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Consumer Non-Durables

Olam International Ltd.

  • 1.77 SGD
  • +0.09
  • +5.36%
  • Singapore
    Nov 14, 2018
  • Ticker
    SES(O32)
  • Prev. close
    1.68
  • Market cap (SGD)
    5,495.31M
  • Market cap (USD)
    3,976.36M
  • Shares
    3,271.01M

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: Edible Nuts, Spices, and Vegetable Ingredients; Confectionery and Beverage Ingredients; Food Staples and Packaged Foods; Industrial Raw Materials, Ag Logistics, and Infrastructure; and Commodity Financial Services (CFS). The Edible Nuts, Spices, and Vegetable Ingredients segment produces cashews, peanuts, almonds, hazelnuts, pistachios, walnuts, sesame and beans, pulses, lentils and peas, pepper, onion, garlic, capsicums, and tomato. The Confectionery and Beverage Ingredients segment includes cocoa and coffee. The Food Staples and Packaged Foods segment comprises of rice, sugar and sweeteners, grains and animal feed, edible oils, dairy, and packaged foods. The Industrial Raw Materials, Ag Logistics, and Infrastructure segment manufactures cotton, wood products, rubber, and fertilizer. The CFS segment provides market making, volatility trading, and asset management; risk management solutions; and trade and structured finance. The company was founded by Sunny George Verghese on July 4, 1995 and is headquartered in Singapore.

Financial Highlights

Dec 2017 SGDUSD
Revenue26,272.52M19,031.46M
Gross Profit936.43M678.33M
Operating income443.11M320.98M
Income before tax630.89M457.01M
Net income524.10M379.65M
EBITDA823.79M596.74M
Diluted EPS0.170.12
Dividends Per Share0.070.05
Total Assets22,298.54M16,685.53M
Total liabilities16,723.29M12,513.68M
Total equity5,397.80M4,039.06M
Operating cash flow1,680.11M1,217.04M
Currency in SGDCurrency in USD

Historical Data

 Jun 2013Jun 2014Dec 2015Dec 2016Dec 2017
Revenue 20,801.79M 19,421.80M 18,820.48M 20,587.03M 26,272.52M
Gross Profit 1,192.27M 1,367.37M 948.57M 1,188.27M 936.43M
Operating income 899.82M 995.12M 555.89M 741.44M 443.11M
Income before tax 476.16M 745.59M 157.17M 433.40M 630.89M
Net income 343.31M 590.49M 49.16M 317.74M 524.10M
EBITDA 1,099.13M 1,210.70M 783.88M 1,094.92M 823.79M
Diluted EPS 0.14 0.24 0.01 0.11 0.17
Dividends Per Share 0.04 0.05 0.06 0.06 0.07
Total Assets 15,384.18M 16,306.59M 20,792.35M 23,468.88M 22,298.54M
Total liabilities 11,560.45M 12,084.26M 15,670.79M 18,764.99M 16,723.29M
Total equity 3,691.86M 4,200.18M 4,880.98M 4,467.92M 5,397.80M
Operating cash flow 250.17M -298.67M -543.57M 619.61M 1,680.11M
 Jun 2013Jun 2014Dec 2015Dec 2016Dec 2017
Revenue 16,787.68M 15,416.16M 13,685.05M 14,911.13M 19,031.46M
Gross Profit 962.20M 1,085.36M 689.74M 860.66M 678.33M
Operating income 726.18M 789.88M 404.21M 537.02M 320.98M
Income before tax 384.28M 591.81M 114.28M 313.91M 457.01M
Net income 277.06M 468.70M 35.75M 230.14M 379.65M
EBITDA 887.03M 961.00M 569.98M 793.05M 596.74M
Diluted EPS 0.11 0.19 0.01 0.08 0.12
Dividends Per Share 0.03 0.03 0.04 0.04 0.05
Total Assets 12,129.76M 13,080.32M 14,656.43M 16,244.81M 16,685.53M
Total liabilities 9,114.92M 9,693.39M 11,046.27M 12,988.85M 12,513.68M
Total equity 2,910.87M 3,369.17M 3,440.58M 3,092.63M 4,039.06M
Operating cash flow 201.89M -237.07M -395.25M 448.78M 1,217.04M

Valuation Measures

Dec 2017
PER10.90
ROA2.29%
ROE10.62%
Operating margin1.68%
Profit margin1.99%

Key executives

  • Group Chief Executive Officer & Executive Director: Sunny George Verghese
  • Group Chief Operating Officer & Executive Director: Shekhar Anantharaman
  • Group Chief Financial Officer: Neelamani Muthukumar
  • CEO-Coffee & Managing Director: Vivek Verma
  • Chief Executive Officer-Edible Nuts & MD: Ashok Krishen

Shareholders

  • Temasek Capital Pte Ltd. (52.1%)
  • Mitsubishi Corp. (16.9%)
  • Kewalram Chanrai Holdings Ltd. (6.8%)
  • Orbis Investment Management Ltd. (6.7%)
  • VERGHESE SUNNY GEORGE (4.0%)
  • Olam International Ltd. (2.6%)
  • ANANTHARAMAN SHEKHAR (0.4%)
  • Norges Bank Investment Management (0.2%)
  • Dimensional Fund Advisors LP (0.0%)
  • MAK SENG FOOK (0.0%)

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 Treasury Pte Ltd.
  • PT Ace Dalle Kokoa Manufaktur
  • 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
  • Argonuts Ltd. /Hazelnut Processing Plant/
  • Outspan Guatemala SA
  • Outspan Ecuador SA
  • Caraway Pte Ltd.
  • Olam Farming, Inc.
  • Olam International Ltd. /Australian Wool Bus/
  • Olam Tomato Processors, Inc.
  • McCleskey Mills, Inc.
  • Olam Food Ingredients Spain SL
  • Gabon Special Economic Zone SA
  • Archer Daniels Midland Co. /Cocoa Bus/
  • Olam Ivoire S.A.R.L.
  • Outspan Colombia S.A.S. Ci
  • Olam Tanzania Ltd.
  • Olam Orchards Australia Pty. Ltd.
  • Key Foods Hong Kong Ltd.
  • Far East Agri Pte. Ltd.
  • Cafe Outspan Vietnam Ltd.
  • Olam International Ltd. /Nigerian Instant Noodles Ops/

Competitors

  • Barry Callebaut AG
  • Sensient Technologies Corporation
Last Updated on 14 Nov, 2018

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