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Consumer Non-Durables

Olam International Ltd.

Company Background

Olam was established in 1989 in Nigeria by Indian conglomerate Kewalram Chanrai Group. It eventually incorporated in Singapore as Olam International in 1995. The company started as an exporting company for agricultural products such as raw cashew nuts from Nigeria to India. Olam has since expanded its trading business to 65 countries with products now including grains, sugar and palm oil as well as materials for industry such as rubber, fertilizer and wood products. It is now one of the world's largest suppliers of cocoa and coffee. Following its initial public offering in 2005, Olam's growth strategy shifted to include mergers and acquisitions. The company has acquired stakes in various food and industrial material-related companies, including a 20% stake in Malaysian PureCircle, a producer of food sweeteners.

In 2012, Olam's stock price was hit by allegations from U.S.-based Muddy Waters over its acquisition and accounting practices, accusations denied by Olam. Recently, the company has taken initiatives to optimize its balance sheets by reducing stakes in noncore businesses. Investor sentiments were boosted when a consortium led by Temasek Holdings, Singapore's sovereign wealth fund, bought a majority stake in the company. Sunny George Verghese is the current group managing director and CEO of Olam. Verghese has led Olam since he built the business for Kewalram Chanrai Group while in Nigeria. Prior to joining the company, he worked for Unilever in India.

Business Summary

Olam International Ltd. engages in sourcing, processing, packaging, and merchandising of agricultural products. It operates through the following segments: Olam Food Ingredients (OFI), Olam Global Agri (OGA), and Olam International Limited (OIL). The OFI segment includes cocoa, coffee, edible nuts, spices and dairy. The OGA segment consists of grains, animal feed and protein, edible oil, rice, cotton and commodity financial services. The Oil segment involves in de-prioritized businesses (including sugar, wood products, rubber and fertilizer and other de-prioritized assets), gestating businesses (including olam palm gabon, packaged food, infrastructure and logistics) and incubating businesses. The company was founded by Sunny George Verghese in 1989 and is headquartered in Singapore.

Financial Highlights

Dec 2021 SGDUSD
Revenue47,001.95M34,975.29M
Gross Profit3,279.64M2,440.46M
Operating income1,354.19M1,007.69M
Income before tax716.96M533.50M
Net income628.83M467.93M
EBITDA1,981.39M1,474.40M
Diluted EPS0.180.13
Dividends Per Share0.080.06
Total Assets32,060.71M23,781.26M
Total liabilities26,188.82M19,425.74M
Total equity5,864.44M4,349.99M
Operating cash flow642.16M477.85M
Currency in SGDCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 26,272.52M 30,479.05M 32,992.72M 35,820.04M 47,001.95M
Gross Profit 936.43M 1,322.01M 1,177.00M 1,316.35M 3,279.64M
Operating income 443.11M 758.12M 619.23M 758.33M 1,354.19M
Income before tax 630.89M 380.61M 265.23M 108.24M 716.96M
Net income 524.10M 292.38M 261.11M 189.25M 628.83M
EBITDA 823.79M 1,150.95M 1,119.85M 1,319.60M 1,981.39M
Diluted EPS 0.17 0.08 0.07 0.05 0.18
Dividends Per Share 0.07 0.07 0.07 0.07 0.08
Total Assets 22,298.54M 23,446.81M 25,812.02M 26,702.64M 32,060.71M
Total liabilities 16,723.29M 18,029.16M 20,564.65M 21,712.39M 26,188.82M
Total equity 5,397.80M 5,278.96M 5,139.29M 4,916.72M 5,864.44M
Operating cash flow 1,680.11M 1,484.26M 646.58M -130.84M 642.16M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 19,031.46M 22,588.73M 24,184.71M 25,968.08M 34,975.29M
Gross Profit 678.33M 979.77M 862.77M 954.30M 2,440.46M
Operating income 320.98M 561.86M 453.91M 549.76M 1,007.69M
Income before tax 457.01M 282.08M 194.42M 78.47M 533.50M
Net income 379.65M 216.69M 191.40M 137.20M 467.93M
EBITDA 596.74M 853.00M 820.88M 956.65M 1,474.40M
Diluted EPS 0.12 0.06 0.05 0.04 0.13
Dividends Per Share 0.05 0.05 0.05 0.05 0.06
Total Assets 16,685.53M 17,202.36M 19,196.08M 20,204.01M 23,781.26M
Total liabilities 12,513.68M 13,227.56M 15,293.68M 16,428.24M 19,425.74M
Total equity 4,039.06M 3,873.04M 3,822.03M 3,720.14M 4,349.99M
Operating cash flow 1,217.04M 1,100.02M 473.96M -94.85M 477.85M

Valuation Measures

Dec 2021
PER9.56
ROA2.14%
ROE11.66%
Operating margin2.88%
Profit margin1.33%

Key executives

  • Group Chief Executive Officer & Executive Director: Sunny George Verghese
  • Group Chief Financial Officer & Managing Director: Neelamani Muthukumar
  • Chief Risk & Compliance Officer, Managing Director: Jagdish Achleshwar Prasad Parihar
  • CEO-Coffee & Managing Director: Vivek Verma
  • Chief Executive Officer-Edible Nuts & MD: Ashok Krishen

Shareholders

  • Temasek Capital Pte Ltd. (52.3%)
  • Mitsubishi Corp. (14.7%)
  • Kewalram Chanrai Holdings Ltd. (6.9%)
  • Orbis Investment Management Ltd. (4.8%)
  • VERGHESE SUNNY GEORGE (4.3%)
  • ANANTHARAMAN SHEKHAR (0.5%)
  • The Vanguard Group, Inc. (0.5%)
  • BlackRock Fund Advisors (0.1%)
  • Ruffer (Asia) Ltd. (0.1%)
  • Dimensional Fund Advisors LP (0.1%)

Contact Details

  • Website:http://www.olamgroup.com
  • Address: 7 Straits View, Marina One East Tower, Singapore, 018936, Singapore
  • Phone: +65.6339.4100

Related Companies

  • Olam Holdings Pte Ltd.
  • Olam Global Agri Americas LLC
  • Olam Cocoa Processing Cote d'Ivoire SA
  • Olam Brasil Ltda.
  • Olam Enterprises India Pvt Ltd.
  • Olam SRL (Paraguay)
  • Olam Food Ingredients
  • Olam Palm Gabon SA
  • Olam International Ltd. /Arise Industrial Zones/
  • Aviv Tanzania Ltd.
  • Olam Deutschland GmbH
  • Olam (Uganda) Ltd.
  • Olam Cocoa Deutschland GmbH
  • Olam Agro Peru SAC
  • Olam Italia SRL
  • Olea Investment Holdings Pte Ltd.
  • Olam International UK Ltd.
  • Outspan Taiwan Ltd.
  • Invenio Merx LP
  • Olam Treasury Pte Ltd.
  • Olam International - DMCC
  • Olam Agricola Ltda.
  • Congolaise Industrielle des Bois SA
  • Outspan Mexico SA de CV
  • Olam Agro Colombia SAS
  • Olam Agro Mexico SA de CV
  • Olam Holdings, Inc.
  • Olam Agro Guatemala SA
  • Olam Honduras SA de CV
  • Olam Nicaragua SA

Competitors

  • Barry Callebaut AG
  • Woodbois Limited
Last Updated on 18 Mar, 2022

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