Olam H2 earnings jump 213.4% as continuing operations improve; final dividend withheld amid restructuring
The group has obtained approvals from all jurisdictions – save for one – for the sale of its 44.58% stake in Olam Agri
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[SINGAPORE] Olam Group on Friday (Feb 27) posted a 213.4 per cent jump in net profit to S$120.3 million for its second half ended Dec 31, 2025, up from S$38.4 million a year earlier.
This came as losses from the group’s continuing operations narrowed to S$7.1 million, from S$130.4 million in H2 in its 2024 financial year.
Group revenue came in at S$33.7 billion, up 15.2 per cent year on year (yoy). This, Olam Group said, was driven by “strong volume and revenue growth in Olam Agri”.
Earnings per share stood at S$0.0278, up from S$0.0058 in H2 FY2024.
No final dividend was recommended for FY2025, versus a final dividend of S$0.03 per share a year earlier. An interim dividend of S$0.02 per share was paid out in August 2025.
“In view of the ongoing execution of the updated reorganisation plan and pending completion of the sale of Olam Agri to Salic (Saudi Agricultural and Livestock Investment Company), the board deems it prudent to conserve cash at this time to ensure operational resilience,” the group explained.
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For FY2025, Olam Group’s net profit surged 419.3 per cent to S$444.1 million, from S$86.4 million the year before. Revenue, meanwhile, was up 19.3 per cent yoy at S$67 billion.
Top-line growth during the year was driven by the “pass-through of increased input prices”, particularly for cocoa, coffee and edible oils, the group said.
What’s next?
Olam Group has obtained approvals from all jurisdictions – save for one – for the sale of its 44.58 per cent stake in Olam Agri to the Saudis. The deal was first announced in February 2025.
The agribusiness hopes to obtain the final jurisdiction’s approval by the end of March, said co-founder and chief executive officer Sunny Verghese at an earnings briefing on Friday.
Separately, Verghese added that Olam Group expects the “completion and receipt of proceeds” from the sale of its remaining 32.4 per cent stake in port operator Arise P&L “sometime towards the end of April”.
The divestment of Arise P&L is part of the group’s multi-year restructuring plan to “unlock shareholder value” through the divestment and monetisation of all of its remaining assets.
The group said it intends to progressively distribute net proceeds to shareholders through special dividends.
Olam Group sold or wound down three businesses under the remaining group in FY2025, leaving it with seven.
“The primary objective (for the remaining Olam Group) is to continue to look for the right long-term owners of (its) seven businesses, while concurrently ensuring that these businesses continue to improve operational performance,” said Verghese.
Olam Group further shared that its food ingredients unit, ofi, is exploring a concurrent listing in Europe and in Singapore “at an appropriate time, and/or (a) private sale”.
Shekhar Anantharaman, executive director and chief executive officer of ofi, said the company was “holding up well for an initial public offering, but remains prepared for all alternatives in the company”.
Verghese remarked: “The macro climate condition is something in which you have to be nimble, agile (and) flexible, and have the ability to react very quickly. That will determine how Olam will perform, especially in 2026.”
Shares of Olam Group closed 7.6 per cent or S$0.075 lower at S$0.915 on Friday, after the announcement.
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