Olam shares close 7.7% lower after H1 continuing operations profit and revenue decline
It posts an almost-six-time rise in net profit to S$1.9 billion for its first half year ended Jun 30
[SINGAPORE] Shares of Olam Group fell as much as 8.5 per cent on Friday (Aug 14) morning, after it released its H1 results pre-market open.
At 9.10 am, Olam shares were trading at an intra-day low of S$1.19, 8.5 per cent or S$0.11 lower. The counter pared losses subsequently, ending the day 7.7 per cent or S$0.10 lower at S$1.20.
On Friday, it posted an almost-six-time rise in net profit to S$1.9 billion for its first half-year ended Jun 30, from S$323.8 million the year before.
This was driven by a total one-off gain of about S$1.8 billion following divestments of its 44.58 per cent stake in agribusiness unit Olam Agri and the entirety of IT and digital services unit Mindsprint.
Olam Group noted that it also recognised an accounting gain on the valuation of its remaining stake in Olam Agri.
Meanwhile, net profit from continuing operations in the remaining Olam Group and food ingredients arm, ofi, fell 66 per cent during the six-month period to S$55.6 million from S$163.7 million the year before.
Revenue was also down, 18.3 per cent lower at S$12.5 billion, from S$15.3 billion in the corresponding year-ago period.
Olam Group said that this was mainly due to the “marked drop in input prices in ofi, namely cocoa and coffee, coupled with lower volumes in the remaining Olam Group”.
