Olam International - 6264 Words

SINGAPORE MITA No. 013/06/2008 Company Report 12 March 2009 Olam International Ltd Gravity-defying growth Resilient to recession. Olam International Ltd (Olam) has been delivering consistent revenue and earnings growth since its listing in 2005, and growth momentum is expected to sustain despite the global recession. Management has guided for 16% to 20% topline CAGR and 25% to 30% earnings CAGR over the next three years. These goals are achievable, given that demand for food is relatively inelastic and earnings are therefore less vulnerable to the global economic downturn. Olam has already proven its resilience by delivering a 32.9% growth in 1H09 core earnings despite the recent collapse of commodity prices, demonstrating its†¦show more content†¦Listed on the SGX Mainboard, Olam is a component of the Straits Times Index and MSCI Singapore. Strong track record. Olam International Ltd (Olam) has delivered consistent revenue and earnings growth since its listing in 2005. Revenue has grown at a compound annual growth rate (CAGR) of 34.0% while earnings have similarly risen by 36.5 %. Despite the recent collapse of commodity prices, Olam continued to deliver a 32.9% growth in 1H09 core earnings on the back of a 20.2% growth in volume, demonstrating its ability to perform under difficult conditions. Exhibit 1: Revenue, FY05 - FY08 9,000 8,000 7,000 6,000 S$ m 5,000 4,000 3,000 2,000 1,000 0 FY05 FY06 FY07 3,369 4,361 CAGR: 34.0 % 5,456 8,112 FY08 Source: Company Page 3 12 March 2009 Olam International Ltd Exhibit 2: Net profit, FY05 - FY08 180.0 160.0 140.0 120.0 S$ m 100.0 80.0 60.0 40.0 20.0 0.0 FY05 FY06 FY07 65.9 87.2 109.0 CAGR: 36.5% 167.7 FY08 Source: Company Resilient to economic contraction. Despite the global economic recession, Olam remains confident of sustaining its earnings growth momentum. Management guides for 16% to 20% topline CAGR and 25% to 30% earnings CAGR over the next three years. These goals are achievable, given that demand for food is relatively inelastic and less susceptible to the global economic turmoil. Agricultural products are less prone to cyclical volatility of commodities as compared to metals and energy, as illustrated inShow MoreRelatedOlam International6278 Words   |  26 PagesSINGAPORE MITA No. 013/06/2008 Company Report 12 March 2009 Olam International Ltd Gravity-defying growth Resilient to recession. Olam International Ltd (Olam) has been delivering consistent revenue and earnings growth since its listing in 2005, and growth momentum is expected to sustain despite the global recession. Management has guided for 16% to 20% topline CAGR and 25% to 30% earnings CAGR over the next three years. These goals are achievable, given that demand for food is relatively inelasticRead MoreA Portable Supply Chain Model of Olam International1303 Words   |  6 PagesTo: Olam International Management Team and Board of Directors From: UBC MBA Core Code 337 Subject: Tough times, tough decisions Word Count of Memo : 984 Olam International is a global success story in the agribusiness industry. The growth in the last 20 years has been very impressive in terms of profits, breath of products and geographies. However, the combination of a global economic slowdown and tighter credit conditions will make it difficult for the company to maintain the same historical growthRead MoreA C3103 Take Home Assignment 21372 Words   |  6 Pagesï » ¿ Olam International: Challenges to Financial Reporting and Disclosure [Document Subtitle] [Author] Major Concerns Raised by Muddy Waters Over Olam’s Financial Reporting Firstly, Olam seemed to have reclassified its derivatives so as to present high financial returns. Olam was guilty of altering the derivative balance by changing from the adoption of Level 2 inputs to using Level 3 inputs to calculate the fair values of its derivatives during the financial year ended 30 June 2011. Olam alsoRead MoreMarketing: OLHAM Ghana1642 Words   |  7 Pages I. Introduction This paper will analyze the company OLAM Ghana a subsidiary of Olam International Limited. Olam Ghana is engaged in export of agricultural commodities including cocoa, cashew, sheanuts and wood products. It also imports and distributes rice, sugar, dairy products, tomato paste and edible oil. (Olam, 2014) 1) Target Market Olam Ghana target total value chain distribution (distributors, wholesalers and retailers). Olam Ghana distribution network covers whole Ghana; however the customersRead MoreProject Proposal Of Cargill Cocoa And Chocolate North America904 Words   |  4 PagesProject Proposal – MIS 600 The business being studied, is that of Cargill Cocoa and Chocolate North America (CCCNA). They are part of Cargill, Inc. an International producer and marketer of food, agricultural, financial and industrial products and services. They are the largest privately-owned company in the world based in Minnetonka, Minnesota. CCCNA partners with Cocoa farmers around the globe to procure, ship, and transform their produce to a wide range of cocoa and chocolate products and applicationsRead MoreThe Podcast For Today Is Sponsored By The Chief Rabbinate Of Israel1317 Words   |  6 Pagesthe Association for Jewish Studies who is answering our questions. We just discussed the key principles and defining characteristics of Judaism. So Ann, what’s the Jewish belief for death and afterlife? Scholar: Jews believe in an afterlife, known as Olam-Haba, meaning the world to come (Rosenblatt). A2: Interesting... If they have a belief of afterlife, then they must have something about the origin of life? So what exactly is their belief on how humans have come to be on this earth? 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