Olam Group Ltd., a prominent agricultural trader, reported an improvement in its second-half performance following a report of an ongoing investigation in Nigeria.
The company disclosed that its earnings soared by 15.5% to S$230.8 million ($172 million) in the six months ending in December as announced in a recent exchange filing.
Despite facing challenges throughout the year, including high borrowing costs and operational hurdles, Olam Group posted double-digit growth across various metrics in the latter half of the year.
The substantial improvement in earnings has buoyed investor confidence, reflecting optimism about the company’s resilience and capacity to navigate challenging market conditions.
The company’s share price rose by 10% during Singapore trading.
However, Olam Group’s full-year net income experienced a sharp decline, plummeting by 56% to S$278.7 million.
The company attributed this downturn primarily to high interest rates, which resulted in a significant increase in net finance costs amounting to S$401.9 million.
Olam Group’s Chief Executive Officer, Sunny Verghese, expressed optimism about the future, anticipating a decrease in interest rates in the latter part of 2024.
Also, the company announced plans to launch a share buyback program, signaling its belief that the group is currently undervalued in the market.
