SINGAPORE – Olam Agri, a global leader in food and agriculture, has outlined that it will continue to execute its strategy of scaling up its global origination and trading operations while investing in value-added destination processing across Africa and Asia.
The global agribusiness company is also banking on the Strategic Supply and Cooperation agreement with SALIC to catalyse its growth.
Meanwhile, Olam Group, during the release of the first half financial results, said it’s still committed to list ofi and Olam Agri, while concurrently exploring other strategic options to unlock value.
The group will consider both internal and external factors, such as business performance of all three operating groups, prevailing capital markets conditions and global macroeconomic developments as well as receiving all necessary regulatory approvals.
In the H1 results, the company said the group’s revenue grew 9.1% to S$26.9 billion (US$20.57B) mainly on higher sales volumes.
Revenue increased by 24.9% to S$9.6 billion (US$7.34B) driven by volume growth in the Ingredients & Solutions segment and higher average selling prices across both segments.
EBIT grew 71.5% YoY to S$475.5 million on the back of a strong performance in the Ingredients & Solutions segment, which further reinforced the benefits of an integrated business model, a well-diversified portfolio, differentiated supply chain strengths and balance sheet flexibility to its customers.
Sunny Verghese, CEO of Olam Agri, said: “Despite lower operational growth, Olam Agri continues to deliver EBIT margin per metric tonne that is at the higher end of the historical range during 2021-2023. The Food & Feed – Processing & Value-Added segment has delivered a steady performance even against an exceptional H1 2023.
“Our recent partnership with SALIC will help us scale our global origination and trading operations, as we increase our investments in value-added destination processing across Africa and Asia to deliver superior growth and returns.”
Revenue for ofi increased by 24.9% to S$9.6 billion driven by volume growth in the Ingredients & Solutions segment and higher average selling prices across both segments.
Meanwhile, Olam Agri generated a revenue increase of 2.7% to S$16.7 billion, as sales volume growth was offset by lower commodity and selling prices compared to H1 2023.
For the full year outlook, the Group expects operating conditions to continue being affected by various geopolitical and macroeconomic factors. However, it also expects to see inflationary pressures softening.
For ofi, it expects markets to remain volatile and challenging in the near term, particularly for some raw materials like cocoa and coffee.
The Remaining Olam Group businesses continue to tap the growing market opportunities for digital and sustainability solutions to transform the food and agri-business sector.
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