Olam Group PATMI down 8.3% YoY to $629.1m in 2022

Its PATMI for H2 FY2022 declines by 24.5% YoY to $200m.

Olam Group saw its profit after tax and minority interest (PATMI) decline by 8.3% year-on-year (YoY) in 2022 to $629.1m as its earnings before interest and tax (EBIT) was offset by higher net finance costs and taxes.

In a statement, Olam Group said its EBIT rose 13.1% YoY to $1.6b mainly due to contribution by Olam Agri which accounted for 53.3% of the total, whilst ofi and the remaining Olam Group comprised 46.4%, and 0.3%, respectively.

The company’s revenue also rose by 16.8% YoY to $54.9b due to the higher prices of products and commodities. Its operational PATMI, meanwhile, was down by 18.7% to $781.5m. 

“The Olam Group is now at the cusp of transformational growth as all three operating groups have been repositioned to tap into the growing demand in their respective sectors. In the year ahead, we expect both Olam Agri and ofi to continue their growth momentum, capitalising on industry trends, the reopening of economies and the easing of supply chain disruptions,” said Co-Founder and CEO Sunny Verghese. 

“As we prepare Olam Agri for its proposed dual-listing in Singapore and Saudi Arabia, we are also progressing with the rest of our Re-organisation Plan – the listing of ofi in London and Singapore, as well as developing new growth engines and reshaping our assets within the Remaining Group to focus on the future of sustainability and digitalisation to offer its own value proposition for investors and stakeholders,” Verghese added. 

For the second half of the financial year, the company’s revenue increased by 9.5% YoY, and its EBIT by 2.2% to $798.2m. However, its PATMI was down by 24.5% YoY to $200m with the doubling of the net finance costs. Its operational PATMI, excluding exceptional items, also declined by 42.2% to $303m.