REG - Dekel Agri-Vision - AGM Statement

Dekel Agri-VisionAnnouncement

26/07/2022 07:00

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RNS Number : 6461T  Dekel Agri-Vision PLC  26 July 2022

Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food Producers

 

26 July 2022

Dekel Agri-Vision Plc ('Dekel' or the 'Company')

AGM Statement

 

Dekel Agri-Vision Plc (AIM: DKL), the West African agriculture company focused
on building a portfolio of sustainable and diversified projects, is holding
its Annual General Meeting ('AGM') later today.  At the meeting, Youval
Rasin, CEO, will make the following statement:

 

"At this years AGM we will table our 31 December 2021 audited annual financial
results which are arguably the strongest to date.  In terms of our palm oil
operation, we achieved record revenue of €37.4m (2020: €22.5m) and record
EBITDA of €5.2m (2020: €1.2m).  This was largely driven by record Crude
Palm Oil ("CPO") production of 39,959tn and record average annual CPO prices
of €868 per tonne.  The cashew processing operation also took significant
strides towards first production which commenced in January 2022.  Whilst the
construction phase was hampered by delays in the supply chain, we are now in
the final stages of ramping up production.  Importantly, we now have two
operational projects in Côte d'Ivoire, producing two commodities, CPO and
cashews, generating two material revenue streams which we expect will provide
a material step up in our Group revenue and profitability in 2023 and beyond.

 

"Bringing the Cashew Operation into production is a major milestone for the
Company on a number of levels.  Not only will it scale up our revenues and
cash flows, but it will also be important in terms of risk management.  By
providing Dekel with exposure to a new commodity and new end markets, the
Company's financial performance will no longer be solely dependent on the palm
oil operation, including the annual peak palm fruit harvest in Côte d'Ivoire
and movements in international CPO pricing benchmarks.

 

"The exposure to one commodity has been evident during the first half of 2022
where we experienced continued record CPO pricing but also the lowest first
half peak harvest period we have seen.  We consider the decrease in fruit to
be seasonal and a normalisation of the fruit level, together with continued
high CPO prices, means the palm oil operation is well placed to continue to
deliver strong results.  Coupled with the first full year of the cashew
operation, this provides the potential for revenue to surpass €50m in 2023
for the first time and the opportunity to deliver record operating profit
results.  We are excited about the prospects of the Group and we look forward
to updating shareholders on our progress."

 

** ENDS **

 

For further information please visit the Company's website at
www.dekelagrivision.com or contact:

Dekel Agri-Vision Plc                     +44 (0) 207 236 1177

 Youval Rasin

 Shai Kol

 Lincoln Moore

 WH Ireland Ltd (Nomad and Joint Broker)   +44 (0) 20 7220 1666

 James Joyce / Ben Good

 Optiva Securities Limited (Joint Broker)  +44 (0) 203 137 1903

 Christian Dennis

 Daniel Ingram

Notes:

 

Dekel Agri-Vision Plc is a multi-project, multi-commodity agriculture company
focused on West Africa.  It has a portfolio of projects in Côte d'Ivoire at
various stages of development: a fully operational palm oil project in
Ayenouan where fruit produced by local smallholders is processed at the
Company's 60,000tpa capacity crude palm oil mill and a cashew processing
project in Tiebissou, which commenced production in early January 2022.

 

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