Coffee business may leave Olam with bitter taste in 1H 2019
Some factors: supply glut keeping prices of beans low, political risks in largest producer Brazil and bad weather
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AGRI and food giant Olam International whose business is exposed to the vagaries of weather patterns and cyclical crops expects the coffee business that was part culprit for its just-released weak 2018 earnings to remain under stress in the first half of the year.
"We expect margins in the coffee business to be under pressure over this period given the continued headwinds," said Olam chief executive and co-founder Sunny Verghese at a results briefing on Thursday when asked about the most significant risks over the next six to 12 months.
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