2) H2 2025 earnings summary

Executive summary

• Group revenue rose 19% year-over-year to $67 billion, with EBIT up 13% to $2.2 billion and PATMI up 136% to $511 million, driven by strong commodity prices, operational improvements, and lower net finance costs.

• Olam Agri's EBIT declined 9.2% amid industry-wide profit drops, but volumes grew 19% to 53.5 million tons, offsetting margin compression.

• The Remaining Olam Group swung from a $152 million loss to a $198 million profit, aided by operational gains and non-operational currency revaluation.

• The group advanced its reorganization, selling a majority stake in Olam Agri to SALIC and divesting non-core assets, with plans to make the RemainCo debt-free.

• Sale of 64.57% stake in Olam Agri to SALIC approved, with Tranche 1 completion pending regulatory approval.

Financial highlights

• Revenue excluding Olam Agri reached $30 billion, up 29% year-over-year, with EBIT at $1.26 billion and PATMI at $444 million.

• Operational PATMI surged 136% to $511 million, and Free Cash Flow to Equity swung to +$360 million from a prior deficit, reflecting normalized commodity prices and reduced working capital.

• Gearing (net debt/equity) dropped from 2.79x to 1.87x excluding Olam Agri, and to 2.69x including Olam Agri.

• Liquidity remains strong with $15.5 billion available, including $2.2 billion cash and $4 billion in unutilized bank lines.

• Invested capital decreased 4.0% YoY to S$25.5B.

Outlook and guidance

• Management expects continued improvement in ofi and Olam Agri performance, with 2026 seen as an inflection point for all three operating entities.

• Special dividends will be paid progressively as non-core assets are divested; regular dividends depend on operating performance and capital needs.

• Market outlook for cocoa and coffee points to surplus conditions, with price corrections expected to continue.

• ofi maintains guidance for low- to mid-single digit volume growth and high single-digit adjusted EBIT growth medium-term.

• Olam Agri to be treated as an associate from H1 2026, with earnings equity accounted.