Olam Group delivers 573% surge in H1 profit amid strong operational gains
ofi recorded double-digit EBIT growth of 12.7% year-on-year (YoY) to US$416.3 million.
SINGAPORE – Olam Group, a global powerhouse in food and agri-business with deep roots in grains, cereals, and related sectors, reported a robust profit after tax and minority interests (PATMI) of to S$323.8 million (US$253.05 million) for the first half of 2025, marking a staggering 573.2% increase year-on-year.
This performance, driven by improved operational efficiencies and strategic re-organization, underscores the company’s adaptability in a challenging global landscape marked by US tariffs, geopolitical tensions, and fluctuating commodity prices.
The group also declared an interim dividend of 2.0 Singapore cents per share, signaling confidence in its ongoing value-unlocking initiatives.
Operating profit (EBIT) rose 85.5% to S$708.7 million (US$550.9 million), while total EBIT, including Olam Agri’s discontinuing operations, increased 35.5% to S$1.2 billion (US$932.9 million).
Group revenue climbed 23.8% to S$33.3 billion (US$25.9 billion), driven by higher average selling prices for cocoa, coffee, rubber, and edible oils, alongside volume growth.
Co-founder and Group CEO Sunny Verghese emphasized that the stellar results stemmed from strong operational execution amid challenging conditions.
“We delivered strong PATMI growth on the back of operating profit growth in H1 2025 despite volatile and adverse macroeconomic and geopolitical conditions,” he said.
“We are encouraged by the steady progress achieved in executing our Updated 2025 Re-organisation Plan to unlock value for our shareholders. Pursuant to the proposed sale of Olam Agri to SALIC and the plan to responsibly divest the assets and businesses of the Remaining Olam Group, our focus is to prioritise ofi and support its efforts in realising its full potential value.”
Olam Food Ingredients (ofi) recorded a 52.5% rise in revenue to S$14.7 billion (US$11.4 billion) and 12.7% EBIT growth to S$535.8 million (US$416.3 million).
CEO of ofi, A. Shekhar, noted that the business navigated persistent supply risks, U.S. tariffs, and commodity price volatility.
“Against this backdrop, ofi’s integrated and diversified model once again proved its strength, enabling us to navigate the turbulence, support our suppliers, and deliver for our customers globally,” he said.
The Remaining Olam Group, encompassing palm oil, rubber, fertiliser, and technology ventures, swung to an EBIT of S$172.9 million (US$134.3 134.3million) from a loss in the prior year, supported by gains from its Continuing/Gestating Businesses and improved contributions from de-prioritised assets.
Olam Agri, now classified as discontinuing operations ahead of the sale of its remaining 64.57% stake to Saudi Agricultural & Livestock Investment Company (SALIC), saw revenue rise 7.9% to S$18.1 billion (US$14.1 billion), though EBIT slipped 2.3% to S$494.4 million (US$ 384 million) due to weaker origination, merchandising, and cotton results.
CFO N. Muthukumar highlighted that tighter capital controls and selective investments bolstered performance.
“Even as input prices of cocoa and coffee eased from their peaks, we continued to improve our working capital efficiency, translating into significantly better net operating cash flow,” he said.
“Our capital expenditure was fairly steady in the first half of 2025 as we remained disciplined and selective in our investments, prioritising margin-accretive investments and optimising working capital use.”
Looking ahead, the Group warned that U.S. trade tariffs, geopolitical instability, and continued commodity price swings could weigh on global growth. Nonetheless, it reaffirmed its strategic focus. ofi maintained its medium-term guidance of low- to mid-single digit total volume growth and high single-digit adjusted EBIT growth, while Olam Agri expects another steady year despite market challenges.
“Our aim is to responsibly divest and monetise all of the Remaining Olam Group’s assets over time and progressively distribute the net proceeds to shareholders via special dividends,” Verghese said.
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