Olam Group posts 414% surge in 2025 PATMI on strong operational recovery
Olam Agri’s performance, despite being reported as discontinuing operations ahead of its planned full divestment, remained robust with revenue increasing 12.7%.
SINGAPORE – Olam Group Limited has reported a marked improvement in full-year financial results for 2025, posting a Profit After Tax and Minority Interests (PATMI) of S$444.1 million (US$326 million), up 414% from the prior year.
According to Olam, the performance reflects a recovery across core businesses, disciplined capital allocation and progress on the group’s re-organisation plan.
The Group’s operational PATMI, excluding exceptional items, reached S$510.9 million (US$375 million) in 2025, a 136.2% increase over 2024.
On a reported basis, earnings before interest and tax (EBIT) from continuing operations rose 37.9% to S$1.3 billion (US$957 million).
When including contributions from Olam Agri, classified as discontinuing operations, groupwide EBIT increased 13.2% to S$2.2 billion (US$1.62 billion).
Revenue growth in 2025 was driven by higher sales volumes and pricing dynamics, particularly in global commodity markets.
Group revenue increased 19.3% to S$67.0 billion (US$49.4 billion) on larger volume deliveries and pass-through of elevated input costs in key commodities such as coffee, cocoa and edible oils.
Olam Group’s CEO Sunny Verghese stated that the 2025 performance, under challenging market conditions, reflected operational discipline and progress on strategic priorities.
He noted that the group remained focused on unlocking value in ofi and the Remaining Olam Group, with further divestments anticipated.
The proposed sale of Olam Agri remains on track, and the group’s portfolio optimisation efforts are expected to enhance future earnings and cash-flow resilience.
Group CFO N. Muthukumar highlighted improvements in working capital driven by cocoa price normalisation, which strengthened operating cash flow.
Capital expenditure was managed selectively, prioritising investments with strong strategic returns.
Segment performance
Across Olam’s major operating segments, Olam Food Ingredients (ofi) delivered a resilient performance with an unchanged EBIT of S$1.1 billion (US$810 million) year-on-year, underscoring stability amid market volatility in cocoa and coffee markets.
“In one of the most volatile commodity markets and uncertain trade environments in recent memory, ofi delivered a resilient and disciplined performance. Despite significant swings in commodity markets, our teams around the world stayed focused on serving customers, supporting farmers and suppliers, and executing on our long‑term strategy,” said A. Shekhar, CEO of ofi.
The Remaining Olam Group, which comprises assets outside of ofi and Olam Agri, swung to profitability with an EBIT of S$197.7 million (US$146 million), a positive margin shift of S$349.2 million from the prior period.
This improvement was supported by better operational results in underlying businesses and significant non-cash foreign exchange gains on Euro-denominated loans.
Olam Agri’s performance, despite being reported as discontinuing operations ahead of its planned full divestment, remained robust with revenue increasing 12.7%.
However, EBIT declined 9.2% to S$923.5 million (US$681 million) due to softer commodity pricing and volatility affecting grains, edible oils and rice trading businesses.
Strategic re-organisation progress
Central to the 2025 results was execution of the group’s Updated 2025 Re-organisation Plan, which aims to sharpen focus on high-growth platforms and unlock shareholder value.
Approvals for the sale of a 44.58% stake in Olam Agri to Saudi Agricultural & Livestock Investment Company (SALIC) have been obtained from all but one jurisdiction, with regulatory and lender clearances progressing toward completion.
Under the revised classification approach, Olam Agri has been treated as a disposal group, with its results consolidated on a limited basis until the transaction concludes.
“Olam Agri sustained growth momentum despite low prices and low volatility. We are also very pleased with the progress made towards completing the sale of Olam Group’s remaining stake in Olam Agri across two tranches,” said Verghese
“We remain confident in the long-term fundamentals of the sector, our differentiated business model and our strong growth prospects with the support of our new and eventually 100% shareholder of Olam Agri,” he added.
The group advanced capital allocation actions during the year, including a US$500 million equity infusion into ofi to support future growth, and the repurchase of approximately 22.2 million shares, equating to S$20.7 million (US$15 million).
Olam also closed non-core assets such as Jiva Ag and agreed to divest Terrascope to XeleratedFifty1 as part of portfolio refinement.
Free cash flow to equity (FCFE) returned to positive territory at S$359.6 million (US$265 million), reversing a large negative position of S$5.9 billion in 2024.
Net gearing eased moderately to 2.69 times at year-end, while adjusted net gearing, net of readily marketable inventories and secured receivables, improved to 0.58 times.
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