Olam Group's Food Ingredients Earnings Seen Normalizing

Dow Jones
Aug 20

0252 GMT - Olam Group's food ingredients business earnings are seen normalizing sharply, contributing to Maybank Securities slashing its estimates for 2026-2028 profit after tax and minority interests by 34%-47%. The segment's near-term earnings could be influenced by the lagged pass-through of commodity-price movements, says analyst Hussaini Saifee in a note. Sharp declines in cocoa and coffee prices could progressively weigh on the Singapore-listed agribusiness's earnings before interest and taxes, he says. Still, the company's medium-term segment EBIT growth goals remain intact, thanks to ingredients and solutions-related investments made during 2021-2024, he adds. Maybank Securities cuts its target price to 1.45 Singapore dollars from S$1.60 and maintains a buy rating. Shares shed 1.6% to S$1.22.

 

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