Olam International (VC2) H2 2025 earnings summary

Executive summary

• PATMI surged 414% year-over-year to S$444.1 million, with operational PATMI up 136.2% to S$510.9 million, driven by EBIT growth and lower net finance costs.

• Group revenue rose 19.3% year-over-year to S$67.0 billion, with EBIT up 13.2% to S$2.2 billion and strong operational gains in ofi and Remaining Olam Group.

• 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, divesting non-core assets, and injecting US$500 million into ofi.

Financial highlights

• Revenue excluding Olam Agri reached S$29.6 billion, up 28.8% year-over-year, with EBIT at S$1.26 billion and PATMI at S$444.1 million.

• Free Cash Flow to Equity improved to S$359.6 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; adjusted net gearing at 0.58x.

• Liquidity remains strong with S$15.6 billion available, including S$2.2 billion cash and S$4 billion in unutilized bank lines.

• Invested capital decreased 4.0% year-over-year to S$25.5 billion.

Outlook and guidance

• Management expects continued market volatility in 2026 due to unpredictable trade policies and geopolitical tensions.

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

• Remaining Olam Group to focus on steady operational performance and selective internal funding for profitable growth.

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

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