Olam Group posts strong H1 2025 results as food ingredients arm drives growth

SINGAPORE – Olam Group has reported a 573% profit increment in the first half of 2025, lifted by strong performance in its food ingredients business and better results across its remaining operations. 

Group profit after tax (PATMI) surged to S$323.8 million (US$240 million), more than five times higher than a year earlier, while revenue climbed 23.8% to S$33.3 billion (US$24.6 billion). 

Operating profit (EBIT) rose 35.5% to S$1.2 billion (US$888 million), supported by a turnaround in Olam’s non-agri portfolio and double-digit earnings growth at its food ingredients arm, ofi. The company declared an interim dividend of 2.0 cents per share.

“We delivered strong PATMI growth on the back of operating profit growth in H1 2025 despite volatile and adverse macroeconomic and geopolitical conditions,” said Sunny Verghese, Co-Founder and CEO of Olam Group. 

He stated that the company is making steady progress in executing its updated 2025 Re-organisation Plan aimed at unlocking shareholder value. 

As part of this plan, Olam intends to sell Olam Agri to Saudi Agricultural & Livestock Investment Company (SALIC) and responsibly divest assets and businesses within the Remaining Olam Group. 

The group will prioritise its food ingredients arm, ofi, to help the division realise its full potential value.

ofi – food ingredients 

ofi, which supplies cocoa, coffee, dairy, nuts, spices and customised blends to global food and beverage brands, recorded EBIT growth of 12.7% to S$535.8 million (US$397 million). 

Demand for value-added ingredient solutions and higher selling prices for cocoa and coffee underpinned its performance. 

The division secured US$2.45 billion in new loan facilities to fund expansion, and it expects steady sales growth and high single-digit profit gains over the medium term.

Olam Agri steady despite tariff pressures

Olam Agri, slated for complete sale to Saudi Agricultural & Livestock Investment Company (SALIC), posted revenue of S$18.1 billion (US$13.4 billion), up 7.9%. 

Its EBIT slipped 2.3% to S$494.4 million (US$366 million) as strong gains in food and animal feed processing were offset by weaker trading and lower cotton margins.

Market outlook

The company reported better working-capital control, with Free Cash Flow improving to negative S$945.3 million (US$700 million) from negative S$5.4 billion (US$4.0 billion) last year.

ofi’s CEO, A. Shekhar, said the first half remained challenging, with persistent supply risks and commodity volatility, but its “integrated and diversified model proved its strength, enabling us to navigate turbulence, support suppliers, and deliver for customers globally.” 

He added that disciplined execution and a focus on value-creating opportunities drove strong EBIT growth in Global Sourcing, while Ingredients & Solutions kept expanding volumes. 

“While we expect continued volatility in the near term, we remain confident in our ability to adapt, create value, and deliver on our medium-term guidance of high single-digit EBIT growth,” Shekhar said.

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