Confectionery and Beverage Ingredients overview
The Confectionery and Beverage Ingredients segment recorded a 17.6% increase in volumes, driven by increased cocoa and coffee sales.
Segment revenues increased by 19.9% due to higher volumes, as well as an increase in cocoa prices compared to the prior corresponding period.
Segment EBITDA grew by 16.7% with increased contribution from the coffee platform and the ADM Cocoa acquisition, partly offset by a lower contribution from the cocoa supply chain business. The coffee platform performed strongly across the value chain, which included supply chain trading, soluble coffee processing in Vietnam and Spain, and upstream plantations in Brazil, Tanzania and Zambia.
Segment results for 2015 included the contribution from the acquisition of ADM Cocoa for the period from 16 October 2015 to 31 December 2015.
Our invested capital in the segment increased by S$2,468.3 million as compared to 2014, primarily on account of the acquisition of ADM Cocoa. Excluding this investment, the segmental invested capital increased by S$42.4 million due to the increase in fixed capital from investments in cocoa processing in Côte d’Ivoire and investments in upstream coffee plantations. In spite of the growth in EBITDA, the significant increase in average invested capital caused the segment EBITDA/IC to decline from 9.9% in 2014 to 7.2% in 2015.