SINGAPORE - Olam on Aug 14 posted a 488.8 per cent rise in net profit to $1.9 billion for its first half year ended June 30, from $323.8 million a year earlier.This was driven by a total one-off gain of about $1.8 billion following divestments of its 44.58 per cent stake in agribusiness unit Olam Agri and the entirety of IT and digital services unit Mindsprint.Olam Group noted that it also recognised an accounting gain on the valuation of its remaining stake in Olam Agri.In April, the group said it secured all required regulatory approvals from a total of 21 jurisdictions for its proposed US$1.8 billion (S$2.3 billion) sale of 44.58 per cent of Olam Agri to a Saudi fund. The deal was first announced in February 2025 as part of the group’s broader multi-year restructuring plan.Gautam Wadhwa, CEO of the remaining Olam Group, said: “Our re-organisation plan to unlock value for shareholders from divestments is on track, with three businesses sold or wound down, and the sale of our remaining stake in Arise P&L making progress.“We remain focused on delivering a resilient operational performance as we continue to work on responsibly divesting and monetising these assets over time,” he added.Meanwhile, net profit from continuing operations in the remaining Olam Group and food ingredients arm, ofi, fell 66 per cent during the six-month period to $55.6 million from $163.7 million a year earlier.Olam Group’s revenue was down 18.3 per cent at $12.5 billion from $15.3 billion in the corresponding year-ago period. This, Olam Group said, was mainly due to the “marked drop in input prices in ofi, namely cocoa and coffee, coupled with lower volumes in the remaining Olam Group”.Earnings per share stood at 50.23 cents, up from 8.16 cents in the year-ago period. The EPS comprises 1.04 cents from the group’s continuing operations and 49.19 cents from its discontinued operations.The group declared a total dividend of seven cents per share, up from two cents a year ago. The payout comprise an interim dividend of one cent a share and a special dividend of six cents per share. It will be paid out on Aug 31.The group’s net gearing stood at 0.93 times, down from 2.09 times a year earlier, which the company attributed to “reduced net debt with deleveraging at the remaining Olam Group from divestment proceeds and lower working capital related debt in ofi”.Olam Group noted that while it expects the constituent businesses of the remaining Olam Group to deliver “resilient operational performance in 2026”, it is monitoring the global environment for any adverse changes. For example, an escalation of the Middle East war “could negatively impact the performance of these businesses”.Shares of Olam Group fell 6.9 per cent to $1.21 as at 9.16am, after its results announcement. THE BUSINESS TIMES