GMG Global Ltd : GMG Achieves 15% Growth In Revenue In 4QFY2013 On Higher Sales Tonnage

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GMG achieves 15% growth in revenue in 4QFY2013 on higher sales tonnage

• Sales tonnage grew 32% in 4QFY2013, cushioning the impact of lower natural rubber market prices

• For the full year, revenue hit $1 billion while net attributable profit affected by lower share of profit from associates

• Recommends first and final dividend of 0.1 cent per share

Financial Highlights	4Q13 Ended 31 Dec 13	4Q12 Ended 31 Dec 12	Change	FY2013 Ended 31 Dec 13	FY2012 Ended 31 Dec 12	Change
Financial Highlights	$mil	$mil	%	$mil	$mil	%
Revenue	280.2	243.5	15.1	1,018.0	1,104.3	(7.8)
Gross Profit	27.3	32.4	(15.7)	112.3	137.3	(18.2)
Gross Profit Margin (%)	9.7	13.3		11.1	12.4
Share of profit/(loss) of associates	(7.4)	0.6	NM	0.8	4.1	(80.5)
Net profit attributable to shareholders	(6.9)	5.1	NM	8.7	40.5	(78.4)

Notes: NM - not meaningful

SINGAPORE - 28 February 2014 - Mainboard-listed GMG Global Limited ("GMG" or "the Group"), a vertically-integrated producer of natural rubber engaged in the planting, growing, tapping, processing and marketing of natural rubber, achieved a 15.1% growth in revenue to $280.2 million for the fourth quarter ended 31 December 2013 ("4QFY2013"), compared to $243.5 million the year before ("4QFY2012").

8 Marina View, Asia Square Tower 1, #34-05

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A Growing Natural Rubber Play

Due to the improvement of our production facilities and sufficient materials supply in 4QY2013, our production capacity has also increased. Sales tonnage for the quarter rose 32% to 91,796 tons, from 69,539 tons in 4QFY2012, which mitigated the lower average selling price during the quarter. Average selling price was $3,045 per ton in 4QFY2013 compared to $3,501 in 4QFY2012.
Although sales tonnage for the whole year grew 12.5% to 306,977 tons, the Group recorded
FY2013 full year revenue of $1.0 billion, which was 7.8% lower than that achieved in the preceding financial year ("FY2012") as average selling price of natural rubber fell by 18% to $3,316 per ton.

Operational Highlights	4Q13 Ended 31 Dec 13	4Q12 Ended 31 Dec 12	% change	FY2013 Ended 31 Dec 13	FY2012 Ended 31 Dec 12	% change
Tonnage sold (tons)	91,796	69,539	32.0	306,977	272,942	12.5
Average selling price per ton	$3,045	$3,501	(13.0)	$3,316	$4,046	(18.0)

Correspondingly, the Group turned in a gross profit of $112.3 million in FY2013, an 18.2% decline year-on-year. This translates to a gross profit margin of 11.1%, which remains largely stable as compared to 12.4% achieved in the previous year.
The Group's share of associates' profit fell considerably by 80.5%, from $4.1 million in FY2012 to
$0.8 million in FY2013, mainly due to a fall in contribution from associate company, SIAT SA, in which GMG owns a 35% stake. SIAT SA, which owns and invests in natural rubber and palm oil businesses in Cote d'Ivorie, Ghana, Nigeria and Gabon, their financial performance is impacted by the lower market prices.
Coupled with a 50% fall in interest income to $4 million, and foreign exchange losses, the Group saw a 78.4% decline in GMG's net profit attributable to shareholders to $8.7 million.

8 Marina View, Asia Square Tower 1, #34-05

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A Growing Natural Rubber Play

Mr Yao Xingliang, GMG's Chief Executive Officer said, "While the fall in share of profit from our associate company, SIAT SA, has impacted our bottom-line, we remain positive that the strategic investment in this company bodes well with the Group's long-term growth prospects.
"This past year, the management has continued to strategically integrate and streamline our global operations to achieve greater operational synergies and economies of scale. We believe that these synergistic benefits will flow through to the bottom-line in the coming years."

Strong Financial Position

As at the end of the financial year, the Group maintained a sound and steady financial position with cash and cash equivalents standing at $69.7 million as at 31 December 2013. It's gearing ratio remains low at 0.14 for the same period under review.

Net Asset Value

The Group posted a net asset value per share of 10.93 cents as at 31 December 2013, compared with 10.59 cents as at 31 December 2012.

Dividend

The Directors have recommended a first and final one-tier tax exempt dividend of 0.1 cent per share, to be approved by shareholders at the forthcoming Annual General Meeting.

Business Outlook

The Group's financial performance is greatly dependent on the market price movement of natural rubber. International currencies' fluctuations and any political instability in countries where the Group operates in can also impact both its top and bottom-lines considerably. Barring adverse global developments, the Group expects natural rubber prices to hover around current levels in the first quarter of 2014. Natural rubber market price averaged US$1,933 (S$2,463) per ton in the week preceding the Group's latest financial results announcement.

8 Marina View, Asia Square Tower 1, #34-05

Singapore 018960

A Growing Natural Rubber Play

Mr Yao said, "Rubber prices and demand continue to be volatile. Despite the challenging business environment, GMG remains cautiously optimistic about its performance for the coming year. We also expect near term natural rubber demand from Europe and the United States to stabilise, and our main market, China, to remain buoyant. We will continue to look out for potential growth opportunities that can assist in sustaining our business for the long term."

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ABOUT GMG GLOBAL LIMITED

Listed on the SGX Mainboard, GMG focuses primarily on the production and supply of premium natural rubber products to the European, American and Asian markets. Some of GMG's products include tyre-grade rubber used in the manufacture of vehicle tyres and centrifuged latex and block rubbers of latex used in the manufacture of medical- grade gloves and contraceptives. Our clientele includes some of the world's top tyre manufacturers as well as medical equipment companies.

The Company, its subsidiaries and associates ("the Group") now manages more than 100,000 hectares of rubber plantations located across Africa and Asia; and operates a total of 10 processing plants located in Thailand, Indonesia, Cameroon and Cote d'Ivoire with a total annual capacity of approximately 370,000 tons.

GMG is a subsidiary of China's Sinochem International Corporation ("Sinochem International") which is listed on the Shanghai Stock Exchange. Sinochem International is a diversified international conglomerate which specialises in the trading, manufacturing and transportation of chemicals (including agricultural and horticultural), plastics, and rubber and metallurgy products. Sinochem International is one of the largest sellers of natural rubber in the people's republic of China ("PRC").

For more information please visit GMG's website at: www.gmg.sg