2016 FINANCIAL STATEMENT ANALYSIS

FY2016 Highlights

• Group sales reached US$2.3bn in FY2016, up 4% from prior year on higher USA,
Philippines and
• S&W Asia sales
• The US business accounted for US$1.8bn or almost 80% of total sales
• The Asian business, both packaged and fresh segments, continued to grow with broader
and deeper penetration
• Without one-off items, the Group generated
o EBITDA of US$202.1m, up 38%
o Operating profit of US$128.6m, up 36%
o Net profit of US$19.8m, a turnaround from the loss of US$6.7m in FY2015
• Including one-off items, the Group generated
o EBITDA of US$235.2m, up 172%
o Operating profit of US$161.7m, up 362%
o Net profit of US$51.5m, a turnaround from the loss of US$43.2m in FY2015
• Declared dividend of 1.33 US cents (US$0.0133) per share or 50% payout of FY2016
earnings
• Received Best Managed Board (Gold) Award from the Singapore Corporate Awards
• Won the Best Innovation - Food & Beverage category in the Singapore Business Review
Listed Companies Awards
LIQUIDITY RATIOS

1. Current Ratio = Current Assets ÷ Current Liabilities

= 1145.29 ÷ 1045.88
= 1.095049
Evaluates the ability of a company to pay short-term obligations using current assets
(cash, marketable securities, current receivables, inventory, and prepayments).

2. Acid Test Ratio = ( Current Assets – Inventory ) ÷ Current Liabilities

= ( 1145.29 - 885.01 ) ÷ 1045.88
= 0.248862
Also known as "quick ratio", it measures the ability of a company to pay short-term
obligations using the more liquid types of current assets or "quick assets" (cash,
marketable securities, and current receivables).

3. Cash Ratio = ( Cash + Marketable Securities ) ÷ Current Liabilities

= ( 47.2 + 0 ) ÷ 1045.88
= 0.04512946
Measures the ability of a company to pay its current liabilities using cash and marketable
securities. Marketable securities are short-term debt instruments that are as good as cash.

4. Net Working Capital = Current Assets - Current Liabilities

= 1145.29 - 1045.88
= 99.41

Determines if a company can meet its current obligations with its current assets; and how
much excess or deficiency there is.

ACTIVITY RATIOS

1. Inventory Turnover = Cost of Sales ÷ Average Inventory

= 1788.27 ÷ [(836.58 + 885.01) ÷ 2]
= 2.077463
Represents the number of times inventory is sold and replaced. Take note that some
authors use Sales in lieu of Cost of Sales in the above formula. A high ratio indicates that
the company is efficient in managing its inventories.

2. Average Collection Period = Accounts Receivable ÷ ( Annual Sales ÷ 365)

= 151.3 ÷ (2274.09 ÷ 365)
= 24.28422
Evaluates credit and collection policies

3. Total Asset Turnover = Net Sales ÷ Total Assets

= 2274.09 ÷ 2706.39
= 0.840267
 Measures overall efficiency of a company in generating sales using its assets. The
formula is similar to ROA, except that net sales is used instead of net income.

DEBT RATIOS