Olam Group H1 profit jumps to S$1.9 billion on divestments

Olam Group reported a 488.8 per cent increase in net profit for the first half of the year ending June 30, reaching S$1.9 billion. This surge was primarily driven by approximately S$1.8 billion in one-off gains from the divestment of its 44.58 per cent stake in agribusiness unit Olam Agri and its entire IT and digital services unit, Mindsprint.

The group also recognized an accounting gain from the valuation of its remaining stake in Olam Agri. This follows the completion of regulatory approvals across 21 jurisdictions for the US$1.8 billion sale of the Olam Agri stake to a Saudi fund.

Despite the profit jump, net profit from continuing operations and the food ingredients arm, ofi, fell 66 per cent to S$55.6 million. Total revenue decreased 18.3 per cent to S$12.5 billion, which the company attributed to lower input prices for cocoa and coffee, alongside lower volumes in the remaining Olam Group.