Olam Credit Report
OLAM INTERNATIONAL
Brief Descriptions of Company Background
Olam International Limited is a leading global integrated supply chain manager and processor of agricultural products and food ingredients, supplying various products across 16 platforms present in 65 countries and have 12 functions.
Olam’s Governing Objective is to maximize long-term intrinsic value for its continuing shareholders in an ethical, socially responsible & environmentally sustainable manner, through Olam Sustainability Standard (OSS), being heat of Olam growing vision of Growing Responsibility, working through each step of its value chain to identify and implements processes and measures to deliver sustainable agriculture products across geographies by 2020.
By providing this value, it aims to impact 3 key drivers:
1. Open up the capital spread (ROE-Ke & ROIC-WACC) 2. Increase the rate of profitable growth 3. Increase the duration of growth
Our Executive Summary
Financial Summary
Net gearing was reduced from 2.2 times in FY2011 to 1.8 times in FY2012.
A strong liquidity position with total available liquidity of S$10.5 billion, including cash and short term deposits of S$1.1 billion and untapped bank facilities of S$4.3 billion.
Total debt facilities available to were S$11.8 billion as at end FY2012.
Financial Performance * Revenue Performance The major source of revenue is comes from sales of goods, services and other income. Main contributor are sales of goods and services which contributes about 99.7% of the revenue in 2012. Growth rate for sales is 8.17% in 2012 a huge drop from the previous year of 50.47% and revenue from other income falls by 58.74%. Total revenue is 17.145 billion SGD, 7.64% y-o-y. * Profitability Gross profit margin have remain relatively stable, fall by 2.455% in 200 follow by rise of 1.939% in 2012. Despite the relative stable profit margin, there are significant growth in both revenue and cost
Brief Descriptions of Company Background
Olam International Limited is a leading global integrated supply chain manager and processor of agricultural products and food ingredients, supplying various products across 16 platforms present in 65 countries and have 12 functions.
Olam’s Governing Objective is to maximize long-term intrinsic value for its continuing shareholders in an ethical, socially responsible & environmentally sustainable manner, through Olam Sustainability Standard (OSS), being heat of Olam growing vision of Growing Responsibility, working through each step of its value chain to identify and implements processes and measures to deliver sustainable agriculture products across geographies by 2020.
By providing this value, it aims to impact 3 key drivers:
1. Open up the capital spread (ROE-Ke & ROIC-WACC) 2. Increase the rate of profitable growth 3. Increase the duration of growth
Our Executive Summary
Financial Summary
Net gearing was reduced from 2.2 times in FY2011 to 1.8 times in FY2012.
A strong liquidity position with total available liquidity of S$10.5 billion, including cash and short term deposits of S$1.1 billion and untapped bank facilities of S$4.3 billion.
Total debt facilities available to were S$11.8 billion as at end FY2012.
Financial Performance * Revenue Performance The major source of revenue is comes from sales of goods, services and other income. Main contributor are sales of goods and services which contributes about 99.7% of the revenue in 2012. Growth rate for sales is 8.17% in 2012 a huge drop from the previous year of 50.47% and revenue from other income falls by 58.74%. Total revenue is 17.145 billion SGD, 7.64% y-o-y. * Profitability Gross profit margin have remain relatively stable, fall by 2.455% in 200 follow by rise of 1.939% in 2012. Despite the relative stable profit margin, there are significant growth in both revenue and cost