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Edible Nuts, Spices and Vegetable Ingredients

The Edible Nuts, Spices and Vegetable Ingredients segment achieved a year-on-year volume growth of 7.8% in 2017.

The increase came mainly from higher volumes in Edible Nuts, particularly cashew, almonds and sesame, as well as spices. The tomato processing industry in the USA continued to suffer from the global supply glut and weak demand necessitating restructuring measures to address cost and product mix issues.

Revenues grew 12.8% mainly on higher volumes, as well as higher almond and cashew prices compared with 2016.

EBITDA grew by 32.1% as Edible Nuts performed strongly in 2017 as compared with 2016 when its contribution was impacted by depressed almond prices.

Invested capital in the segment declined slightly by S$38.8 million as compared with 2016. This was a combination of a decrease in fixed capital on account of the sale of edible nuts farmland assets in the USA and an increase in working capital due to higher prices, especially in cashew and almonds.

EBITDA on average invested capital (EBITDA/IC) for the segment therefore improved from 9.3% in 2016 to 12.1% in 2017.