News: NAM UPDATE 2-Singapore's Olam Group logs marginal rise in profit despite higher costs

(Adds details on outlook in paragraph 2, context on IPOs in paragraphs 5-9)

Aug 14 (Reuters) - Singapore's Olam Group OLAG.SI on Wednesday posted a slight increase in its first-half profit attributable, as improved performance in its agricultural products and food ingredients business was dented by higher financing costs.

Despite challenges, Olam expects inflationary pressure to ease in the second half of the year, anticipating that high and volatile prices for key commodities such as cocoa and coffee will stabilise.

The company said its net finance costs "increased sharply" primarily due to higher working capital needs, caused by record-high prices for commodities such as cocoa and coffee, together with rising benchmark interest rates.

Finance costs for the global food trader grew by 36% to S$824.6 million ($625.9 million) in the first half.

Olam, which is in the midst of a bidding battle with Dutch rival Louis Dreyfus for the control of Australia's Namoi Cotton (NAM) , reaffirmed its commitment to the planned listing of its food ingredients and agricultural products unit.

In February, the company said the agricultural unit's listing in Saudi Arabia, initially slated for the first half of 2024, would be delayed.

Similarly, Olam Food Ingredients' (ofi) planned dual listing in London and Singapore, originally scheduled for the second quarter of 2022, was pushed back.

"We continue to evaluate all internal and external factors that would underpin the success of the proposed IPOs of ofi and Olam Agri, while exploring all other strategic options,” said Olam CEO Sunny Verghese.

Earlier this month, the Wall Street Journal reported on a potential sale of Olam's agricultural products business, citing people familiar with the matter, though Olam did not respond to a Reuters request for comment on that.

Olam, among the world's biggest agricultural commodity traders, posted profit attributable of S$48.03 million for the six months ended June 30, compared with S$47.96 million a year ago.

It declared an interim dividend of 3 Singapore cents, in line with the year earlier.

($1 = 1.3174 Singapore dollars)