Olam International (VC2) H2 2025 earnings summary

Executive summary

• PATMI grew 414% year-over-year to S$444.1M, with operational PATMI up 136.2%, driven by EBIT growth, lower finance costs, and robust segment performance.

• Revenue rose 28.8% to S$29.6B (reported), with adjusted revenue up 19% to S$67B, and operating earnings increased 162%.

• The group advanced its restructuring, selling a 64.57% stake in Olam Agri to SALIC (pending final regulatory approval), divesting non-core assets, and injecting US$500M into ofi.

• RemainCo swung from a $152M loss in 2024 to a $198M operating profit in 2025, with a focus on deleveraging and supporting ofi and Olam Agri.

• Reorganisation included closure of Jiva, sale of Terrascope, and share buybacks totaling 22.2M shares for S$20.7M.

Financial highlights

• EBIT increased 37.9% to S$1,267.2M (reported), adjusted EBIT up 13.2% to S$2.2B; EBITDA rose 24% to S$1.8B (reported), adjusted EBITDA up 9.9% to S$2.96B.

• Free cash flow to equity improved by S$6.3B to S$360M; liquidity stood at S$15.5B with S$7.6B in headroom.

• Net gearing reduced from 2.79x to 1.87x (reported), and adjusted net debt to equity dropped to 0.55x.

• Invested capital decreased 4% to S$25.5B.

• PATMI margin improved significantly on EBIT growth and lower finance costs.

Outlook and guidance

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

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

• Special dividends will be paid as asset divestments are completed; normal dividends depend on operating performance.

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

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