Noble Group, a Hong Kong-based grain and energy product supply chain manager, reported a 48 per cent drop in net profit last year as its agriculture business sailed into the red on a drop in sugar prices and low crushing margins on oilseeds in South America.
The net profit of the Singapore-listed company fell to US$243 million from US$471 million in 2012. Sales rose 4 per cent to US$97.9 billion.
The agriculture division, including its grains and oilseeds and sugar mill businesses, reported operating losses of US$83 million, compared with a profit of US$180 million in 2012.
Revenue from agriculture grew marginally to US$15.5 billion as the company processed 46.3 million tonnes of grains and sugar, compared with 44.3 million tonnes previously.
Heavy rains in South America affected the cane's sugar content. As a result, production at Noble's sugar mill facilities in Brazil fell short of its target.
