Press Release

Changes to the presentation of H1 2025 Group financial highlights

Given the conditional 100% sale of Olam Agri to SALIC was approved by shareholders of the Company on July 4, 2025, Olam Agri, excluding entities to be retained by Olam Group (“Retained Entities”), is classified as a disposal group with assets and liabilities held for sale and defined as “Olam Agri (Discontinuing Operations)” in the Group’s H1 2025 results. The results of Retained Entities are included under the Remaining Olam Group’s Continuing/Gestating Businesses within the Group’s consolidated results.

The Group therefore presents the full results for ofi and Remaining Olam Group as “continuing operations” and consolidates only the profit/(loss) of Olam Agri (Discontinuing Operations) in its aggregate Group profit/(loss). This approach will be adopted until the sale of the 44.58% stake in Olam Agri is completed. Results for the prior corresponding half-year (“H1 2024”) have been re-presented in a similar manner:

Table 1: H1 2025 Reported and H1 2024 Re-Presented

In addition, results for H1 2025 have been adjusted to include Olam Agri (Discontinuing Operations) and compared with H1 2024 Reported performance:

Table 2: H1 2025 (Including Olam Agri (Discontinuing Operations) and H1 2024 Reported (for comparison only)

Management Comments on Consolidated Olam Group Performance

Olam Group Co-Founder and CEO, Sunny Verghese, said: “We delivered strong PATMI growth on the back of operating profit growth in H1 2025 despite volatile and adverse macroeconomic and geopolitical conditions.

“We are encouraged by the steady progress achieved in executing our Updated 2025 Re-organisation Plan to unlock value for our shareholders. Pursuant to the proposed sale of Olam Agri to SALIC and the plan to responsibly divest the assets and businesses of the Remaining Olam Group, our focus is to prioritise ofi and support its efforts in realising its full potential value.”

Olam Group CFO, N Muthukumar, said: “Even as input prices of cocoa and coffee eased from their peaks, we continued to improve our working capital efficiency, translating into significantly better net operating cash flow. Our capital expenditure was fairly steady in the first half of 2025 as we remained disciplined and selective in our investments, prioritising margin-accretive investments and optimising working capital use.”

Olam Group H1 2025 Financial Performance (Table 2)

• Revenue grew 23.8% to S$33.3 billion mainly on higher average sales prices due to increased input prices, namely cocoa and coffee in ofi and volume growth coupled with price increases in rubber and edible oils in Olam Agri.

• EBIT up 35.5% to S$1.2 billion, driven mainly by a positive swing in EBIT from the Remaining Olam Group and double-digit EBIT growth in ofi.

• PATMI, which includes discontinuing operations in Olam Agri, grew on improved operating performance by ofi and the Remaining Olam Group and marginally higher PATMI from discontinuing operations.

• Excluding one-off items, core PATMI or Operational PATMI grew to S$327.1 million on improved performance by ofi and the Remaining Olam Group.

• Free Cash Flow to Equity (FCFE) was much improved at negative S$945.3 million (H1 2024: -S$5.4 billion) due to substantially lower working capital deployment.

• Net gearing increased slightly to 2.83 times (H1 2024: 2.60 times) due to higher working capital, leading to an increase in borrowings.

• To-date, ofi secured total loan facilities amounting to US$2.45 billion, while Olam Agri secured total loan facilities totalling US$3.85 billion for refinancing of their existing loans and for general corporate purposes.

H1 2025 Performance by Operating Group

ofi²

• Revenue rose 52.5% to S$14.7 billion, due to higher average sales prices as compared to H1 2024.

• EBIT grew 12.7% to S$535.8 million led by the Global Sourcing segment which successfully passed through costs associated with the higher risk and capital deployment.

CEO of ofi, A. Shekhar said:  “The first half of 2025 continued to remain challenging, with persistent supply risks, geopolitical uncertainty, US tariffs and sustained volatility in key commodity markets such as cocoa and coffee. Against this backdrop, ofi’s integrated and diversified model once again proved its strength – enabling us to navigate the turbulence, support our suppliers, and deliver for our customers globally.

“We remained focused on optimising risk-adjusted returns in an environment of elevated working capital and price volatility. Our disciplined execution and strategic prioritisation of value-accretive opportunities helped us deliver strong double-digit EBIT growth, led by our Global Sourcing segment.

“At the same time, our Ingredients & Solutions segment continued to grow volumes, reinforcing our long-term strategy to become a more customer-centric, solutions-led business. We are pleased with the progress made and the resilience shown across our platforms.

“While we expect continued volatility in the near term, we remain confident in our ability to adapt, create value for our stakeholders, and deliver on our medium-term guidance of high single-digit adjusted EBIT growth.”
 

Remaining Olam Group³

• Revenue growth of 4.9% contributed by growth from the Continuing/Gestating Businesses and Incubating Businesses.

• Continuing/Gestating Businesses led the improvement in EBIT, along with improved contribution from the De-prioritised/Exiting Assets.

Olam Agri (Discontinuing Operations)⁴

• Revenue rose 7.9% to S$18.1 billion, underpinned by higher grains, oilseeds and edible oils volumes despite more uncertain and volatile commodity markets arising from the US trade tariffs, Russia-Ukraine as well as the Middle East conflicts.

• EBIT was marginally lower at S$494.4 million as strong growth in the Food & Feed - Processing & Value-Added segment was offset by lower contribution from the Food & Feed - Origination & Merchandising segment and the cotton business.

Outlook and Prospects

The Group expects the global economic outlook for 2025 to be clouded by the ongoing trade tensions as a result of US tariffs and potential retaliatory response by its trading partners, which have led to uncertain global economic growth forecasts compared with the previous year. The world economy is also expected to experience elevated market uncertainties due to the volatile geopolitical conditions and macroeconomic conditions, such as impacts from the Middle East conflicts, the prolonged Ukraine-Russia war and potential inflationary effects arising from tariffs and international trade and supply chain disruptions.

ofi expects continued near-term volatility for some of its input raw materials like cocoa and coffee. It will focus on balancing and optimising between risk, return, and cash flow to navigate through the current market volatility, while aiming to protect risk-adjusted margins and returns. ofi maintains its existing guidance for low- to mid-single digit total volume growth and high single-digit adjusted EBIT growth over the medium-term.

The Group seeks to responsibly divest the businesses of the Remaining Olam Group to unlock and realise value for shareholders. It expects profits of the Remaining Olam Group to normalise in the second half-year with constituent businesses to continue delivering steady operational performance.

Olam Agri (Discontinuing Operations) expects another steady year in 2025 despite the US tariffs and geopolitical situation.

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¹ Please refer to the Olam Group Limited’s SGXNET announcement dated August 14, 2025 for full details.

² Consisting of the Cocoa, Coffee, Dairy, Nuts and Spices businesses and the new food and beverages platform, ofi is made up of two segments – Global Sourcing and Ingredients & Solutions.

³ Comprises Olam Palm Gabon, Rusmolco, Caraway, ARISE P&L, Mantra, Gabon Fertiliser Project) and Mindsprint as Continuing/Gestating Business, Olam Rubber Gabon as De-prioritised/Exiting Assets, and Nupo Ventures as Incubating Businesses.

⁴ Consisting of Grains & Oilseeds, Freight, Wheat Milling & Pasta, Integrated Feed & Protein, Edible Oils, Rice, Specialty Grains & Seeds, Cotton, Rubber, Wood Products, Bioenergy & Sugar and Commodity Financial Services. Olam Agri has three segments – Food & Feed - Origination & Merchandising; Food & Feed - Processing & Value-added; and Fibre, Agri-industrials & Ag Services.

Notes to Editors

This release should be read and understood only in conjunction with the full text of Olam Group Limited’s Financial Statements, Management Discussion and Analysis and presentation for the Half Year ended June 30, 2025. A live webcast of the results briefing will be available at 10.30 am SGT on August 14, 2025 with replay at olamgroup.com.