By Sherry Qin
Olam Group’s shares fell sharply early Thursday after the company guided for “materially lower” earnings for its first half year due to higher interest costs and a significantly lower crop yield from its almond orchards in Australia.
Olam’s shares fell as much as 5.7% to 1.32 Singapore dollars (US$1.00), after earlier touching S$1.27, their lowest intraday level since October, according to FactSet. Shares of the Singapore-based company are on track for their biggest one-day loss since May 2012.
The fall in its almond’s crop yield, due to the changes in the weather patterns and lower bee activity during pollination in Australia, was significant and unprecedented, Olam said.
Olam, one of the world’s largest supplier of coffee, cocoa, and nuts, expects to post a net exception one-off, non-recurring charge of about US$83.0 million on a post-tax basis for its first half.
However, the company still expects to remain profitable for its first half and fiscal year 2023.
Write to Sherry Qin at sherry.qin@wsj.com
Read the full article here