Financial Statements - Mewah Group

Building Capabilities
Notes to the Financial Statements
For the financial year ended 31 December 2011
34. Segment information
Management has determined the operating segments based on the reports reviewed by the Executive Committee that are
used to make strategic decisions. The Executive Committee comprises the Chief Executive Officer, the Chief Financial Officer,
and the department heads of each business within each segment.
The Executive Committee considers the business from two segments:
(i)
(ii)
The bulk segment which sources, manufactures and sells edible oils and specialty fats and oils in bulk for a variety of end
uses; and
The consumer pack segment which manufactures and sells edible oils and bakery fats to consumers in packaged form.
The Group measures and tracks the profitability in terms of operating margin and earnings before interest, tax, depreciation and
amortisation (“EBITDA”).
Operating margin is calculated as revenue, less cost of sales (excluding depreciation), selling and distribution expenses and
foreign exchange gains/(losses). Operating margin relating to inter-segment sales are reported under the segment where the
final sales to third parties are made.
EBITDA is calculated as operating margin add other income (excluding interest income), less administrative expenses
(excluding depreciation and amortisation) and other operating expenses.
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