The company plans to pay a final dividend of 3 cents per share, bringing its full-year payout to 6 cents, versus 7 cents paid for FY2023.
“We delivered ebit growth in 2024 even as we navigated elevated prices of some commodities due to supply challenges, volatile macroeconomic and market conditions, and sustained high interest rates," says CEO Sunny Verghese.
“We are also pleased to reach a major milestone in our re-organisation plan as we announced the sale of our remaining stake in Olam Agri to SALIC.
"This landmark deal will allow us to unlock significant value for our shareholders, right-size Olam Group’s capital structure and position Olam Agri for further profitable growth and value creation," says Verghese.
See also: Grand Venture Tech reports 1QFY2025 earnings of $2.6 mil, up 27.7% y-o-y
On Feb 24, Olam announced that it will sell its remaining 64.57% stake in Olam Agri to SALIC, or Saudi Agriculture & Livestock Investment Company, a state-owned Saudi investment firm.
Olam will first sell its 44.58% stake — or 1.51 billion shares — in SALIC for around US$1.78 billion ($2.35 billion), which will see SALIC owning a controlling stake of 80.01% in Olam Agri.
The sale puts Olam Agri’s implied 100% equity valuation at US$4 billion and represents a 14% premium to the US$3.5 billion valuation when SALIC first acquired a 35.43% stake in Olam Agri in December 2022 for U$1.29 billion.
See also: Revenue jump but inventory write-off pulls Samurai 2K Aerosol into the red
According to Verghese, with this deal, Olam will focus on supporting its key unit in its drive towards "growing its higher-margin and higher value-added ingredients" business.
Olam Group shares closed at 95 cents on Feb 28.
