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.
The company said the continued decline in the price of sugar would force more mills to close this year.
