Olam Group Limited has reported a remarkable 488.7% increase in its Profit After Tax and Minority Interest (PATMI) for the first half of 2026, reaching $1.9b. This surge is largely attributed to a one-off gain of $1.75b from the disposal of a 44.58% stake in Olam Agri and a 100% interest in Mindsprint, alongside a fair value gain on the valuation of the put and call option for the remaining stake in Olam Agri.
The company’s revenue, however, saw an 18.3% decline to $12.5b, primarily due to reduced input prices in its food ingredients business, particularly cocoa and coffee, and lower volumes in Olam Global Holdings (OGH). Despite these challenges, Olam’s Executive Director and CEO of ofi, A. Shekhar, highlighted the resilience of their integrated business model, noting stable earnings and improved capital efficiency.
Olam’s net gearing has significantly decreased from 2.09 times to 0.93 times, thanks to de-leveraging efforts from divestment proceeds and reduced working capital-related debt. The Board has declared a total dividend of 7.0 pence per share, comprising an interim ordinary dividend of 1.0 pence and a special dividend of 6.0 pence.
Looking ahead, Olam Group remains focused on long-term growth and capital efficiency, with plans to continue its divestment programme. CFO Venkataraman Krishnan stated, “Our financial results today reflect a less complex, more focused and financially stronger business.”
The company anticipates ongoing market volatility due to geopolitical developments and macroeconomic conditions but remains committed to disciplined capital allocation and strategic asset evaluation to enhance returns and improve earnings resilience.
