SINGAPORE – Ofi reported a strong revenue growth of 15.3% led by pricing growth across both segments. EBIT decreased 9.0% against a very strong comparative prior period that benefited from Covid-19 bounce-back; in addition it was adversely impacted by the external events in 2022.
Mitigating actions initiated to counter those are now flowing through. ofi to list on the premium segment of the London Stock Exchange, with a concurrent listing in Singapore after Olam Agri IPO, subject to prevailing market conditions.
ofi is a global leader in ingredients at the forefront of food and beverage consumer trends offering sustainable, natural and plant-based ingredients and solutions for large, attractive and high growth end-use categories.
Revenue grew strongly, up 15.3% to S$16.4 billion led by pricing growth across both segments.
EBIT declined 9.0% to S$746.5 million, compared to a strong prior period. It was adversely impacted by the external events in 2022, in particular the sudden and significant spike in energy costs in H1 2022. In addition, there was an increase in depreciation and amortisation during the year due to recent acquisitions.
The CEO of ofi, A. Shekhar said:
“Overall market conditions in 2022 were challenging. Starting off from a strong performance in 2021, the war in Ukraine led to significant macroeconomic uncertainty in many markets, elevated levels of inflation and difficulties across supply chains.
Energy costs in particular reached record highs, adversely impacting our profitability on pre-sold customer contracts and contributing to the lower EBIT performance in 2022. We have worked tirelessly as an organisation and closely with our customers through the year to rebase the pricing of renewing contracts, which are now flowing through, with the expected lag, across our businesses.
Despite this uncertain macroeconomic backdrop we made good operational and strategic progress. We continue to build momentum throughout the organisation, and we have made significant progress in refocusing our business around the needs of our customers, including a more streamlined and responsive approach to managing our customer relationships across business segments.
In addition, we have added to our digital capabilities and innovation infrastructure, including customer solutions centres, where we work with our customers to co-create innovative new products from our ingredients, delivering exciting and value-added opportunities to them.
Meanwhile, our ability to deliver products that are both sustainable and traceable continues to differentiate our broad portfolio and underpins our strong customer relationships. I would like to thank our employees for their continued hard work and commitment as we embrace this next stage of ofi’s evolution.”
