Olam H1 profit up 1.8% to S$429.1m; declares S$0.04 interim dividend

OLAM Group on Friday (Aug 12) reported a net profit of S$429.1 million for the first half of the fiscal year ended June 2022, up a marginal 1.8 per cent from S$421.5 million in H1 2021 as higher finance costs partly offset strong Ebit (earnings before interest and tax) growth for the period.

Revenue for H1 2022 rose 24.6 per cent on year to S$28.4 billion from S$22.8 billion the previous year, as the group recorded higher prices across several of its products and commodities.

Finance costs, however, expanded 36.7 per cent to S$327.3 million from S$239.4 million previously. Olam attributed this to a high interest rate environment, taxes and higher one-off exceptional charges related to its recent re-organisation.

Excluding exceptional items, operational profit after tax and non-controlling interest (Patmi) was S$472.5 million, up 8.2 per cent from the previous year.
Olam's board has declared an interim dividend of 4 Singapore cents per share, unchanged from a year ago.

The group believes it is "well-positioned for 2022 as the revised sales pricing and margin recovery gathers pace in H2 2022" and expects to deliver a better year-on-year performance for the full year.

It further anticipates additional one-off and non-recurring expenses associated with its re-organisation plan in H2, although these expenses for the full year are expected to be lower than the total recorded for 2021.

The group said it remains cautiously optimistic about its prospects for the rest of the year, even as the industry continues to see strong underlying demand amid tight supplies.

Shares of Olam closed flat at S$1.57 on Thursday.

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