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Value chain review – Upstream

The Upstream segment registered a year-on-year volume growth of 28.3% in 2017 mainly coming from Almonds with increased acreage and better yields achieved in Dairy and Grains farming in Russia as well as in Rice farming in Nigeria.

Revenue grew by a significant 113.8% on higher volumes and higher Almond prices. EBITDA also showed a substantial growth of 137.8% on account of stronger almond performance, backed by a positive EBITDA achieved by Rusmolco for its Dairy and Grains farming operations, and by Rice farming in Nigeria.

Invested capital in the segment was up by S$151.0 million from the end of last year, mainly on the net increase in fixed capital, which grew as continued investments in Palm and Rubber plantations was offset by the sale of Edible Nuts farmland assets in the USA. Meanwhile, the working capital optimisation initiatives helped reduce working capital deployed.

As a result of a strong improvement in EBITDA, EBITDA/ IC increased from 2.3% in 2016 to 4.9% in 2017.