Tuesday 18 June 2024
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Olam reports FY revenue of US$34.90 billion up 31%, ofi at $10.8b up 18.8%

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SINGAPORE – Agri-Food giant Olam International International Limited reported earnings results for the full year ended December 31, 2021. For the full year, reported PATMI reached a record S$686.4 million S$686.43 million compared to SS$245.7 million a year ago, up 179.4%, on strong operating profit growth and lower exceptional losses as Re-organisation drives performance across Group. The company reported a strong EBIT growth: ofi was up 16.8%, Olam Agri 51.5%.

Operational PATMI (Profits After Tax & Minority Interests) grew 41.8% to $961.1 million, the highest since inception.

In H2 2021, the reported PATMI swung to positive S$264.9 million on improved operating profit and lower exceptional losses.

The Board of Directors declares second interim dividend of 4.5 cents per share for 2021; total dividend for 2021 will be 8.5 cents per share (2020: 7.5 cents)

1 Singapore Dollar (S$) = US$0.74

Olam Group Financial Performance

H2 2021

  • Revenue increased 29.0% year-on year (YoY).
  • EBIT grew 20.9% to S$781.0 million with both ofi and Olam Agri contributing to the growth.
  • PATMI swung to a positive S$264.9 million, while Operational PATMI was up 10.3%to S$524.5 million.

FY 2021

  • Revenue increased 31.2% to reach S$47.0 billion on higher prices across most products and commodities in 2021. Olam Agri contributed 66.5% of total Group revenue, ofi 31.1% and OIL 2.4% respectively.
  • EBIT rose by 33.0% to S$1.4 billion on strong growth at both ofi and Olam Agri. ofi contributed 61.5% of total Group EBIT, Olam Agri contributed 52.9%, and OIL -14.4%.
  • PATMI nearly tripled to S$686.4 million on strong operating profit growth and significantly lower exceptional losses compared to the year before.
  • Excluding non-recurring exceptional items, Group Operational PATMI grew by 41.8% to a new record of S$961.1 million in 2021.
  • FCFE was negative at S$1.0 billion, reflecting the investments in strategic acquisitions completed in 2021, including the Olde Thompson acquisition.
  • Net gearing remained unchanged at 1.72 times compared to a year ago.


A global leader at the forefront of food and beverage consumer trends, ofi delivers sustainable, natural, and plant-based ingredients and solutions and serves large, attractive and high growth end-use categories.

Consisting of the Cocoa, Coffee, Dairy, Nuts and Spices businesses, ofi is made up of two segments – Global Sourcing and Ingredients & Solutions.

  • Revenue increased 18.8% to S$14.6 billion, driven by growth from the Ingredients & Solutions segment.
  • EBIT grew strongly at 16.8% to S$875.3 million, demonstrating a strong recovery from the impact that Covid-19 had on some of its businesses in 2020, with both its segments performing well.

CEO of ofi, A. Shekhar said: “I am very proud of the strong growth and strategic progress we are delivering as we continue to accelerate our focus to provide natural and on-trend ingredients and solutions to our established and diverse customer base across the global food and beverages industry.

The strength and breadth of our sustainable ingredients portfolio and the determination of our people behind our purpose to ‘Be the Change for Good Food and a Healthy Future’ have been key drivers of our performance in 2021 and helped in our resilient recovery from the COVID-19 impact in 2020.

“2021 was an important year for ofi, and we made substantial investments in expanding the portfolio as well as in developing our talent pool and capabilities to support our future growth ambitions. We are excited by the opportunities and well positioned with a robust, resilient business model and a strong organization to navigate the ongoing market uncertainties and continue on our exciting growth journey.”

In 2020, Olam announced a reorganisation plan to split the group into three new operating groups — Olam Food Ingredients (OFI), Olam Agri (formerly known as Olam Global Agri) and Olam International via a carve-out, subsequent IPO and a concurrent demerger on a sequential basis.

This was done to simplify and focus its current diverse portfolio of businesses into three coherent operating groups that are more similar in nature, linked by an underlying logic and aligned to key consumer food and agri business trends respectively.

The company is now in the fourth step of execution, which entails OFI’s IPO and demerger as well as Olam Agri’s strategic options.

OFI is slated to list in the second quarter of 2022, with a concurrent primary listing in London and secondary listing in Singapore. OFI’s CEO A Shekhar said the company is “well prepared” for the IPO.

Sources familiar with the matter quoted by Reuters said in August last year that Olam was considering raising about 2 billion pounds ($2.7 billion) through the London listing, which would make it one of the biggest London IPOs in years.


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