, Singapore

Olam's PATMI grew 6.1% to $179.1m in Q1

It was thanks to gains from selling their stake in Far East Agri.

Agri-firm Olam International saw its profit after tax and minority interests (PATMI) edge up 6.1% YoY to $179.1m in Q1 from $168.8m in 2019, a local bourse filing revealed.

This comes on the back of $43.2m in net gains during the quarter, thanks to the divestment of the company’s remaining 50% stake in Far East Agri, which held its sugar refinery assets in Indonesia. The reduction of their effective interest in ARISE P&L from 40.5% to 30.6% also contributed to the PATMI.

Revenue likewise rose 4.6% YoY to $7.68b from $7.35b over the same period. EBITDA declined 7% to $390.9m due to lower contributions from edible nuts, spices, coffee, dairy and edible oils, but was countered by improvements in cocoa, grains and animal feed & protein and cotton.

Operational PATMI crashed 24.9% YoY to $135.9m in line with the lower EBITDA and due to higher finance costs arising from increased working capital, and higher depreciation and amortisation.

“The impact on demand from COVID-19 varied across products,” said Olam. “We experienced lower demand in some of our non-food categories like cotton and in food products with significant out-of-home consumption like edible oils and coffee. We also saw lower demand in almonds and dairy due to the lockdown in China. However, demand for most food staples was generally resilient and spiked in some cases due to the pantry restocking effect both at the household and retail level.”

Further, the firm noted that since 80-85% of the group’s revenues are in the food category, demand is less sensitive to recession or economic downcycles.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


How investor stewardship puts companies in a win-win state
Stewardship Asia Centre CEO says a company’s failure to take care of society is a failure to take care of its stakeholders.
Creating harmony in a heterogonous workforce 
An HR expert said tests like DISC can help identify which employees can work best together.