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Value chain review and analysis

As at end‑December 2015, more than 50% of the capital invested in Upstream and Mid/Downstream segments were gestating or partly contributing. There is significant growth potential from investments already made that are gestating  or partly contributing.

Sales volume (‘000 MT) Revenue EBITDA Invested capital (IC) EBITDA/IC
S$ million 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Upstream 433.2 415.7 1,167.2 1,033.7 192.5 182.5 3,130.4 2,826.5 6.5% 6.6%
Supply chain 9,370.2 11,558.6 13,080.4 14,959.6 599.9 608.8 4,851.9 4,936.4  12.3% 12.5%
Mid/Downstream 2,703.3 2,047.6 4,805.0 3,778.7 330.4 315.3 6,448.0 3,793.9 6.5% 8.2%
Total 12,506.7 14,021.9 19,052.6 19,771.9 1,122.8 1,106.6 14,430.3 11,556.8 8.6%  9.6%

Note: IC excludes:

  1. Gabon Fertiliser Project (31 December 2015: $209.8 million, 31 December 2014: S$182.4 million)
  2. Long-term Investment (31 December 2015: S$269.2 million, 31 December 2014: S$334.4 million)

Gestation Mix


The Upstream segment registered a year‑on‑year volume growth of 4.2%, revenue growth of 12.9% and EBITDA growth of 5.5% in 2015.

The growth in volume was driven by higher production and yields from the rice farm in Nigeria, almond orchards in the USA and Australia and dairy farming in Russia. Revenue growth was primarily on account of higher prices of almonds. The growth in EBITDA was due to increased contribution from almond and coffee plantations and higher contribution from SIFCA. This was partly offset by lower contribution from the dairy farming operations in Uruguay.

Our invested capital in the segment increased by S$303.9 million from 2014, mainly on account of higher fixed capital invested in almond, coffee, palm and rubber plantations and rice farming.

EBITDA/IC declined from 6.6% in 2014 to 6.5% in 2015 due to higher average invested capital. Of the total segment invested capital of S$3.1 billion, S$1.8 billion was partly contributing or gestating. The fully contributing invested capital of S$1.3 billion generated an EBITDA/IC of 13.9%.


Supply chain

The Supply Chain segment recorded a decline in volume by 18.9% due to reduced volume from lower margin or discontinued operations, which was in line with our Strategic Plan objectives. Revenue declined by 12.6% as the reduction in volume was partly offset by higher cocoa prices.

Lower volumes and reduced contribution from sugar and palm trading and the cocoa supply chain business resulted in segment EBITDA declining by 1.5%.

Our invested capital in the segment was reduced by S$84.5 million, despite an increase in fixed capital due to lower average commodity prices. However, EBITDA/IC declined marginally from 12.5% in 2014 to 12.3% in 2015 due to lower EBITDA.

Supply chain charts


Mid/Downstream segment volumes and revenue recorded strong growth of 32.0% and 27.2%, driven by an increase in wheat milling, palm refining and cocoa processing volumes and from the MMI and ADM Cocoa acquisitions.

EBITDA grew by 4.8% due to strong contribution from wheat milling in Africa, soluble coffee processing in Vietnam and Spain, sugar refining in India, Spices and Vegetable Ingredients and peanut businesses in the USA and from the acquisition of ADM Cocoa. This was partly offset by the adverse impact of currency devaluation on our palm refining operations in Mozambique and the Packaged Foods business in Africa
and reduced contribution from the SEZ business.

Our invested capital increased by S$2,654.1 million during the period, mainly due to the MMI and ADM Cocoa acquisitions. EBITDA/IC declined from 8.2% in 2014 to 6.5% in 2015 as there was a significant increase in average invested capital due to the MMI and ADM Cocoa acquisitions.

Of the total segment invested capital of S$6.4 billion, S$3.1 billion was partly contributing. The fully contributing invested capital of S$3.4 billion generated an EBITDA/IC of 10.0%.

Mid downstream charts

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