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Olam Group profit sky-rockets 414% to $444.1m as cash flow turns positive

FY2025 rebound lifts EBIT to $1.3b as gearing eases ahead of stake sale.

Olam Group reported a profit after tax and minority interests (PATMI) of $444.1m for the year ended 31 December 2025, up 414% from a year earlier, according to its financial results released on 27 February.

On an operational basis, which excludes exceptional items, PATMI rose 136.2% to $510.9m, reflecting stronger underlying performance across its continuing businesses.

The higher attributable profit translated into a recovery in earnings per share (EPS) year-on-year, in line with the improved bottom line.

Group earnings before interest and tax (EBIT) from continuing operations increased 37.9% to $1.3b. Including discontinued operations, total EBIT stood at $2.2b.

Its food ingredients arm, ofi, recorded steady EBIT of about $1.1b, supported by higher revenues driven largely by elevated cocoa and coffee prices.

The remaining Olam Group businesses posted EBIT of $197.7m, reversing losses in the previous financial year.

Olam Agri, which is classified as a discontinuing operation, saw revenue rise 12.7% to $37.4b. However, EBIT declined 9% to $923.5m amid softer commodity prices.

Free cash flow to equity turned positive at $359.6m, compared to a negative outturn in FY2024. Net gearing eased to 2.69 times from 2.79 times previously.

CEO Sunny Verghese said the improvement in profit was supported by stronger operating performance despite continued market volatility.

The company is also progressing with the sale of a 44.58% stake in Olam Agri, with approval pending in one remaining jurisdiction.

During the year, Olam also completed a $632.24m (US$500m) capital injection into its food ingredients business and carried out share buybacks totalling about 22.2 million shares, according to its filing.

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