Asia300

Olam International Ltd.

Singapore

  • 1m
  • 3m
  • 6m
  • 1y
  • 2y
  • 5y
Aug 16, 2017
Prev close: 2.01
Aug 16, 2017
Market cap:
Market cap(USD):
5,693.59M
4,163.67M
Shares: 2,832.63M

Currency in SGD

Company profile

Market(Ticker): SES(O32)
Sector:
Industry:
Consumer Non-Durables
Food: Major Diversified
Full time employees: 69,800

Business summary

Olam International Ltd. engages in the manufacturing and marketing of agricultural products and food ingredients. It operates through the following business segments: Edible Nuts, Spices and Vegetable Ingredients; Confectionery and Beverage Ingredients; Food Staples and Packaged Foods; Industrial Raw Materials, Ag Logistics & Infrastructure; and Commodity Financial Services. The Edible Nuts, Spices and Beans segment produces cashews, peanuts, almonds, hazelnuts, sesame, beans, and spices and vegetable ingredients. The Confectionary and Beverage Ingredients segment includes cocoa, coffee, and sheanuts. The Food Staples and Packaged Foods segment comprises of rice, grains, palm products, dairy products, packaged foods, and sugar and natural sweeteners. The Industrial Raw Materials, Ag Logistics & Infrastructure segment manufactures cotton, wood products, rubber, and fertilizer. The Commodity Financial Services segment provides market making, risk management solutions, and commodity funds management. The company was founded by Sunny George Verghese on July 4, 1995 and is headquartered in Singapore.

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.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 20,587.03M
Gross profit 1,188.27M
Operating income 741.44M
Income before tax 433.40M
Net income 317.74M
EBITDA 1,094.92M
Diluted EPS 0.11
Dividends per share 0.06
Total assets 23,468.88M
Total liabilities 18,764.99M
Total equity 4,467.92M
Operating cash flow 619.61M

Currency in SGD

Revenue 14,911.13M
Gross profit 860.66M
Operating income 537.02M
Income before tax 313.91M
Net income 230.14M
EBITDA 793.05M
Diluted EPS 0.08
Dividends per share 0.04
Total assets 16,244.81M
Total liabilities 12,988.85M
Total equity 3,092.63M
Operating cash flow 448.78M

Currency in USD

Valuation measures

Dec 2016

PER 17.07
ROA 1.43%
ROE 6.79%
Operating margin 3.60%
Profit margin 1.54%

Key executive

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

Share holders

  • Temasek Capital Pte Ltd.(50.3%)
  • Mitsubishi Corp.(19.5%)
  • Orbis Investment Management Ltd.(7.5%)
  • Kewalram Chanrai Holdings Ltd.(4.7%)
  • VERGHESE SUNNY GEORGE(3.9%)
  • Olam International Ltd.(3.5%)
  • ANANTHARAMAN SHEKHAR(0.4%)
  • Norges Bank Investment Management(0.4%)
  • Dimensional Fund Advisors LP(0.1%)
  • Capital International, Inc.(0.0%)

Address

  • Website: http://www.olamgroup.com
  • Address: No. 11-02, Suntec Tower 2, 9 Temasek Boulevard, Singapore, 038989, Singapore
  • Phone: +65.6339.4100

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