Noble Group boosted by rising commodity prices

12 August 2011

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12 August 2011 | Angeline Albert

Agricultural supply chain management business NobleGroup has reported record revenue for the first six months of 2011.

Noble, which produces and delivers raw materials as well as managing the supply chain of these commodities for other firms, reported an increase of 63 per cent in revenue to US$40 billion (£24.5 billion) for the first six months of 2011 to 30 June, when compared to the same period last year. Operating income from supply chain operations for the six-month period was US$894.7 million (£549 million), an increase of 38 per cent over the same period in 2010.

Rising commodity prices and higher sales, boosted by increased production capacity were behind the growth in revenue.

However, income was affected by drought in Brazil, which lowered the amount it could crush at its sugar mills. Poor weather conditions also led to a delay in planting, which also affected crushing volumes. In June the company purchased two additional sugar and ethanol mills, doubling its crushing capacity in the country.

CEO Ricardo Leiman said in a statement: “We are delighted that we are able to report record first-half revenue, volume and operating income in a difficult and volatile business environment. Our new businesses and acquisitions are starting to illustrate their longer-term potential, broadening and deepening the group’s capabilities.”

Revenue at the company’s cocoa division grew by 33 per cent when compared to the previous year, primarily due to the rising price of the commodity. An embargo on exports of cocoa from the Ivory Coast was removed in April, which benefited the business.

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