Singapore, August 6, 2023 – Olam Group, a leading global supplier of coffee, cocoa, and nuts, experienced a significant decrease in its shares earlier today. The company announced that its earnings for the first half of the year are expected to be “materially lower” due to various factors.
Almond Orchards Impacted by Weather Patterns and Low Bee Activity
Olam Group reported a remarkable decline in its almond crop yield in Australia, attributing it to abnormal weather patterns and reduced bee activity during pollination. This unexpected turn of events has led to a drop in profits and has raised concerns among investors.
As a result of these challenges, Olam Group anticipates incurring a net exception one-off charge of approximately US$83.0 million on a post-tax basis for the first half of the year. Despite this setback, the company remains optimistic about its profitability for both the first half of 2023 and the fiscal year.
Following the announcement, Olam Group’s shares experienced a sharp decline, falling as much as 5.7% to 1.32 Singapore dollars (US$1.00). This marks the lowest intraday level the company has seen since October. Shareholders are now facing the biggest one-day loss since May 2012.
Outlook for Olam Group
While the challenges faced by Olam Group are indeed concerning, the company is confident in its ability to recover. With a strong presence in the global market as a leading supplier of coffee, cocoa, and nuts, Olam Group is well-positioned to navigate these difficulties and continue its profitability.