Olam International (VC2) investor relations material

Executive summary

• PATMI surged to S$1.9 billion, up 445.8%–488.7% year-over-year, driven by S$1.75 billion in one-off gains from the sale of a 44.58% stake in Olam Agri and 100% of Mindsprint, as well as option valuation gains, significantly strengthening the balance sheet and providing financial flexibility.

• Revenue from continuing operations fell 18.3% year-over-year to S$12.47–S$12.5 billion, reflecting lower input prices and volumes.

• Net gearing improved to 0.93x from 2.09x, the lowest since 2021, reflecting strong deleveraging and cash generation.

• The group declared total dividends of 7.0 cents per share (1.0 cent interim, 6.0 cent special), demonstrating a commitment to shareholder returns.

• The business is now focused on two continuing segments: ofi (Olam Food Ingredients) and OGH (Olam Global Holdco), with a simpler, less complex, and financially stronger structure.

Financial highlights

• EBIT from continuing operations declined 34.2% to S$455 million, with operational PATMI at S$64.4 million, mainly due to the absence of prior year one-off FX gains.

• Free cash flow to equity turned positive at S$1.7 billion, supported by divestment proceeds and working capital release.

• Operating expenses decreased 19.9% year-over-year, while finance costs dropped 21.5%.

• Net asset value per share increased to 247.48 cents.

• Group volumes for continuing businesses were down 9.6%–10% year-over-year, mainly due to business closures.

Outlook and guidance

• The group expects continued volatility and uncertainty in commodity, energy, and financial markets, with ongoing geopolitical, trade, and macroeconomic risks.

• Targets low- to mid-single digit volume growth and medium to high single-digit EBIT growth over the medium term.

• Full impact of restructuring and divestments will be more visible in 2026 and 2027.

• Focus remains on disciplined capital allocation, portfolio simplification, and leveraging digital and AI capabilities.