Olam reports resilient performance in H1 2020, with 44.4% growth in PATMI amid Covid-19

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Olam reports resilient performance in H1 2020, with 44.4% growth in PATMI amid Covid-19

Press release 13th Aug, 2020

Singapore

  • Reports against new operating groups1 (OFI, OGA & OIL) for the first time
  • Strong execution of Strategic Plan (2019-24) and on track to deliver Re-organisation Plan (announced in January 2020)
  • Sharp focus on safety of our teams, maintaining business continuity, serving our customers reliably and helping our communities
  • Board of Directors declares interim dividend of 3.5 cents per share, unchanged from H1 2019.
Revenue
+ 7.1% YoY

xxx
17.1
Bn (S$) 
 
EBIT
- 18.8% YoY

xxx
423.7 
Mn (S$) 
 
PATMI
+ 44.4% YoY

xxx
332.7 
Mn (S$) 
 
Op PATMI
- 18.5% YoY

xxx
202.1 
Mn (S$) 
 
FCFE
 

xxx
826.9 
Mn (S$) 
 
Gearing
 

xxx
1.29
times

 

Management Comments on Consolidated Olam Group Performance and Outlook

Olam Co-Founder and Group CEO, Sunny Verghese said:  Following the Covid-19 pandemic, we are focused on delivering three key priorities in 2020: i) successfully navigate through the Covid-19 pandemic and emerge stronger; ii) execute our Strategic Plan (2019-24) and deliver our strategic and financial goals for 2020 and beyond; and iii) deliver on our Re-organisation Plan that we announced in January this year. I am pleased that we have done very well against all three objectives and are seeing growing benefits flow to both our financial performance and our competitive position. Our resilient performance amid Covid-19 is a testament to the strength of our diversified portfolio, our differentiated strategy, our committed, dedicated teams, and the unique Olam spirit and culture.  

“We have moved with speed and focused intent through the Covid-19 crisis to protect the safety of our people, maintain the continuity of our operations, keep our supply chains open, serve our customers’ needs reliably, maintain our financial strength and help the communities where we operate in. All of these actions have helped us to continue to transform and improve our Company and has helped us to live up to our Purpose of ‘Re-imagining Global Agriculture and Food Systems’. 

“While the year ahead will remain challenging and uncertain with a range of outcomes that could impact demand and supply conditions across geographies, businesses and financial markets, we remain confident in the strength of our business model to emerge stronger from this crisis.” 

 

Olam Group CFO, N Muthukumar said:  “We continue to strengthen our balance sheet and maintain our financial strength through the crisis. In H1 2020, we concluded a series of new financing transactions, including an IFC/JICA loan, sustainability loan, samurai loan and refinanced a European RCF, all of which provided access to a diversified pool of capital to fund our operations and growth. We are pleased with the confidence shown by our banking partners and other debt providers in supporting these initiatives. 

“The successful execution of our strategy, our discipline in proactively controlling costs, conserving cash and managing our capital structure has helped us generate strong cash flows in H1 2020 (FCFE of S$826.9 million). We have also successfully completed the re-organisation of Olam into the three operating groups (OFI, OGA & OIL) and have reported the H1 results across the new operating groups and in the new segments for these groups. We are now working on determining the appropriate capital structure to serve the needs of our new operating groups and develop and execute a cost transformation and capital efficiency programme, which will drive profitable growth and further improve our returns going forward.” 

About Olam International Limited
For further information, please contact:
Contacts for Olam Investor Relations
  • Aditya Renjen
  • Senior Vice President
  • +65 66031104, 96570339
  • aditya.renjen@olamnet.com
  • Chow Hung Hoeng
  • General Manager
  • +65 63179471, 98346335
  • chow.hunghoeng@olamnet.com
Contacts for WATATAWA
  • Josephine Chew
  • Managing Director
  • +65 90610353
  • jchew@we-watatawa.com
  • Ong Chor Hao
  • Deputy Director
  • +65 96272674
  • chorhaoo@we-watatawa.com

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