Olam shares fall 8.5% after H1 continuing operations profit drops, revenue declines
It posts an almost six times rise in net profit to S$1.9 billion for its first half year ended Jun 30
Olam Group's shares fell by 8.5% following its H1 results release, with the stock trading at an intra-day low of S$1.19, as the company reported a significant drop in both profit and revenue. The first half year ended June 30 saw net profit from continuing operations plunge by 66% to S$55.6 million, compared to S$163.7 million a year earlier.
This decline was attributed to lower prices for raw materials, such as cocoa and coffee, along with reduced volumes. The company also divested a 44.58% stake in its agribusiness unit Olam Agri and its entire IT and digital services unit Mindsprint, resulting in a staggering one-off gain of approximately S$1.8 billion. Additionally, there was an accounting gain on the valuation of the remaining stake in Olam Agri.
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