Olam posts all-time high operational PATMI 41.8% increase to $961.1m

Thanks to the group's reorganisation.

Olam reported a banner year for 2021 as it saw a 41.8% year-on-year (YoY) growth in its operational profit after taxation and minority interests (PATMI) to $961.1m for 2021, the highest since its inception. 

Its overall PATMI for the same period went up by 179.4% YoY to $686.4m. This was mainly due to strong operating profit growth and lower exception losses. Meanwhile, net gearing was unchanged at 1.72 times when compared to a year ago. 

For the second half of 2021, the group reported the same sentiments with PATMI reaching a positive increase to $264.9m due to an improvement in operating profit and lower exceptional losses. Both the earnings before interest and taxes and operating PATMI metrics also showed increases at 20.9% YoY to $781m and 10.3% YoY to $524.5m, respectively.

Due to these results, a second interim dividend of 4.5 cents per share for 2021 was announced by the Board of Directors, bringing the total dividend for 2021 to 9.5 cents per share. 

“This reflects the continued strength and differentiation of our business model. The benefits of focus through the re-organisation exercise has yielded strong growth momentum for both ofi and Olam Agri, and they are now well poised for their next phase of growth,” commented Sunny Verghese, Olam co-founder, Group CEO.

Progress in the group’s re-orgnisation plan was also included in the report, as shareholders approved the Scheme of Arrangement taking place in 15 March 2022. Q2 2022 will also see Olam Food Ingredients have a primary listing in London, as well a secondary listing in Singapore. 

On the other hand, strategic options are also being looked at to maximise the value of Olam Agri, such as potential IPOs and demergers.