Olam Group net profit surges 489% to US$1.9B in H1 2026
Strategic divestments strengthened Olam’s balance sheet as lower commodity prices and volumes weighed on revenue and operating earnings during the first half.
SINGAPORE – Olam Group Limited reported a 488.7% year-on-year increase in net profit to US$1.9 billion for the six months ended June 30, 2026, driven largely by US$1.75 billion in one-off gains from strategic disposals and fair-value adjustments.
The gains came from the disposal of a 44.58% stake in Olam Agri, the sale of Olam’s entire interest in Mindsprint, and a fair-value gain from valuing the put and call options covering the group’s remaining stake in Olam Agri.
Despite the sharp increase in net profit, revenue declined 18.3% to US$12.5 billion. Olam said the decline was mainly due to lower cocoa and coffee prices, which reduced input prices at ofi, while OGH recorded lower volumes.
Earnings before interest and tax (EBIT) fell 34.2% to US$455 million. Excluding US$187.4 million in significant non-cash foreign-exchange revaluation gains recorded in the first half of 2025, EBIT declined about 10% year-on-year.
Net gearing improved to 0.93 times from 2.09 times a year earlier, supported by debt reduction at OGH using proceeds from divestments and lower working-capital-related debt at ofi.
Olam Group Executive Director and CEO of ofi A. Shekhar said the period represented an important milestone for the group.
“The first half of 2026 marks an important milestone in Olam Group’s journey. Following the completion of the first tranche of the Olam Agri transaction, we have significantly strengthened our balance sheet, enhanced financial flexibility and demonstrated our ability to unlock value for shareholders,” Shekhar said.
“At ofi, our performance demonstrates the resilience of our integrated business model. Despite continued market volatility and geopolitical uncertainty, we delivered stable earnings with significant reduction in capital deployment, leading to improved capital efficiency, strong cash generation and higher net earnings,” he added.
Olam said the global economic outlook for the remainder of 2026 would remain affected by geopolitical developments, trade policies and macroeconomic conditions. These factors could influence demand, international trade flows, supply chains, inflation, interest rates and global growth.
ofi expects continued uncertainty from geopolitical developments, evolving trade policies, macroeconomic conditions and weather-related supply risks. The company said it would maintain disciplined capital allocation while reviewing selected upstream agricultural assets, including almond orchards and certain coffee, pepper and cocoa plantations.
ofi continues to target low- to mid-single-digit volume growth and high-single-digit adjusted EBIT growth over the medium term.
OGH CEO Gautam Wadhwa said its reorganisation plan remained on track.
“Our Re-organisation Plan to unlock value for shareholders from divestments is on track, with three businesses sold or wound down, and the sale of our remaining stake in ARISE P&L making progress,” Wadhwa said.
“We remain focused on delivering a resilient operational performance as we continue to work on responsibly divesting and monetising these assets over time,” he added.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
