Value chain review – Supply Chain
The Supply Chain segment recorded a 73.3% volume increase in 2017 as the year saw trading volumes in Grains, Edible Oils, Rice, Dairy, Cotton and Cashew grow significantly compared with 2016.
Revenue was up 44.9% on higher volumes, moderated by lower commodity prices.
EBITDA however declined 10.4% largely because of reduced contribution from Coffee supply chain. Cocoa bean trading and Sugar trading, which did not perform as well as 2016, also contributed to the decline.
Invested capital in the segment was off 2016 levels by a significant S$733.7 million due to positive effects from the working capital optimisation programme and lower prices.
This resulted in an overall lower EBITDA/IC of 7.3% in 2017 compared with 8.8% in 2016.