Olam reports record Operational PATMI1 for H1; Re-organisation progresses with OFI listing venues decided. Strong growth momentum from new Operating Groups.
- H1 2021 Operational PATMI increased 116.0% to $436.6 million, its highest since inception
- Reported PATMI for H1 2021 up 26.7%, despite a high base a year ago from exceptional gains
- Strong EBIT growth
- Olam Food Ingredients (OFI): EBIT up 22.9%
- Olam Global Agri (OGA): EBIT up 58.9%
- Board of Directors declares an interim dividend of 4.0 cents per share (H1 2020: 3.5 cents)
Continued progress on Re-organisation Plan
- OFI is seeking a primary listing on the premium segment of the London Stock Exchange with concurrent listing on the Singapore Exchange; the IPO and concurrent demerger of OFI remains on course for H1 2022
- OGA is evaluating various strategies to maximise its long-term growth potential and value enhancement within the Group, including a potential IPO and concurrent demerger from the Group in H1 2023
H1 2021 Financial Highlights
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Olam Co-Founder and Group CEO, Sunny Verghese said:
““Our strongest operational earnings since inception reflect the underlying strength and resilience of our businesses despite the impacts of Covid-19 and is a testament to the strength of our business model, the commitment of our people and depth of our customer and supplier partnerships across more than 60 countries.
“We continue to execute our Re-organisation with OFI’s planned concurrent listings in London and Singapore, representing the best combination of listing venues. We are excited about the prospects of listing OFI as an attractive play for the growing demand for natural, plant-based ingredients and value-added solutions, which are sustainably sourced and traceable.
Separately, we are evaluating various strategies to maximise OGA’s long-term growth potential and value enhancement within the Group as it continues with its plan for carve-out, potential IPO and demerger by H1 2023.
“Looking forward, we expect our industry to continue its recovery in the second half of the year, benefiting from the tailwind of favourable macro conditions following the snapback from the worst impacts of Covid-19.
Notwithstanding the differential impact of Covid-19 globally, Olam continues to play an important role in providing essential food staples, food ingredients, feed and fibre to customers around the world in a safe, responsible and sustainable way.”
Olam Group Financial Performance
- Global food and agri-business, Olam Group, today reported its strongest H1 Operational PATMI since inception as it moved forward with its Re-organisation Plan, announced in January 2020.
- Revenue increased 33.7% year-on-year (YoY), reflecting strong growth from both OGA and OFI. OGA contributed 67.8% of total Group revenue, OFI 29.8%, and OIL 2.4% respectively.
- PATMI grew 26.7% on robust operating profit and lower net finance costs in H1 2021, even against a high base in H1 2020 that had net exceptional gains of S$130.6 million.