Financial Performance

Olam Group’s diverse business portfolio has been re-organised into three distinct operating groups ofi (Olam Food Ingredients), Olam Agri and the Remaining Olam Group. The distribution of Olam Group’s businesses across the three operating groups is given below:

The segmentation of the operating groups for financial reporting is as follows:

EBIT, EBIT/IC as key financial metrics

Up until 2018/2019, we had reported our financial results with Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and EBITDA on Average Invested Capital (EBITDA/IC) for the Group as well as across business segments and value chain segments.

From 2020 onwards, we have been reporting financial results with Earnings Before Interest and Tax (EBIT) as a metric closer to the bottom line, and EBIT on Average Invested Capital (EBIT/IC) on a trailing 12 months basis for each operating group and its segments.

EBIT/IC provides greater visibility and a clear link between the growth in earnings (as reflected by the growth in EBIT), and the driver of those earnings (via the capital invested in the segments under each group). As the IC captures both the fixed and working capital directly attributed to the segments, EBIT/IC is a close proxy for Return on Invested Capital (ROIC).

Following the amendments to the Singapore Exchange Securities Trading Limited Listing Rules (Mainboard) which are effective from February 7, 2020, Olam will no longer be required to release its financial statements on a quarterly basis. It will now report its financial results half-yearly. The Company will continue to provide relevant disclosures of its strategy, operating and financial conditions as appropriate.