Singapore-based agri-business major Olam International reported profits of S$264.95mn (vs. a loss of S$87mn in H2 2020) and S$686.43mn (+179%) on revenues of S$24.17bn (+29%) and S$47bn (+31.2%) for H2 and 2021 respectively. The company said that its annual operational PATMI (profits after tax & minority interest) hit a record high of S$961.1mn, up 41.8% on the back of a 16.8% and 51.5% growth in EBIT from ofi (Olam Food Ingredients) and Olam Agri to S$126mn and S$256mn respectively. On the balance sheet front, Olam ended 2021 with total borrowings of S$15.73bn (+18.8%) against cash of S$4.3bn and available liquidity of S$22.5bn with gearing maintained at 1.72x. On the restructuring, Olam said that the shareholders approved Scheme of Arrangement is expected to take effect on March 15. ofi will list in Q2 2022 with a primary listing in London and a secondary listing in Singapore. The company added that it is “Exploring various strategic options to maximise the value of Olam Agri, including the potential introduction of strategic minority partner(s) via sale of significant minority stake in Olam Agri and/or the potential IPO and demerger of Olam Agri.” The company announced a second interim dividend of S$0.45/share taking the total for 2021 to S$0.85/share.
Olam’s SGD 5.375% Perps traded a tad higher to 97.15 to yield 6.13%.
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