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Financial Information

Business Segmentation and Reporting

We organise the products and services which we supply into five reporting segments – Edible Nuts, Spices & Beans; Confectionery & Beverage Ingredients; Food Staples & Packaged Foods; Industrial Raw Materials and Commodity Financial Services. The table below shows the mix of platforms within each segment.

Business Segment Products
Edible Nuts, Spices & Beans Edible Nuts
Spices & Vegetable Ingredients
Confectionery & Beverage Ingredients Cocoa
Food Staples & Packaged Foods Dairy
Grains & Oilseeds
Sugar & Natural Sweeteners
Packaged Foods
Industrial Raw Materials Cotton
Wood Products
Ag Logistics & Infrastructure
Commodity Financial Services Commodity Financial Services

Additional information is provided on the progress we made on the various value chain initiatives across three value chain segments as follows:

Value Chain Segment Value Chain Activity
Supply Chain & Value Added Services (VAS) This segment includes all activities relating to Origination, Sourcing, Primary Processing, Logistics, Trading and Marketing (including VAS) and Risk Management of agricultural products and the CFS business.
Upstream This segment includes all activities relating to Farming (annual row crops), Plantations (perennial tree crops), Dairy Farming and Forest Concessions.
Midstream &      Downstream This segment includes all activities relating to Secondary Processing, Contract Manufacturing, Branded Distribution, Private Label activities and SEZ.


One of the key drivers of our profitability is the volume of products supplied. Given our integration and end-to-end supply chain capabilities, we seek to match the supply of our products with demand from our customers. The volume of agricultural products we supply is largely within our control and is a function of the extent of our supply chain infrastructure in the origins (producing countries) and the markets (consuming countries). Volumes include proportionate share of volumes from jointly controlled entities and associates.


Production of our agricultural products is seasonal in nature. The seasonality of the products in our portfolio depends on the location of the producing country. The harvesting season for most of the agricultural products for countries situated in the Northern Hemisphere generally falls between October and March. Similarly, countries in the Southern Hemisphere have harvesting seasons between April to September. It is also not unusual to experience both delays and early starts to the harvesting seasons in these segments based on actual weather patterns in that particular year.

In addition to an early or delayed harvesting season, the precise timing and size of arrivals of these products can also vary based on the farmer’s selling decisions, which is mainly a function of his view on prices and his inventory holding capacity. The majority of our Origins are located in the Northern Hemisphere. Consequently, our earnings tend to be relatively higher in the second half of the Financial Year (January to June) compared to the first half (July to December). Based on this seasonality, we expect the phasing of our earnings to be as follows:

Jul – Sep
Oct – Dec
1st Half
Jul – Dec
5 – 10% 25 – 30% 30 – 40%
Jan – Mar
Apr – Jun
2nd Half
Jan – Jun
35 – 40% 25 – 30% 60 – 70%

Investment Performance

To provide more information on investment performance, particularly on the profitability of the Upstream and Mid/Downstream value chain segments, two new performance metrics were introduced in FY2013, namely Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and EBITDA on average invested capital (EBITDA/IC) across business and value chain segments, as these provide a fair indication of operating cash flow and return on invested capital respectively.