Olam Group – one of the world’s biggest agricultural traders – posted an 8.3% drop in its annual net profit, as better performance at its agricultural unit was offset by higher finance and input costs. Olam reported profit of S 629.1 million (approx. $474.06 million) for the year ended 31 December 2022, down from S 686.4 million (approx. $517.27 million) a year ago.
During the year, the group’s subsidiary olam food ingredients (ofi) acquired Canada’s Coffee Club and Germany-based wholesaler and distributor of food products Märsch Importhandels, as well as investing in new coffee manufacturing facilities in Brazil and dairy ingredient manufacturing in New Zealand.
Meanwhile, the Group’s agribusiness subsidiary Olam Agri made strategic investments in Nigeria with the expansion of its fish feed milling capacity, its rice milling capacity and increasing its fleet of trucks to more than 1,000, supporting the logistical needs of its wheat milling and pasta business.
Most notably, Olam Group completed the sale of a 35.43% minority stake in Olam Agri to The Saudi Agricultural and Livestock Investment Company (SALIC) for $1.24 billion. SALIC, a wholly owned subsidiary of the Public Investment Fund of the Kingdom of Saudi Arabia, and Olam Agri entered into a ‘Strategic Supply & Cooperation Agreement’ to accelerate Olam Agri’s access to the large and high-growth Middle East markets.