REG - Dekel Agri-Vision - Interim Results and Investor Presentation
22/09/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220922:nRSV2222Aa&default-theme=true
RNS Number : 2222A Dekel Agri-Vision PLC 22 September 2022
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food Producers
Dekel Agri-Vision Plc
('Dekel', the 'Company' or the 'Group')
Interim Results and Investor Presentation
Dekel Agri-Vision Plc (AIM: DKL), the West African agribusiness company
focused on building a portfolio of sustainable and diversified projects, is
pleased is to announce its interim results for the six months ended 30 June
2022.
The Company will be hosting an investor presentation in the form of a Q&A
session at 12.30 p.m. UK time on 28 September 2022. The call will be hosted
by Lincoln Moore (Executive Director), Youval Rasin (CEO) and Shai Kol (Deputy
CEO and CFO), who will discuss the interim results and provide an update on
activity across its portfolio of projects. Further information about the call
can be found at the end of this announcement.
Key Highlights
Palm Oil Operation
· Record EBITDA and record Net Profit after Tax delivered from the
Ayenouan palm oil plant in Côte d'Ivoire (the 'Palm Oil Operation') primarily
driven by record Crude Palm Oil ('CPO') and Palm Kernel Oil ('PKO') pricing
and an improved extraction rate, offsetting much lower than typical high
season production volumes:
o H1 2022 revenue of €19.7m, a 9.2% decrease from €21.7m in H1 2021 -
includes sales of CPO, Palm Kernel Oil ('PKO'), Palm Kernel Cake ('PKC') and
Nursery Plants
o H1 2022 gross margin of 25.4% compared to 22.6% in H1 2021
o Record H1 EBITDA of €4.2m, an increase of 7.7% from €3.9m in H1 2021
o Record H1 net profit after tax of €2.5m, a 25.0% rise from €2.0m in H1
2021
Cashew Operation
· The Company's cashew processing plant at Tiebissou in Côte
d'Ivoire (the 'Cashew Operation') recorded a net loss of €0.2m, a period in
which operations are in the late stages of completing full commissioning. The
Company will provide further updates in respect of the commissioning process
as appropriate.
*Cashew pilot production commenced in early January 2022 with full
commissioning to be completed in early Q4 2022
Financial Highlights
Year ended 31 December 2022 2021 % change
Palm Oil Operation
Revenue €19.7m €21.7m (9.2%)
Gross Margin €5.0m €4.9m 2.0%
Gross Margin % 25.4% 22.6% 12.4%
G&A (€1.5m) (€1.7m) (11.8%)
EBITDA €4.2m €3.9m 7.7%
Net profit / (loss) after tax €2.5m €2.0m 25.0%
Cashew Operation
Net Loss* (€0.2m) Nil
Dekel Group Net profit / (loss) after tax €2.3m €2.0m 15.0%
Operational Highlights - Palm Oil Operation
· CPO Production: 36.3% decrease in CPO production to 16,893 tonnes
in H1 2022 compared to H1 2021
o The typical high season, which normally takes place from February to May,
was at historically low levels
o CPO extraction rate in H1 2022 increased to 22.4% (H1 2021: 21.4%),
partially offsetting 39% lower Fresh Fruit Bunch ('FFB') quantities compared
to H1 2021
· CPO Sales: 31.4% fall in CPO sales to 16,996 tonnes in H1 2022 (H1
2021: 24,784 tonnes) largely due to the lower CPO production
· CPO Prices: 24.0% increase in average realised CPO prices to a
record level of €1,013 per tonne in H1 2022 compared to H1 2021
o International CPO prices have steadied but continue to trade at multi-year
highs of above €1,000 per tonne
· PKO Production: H1 2022 PKO production 25.2% lower than H1 2021 due
to lower FFB volumes
· PKO Prices: 83.6% higher average realised PKO prices in H1 2022
(€1,454) than H1 2021 (€792), which is a record half-year average price
achieved
Operational Highlights - Cashew Operation
· The Cashew Operation commenced pilot production in early 2022
· Delays in final key equipment items have stalled the ramp-up of
production; however, with all key equipment now on site, we expect to see a
material increase in operating capacity shortly and the Company will provide
further updates as appropriate
Lincoln Moore, Dekel's Executive Director, said: "To deliver record EBITDA
from the Palm Oil Operation despite the unprecedented low high season
production period was an excellent outcome. With CPO prices continuing to
trade at long term highs, the Company is well positioned to grow sales in H1
2023 should production volumes return to historical levels.
"The Cashew Operation is now closing in on the completion of full
commissioning and is well placed to become a significant contributor to the
Group in 2023. With reasons to be optimistic about the performance of both the
Palm Oil Operation and the Cashew Operation, we are excited about the
potential to grow the Company's sales and financial performance in the
future."
Conference Call
Dekel Agri-Vision Plc is pleased to announce that Lincoln Moore, Youval Rasin
and Shai Kol will provide a live presentation in the form of a Q&A
relating to interim results for the six months ended 30 June 2022 via the
Investor Meet Company platform on 28 Sep 2022 at 12.30 p.m. BST.
The presentation is open to all existing and potential shareholders. Questions
can be submitted via your Investor Meet Company dashboard up until 9.00 a.m.
BST the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet Dekel
Agri-Vision Plc via:
https://www.investormeetcompany.com/dekel-agri-vision-plc/register-investor
(https://www.investormeetcompany.com/dekel-agri-vision-plc/register-investor)
Investors who already follow Dekel Agri-Vision Plc on the Investor Meet
Company platform will automatically be invited.
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
** ENDS **
For further information please visit the Company's website
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.
CHAIRMAN'S STATEMENT
H1 2022 saw CPO prices reach record highs which greatly assisted the H1 2022
financial outcomes during an unusually low high season production period. In
addition, strong mill operational performance which saw a material improvement
in CPO extraction rates and well controlled overhead costs, despite global
inflation, contributed to the solid platform to enable the Palm Oil Operation
to deliver a record net profit after tax.
The Cashew Operation took significant strides during H1 2022 to full
production despite post Covid-19 supply chain disruptions impacting our
supplier delivery timetables. With all key equipment now on site and the final
commissioning phase well advanced, we believe we have passed the most
challenging stage of delivering the Cashew Operation towards its full capacity
and we are well placed to deliver our objective of processing 10,000tn of Raw
Cashew Nuts ('RCN') in 2023.
Palm Oil Operation
January 2022 production volumes started reasonably well following on from a
record production period in H2 2021. However, the typical high season which
peaks from February through May did not eventuate as normal leading to, by
far, the weakest production high season the Company has seen since the Palm
Oil Operation commenced in 2014. This low production was experienced
region-wide; however, there is expectation among local experts that the
variation is short-term and we should see a rebound in volumes. As we head
towards the back end of September, we are seeing some improvements in volumes
but it is difficult to accurately predict short-term volume variations. What
we can do is focus on things we can control and we are currently undertaking a
full review of our milling operations to ensure we are ready when volumes
increase, so that the Company can take advantage of a supportive pricing
environment.
Record CPO and PKO prices were achieved in H1 2022 and prices currently remain
close to all-time highs. Medium-term, we continue to be bullish on CPO prices
and, should short-term prices remain in the €900-1,000tn range and volumes
normalise to historical levels, the Directors believe the Palm Oil Operation
performance can exceed the outcomes of H1 2021 and H1 2022.
Cashew Operation
The Cashew Operation has a stated objective to process 10,000tn of RCN in
2023. The Directors' view remains unchanged in that the Cashew Operation could
in time potentially exceed the Palm Oil Operation in terms of profit
contribution to the Group. The Cashew project is being developed in such a way
that capacity can be increased significantly in short order. With a nameplate
capacity of 15,000 tonnes per annum ('tpa'), production at the plant can be
ramped up by 50% at no extra cost by simply increasing the number of shifts
from two to three per day. From 15,000tpa and at a capex cost of €5-6
million, the mill's capacity can be doubled to 30,000tpa, which the Directors
estimate could generate revenues in the region of approximately €40 million
per annum based on current prices.
Other Projects
Whilst we have further expansion plans, including the processing of a third
commodity in addition to clean energy aspirations, these projects are on hold
as we focus on the execution of the Cashew Operation which we believe will
play a key role in enhancing the Group's financial outcomes in 2023.
Group Financial
A summary of the financial performance for H1 2022, in addition to the
comparatives for the previous 5 years, is outlined in the table below.
H1 2022 H1 2021 H1 2020 H1 2019 H1 2018 H1 2017
CPO production (tonnes) 16,893 26,515 23,882 28,934 22,242 26,947
Average CPO price per tonne €1,013 €817 €602 €505 €549 €707
Total Revenue (all products) €19.7m €21.7m €15.4m €14.6m €14.1m €19.6m
Gross Margin €5.0m €4.9m €2.6m €2.3m €2.1m €5.0m
Gross Margin % 25.4% 22.6% 16.9% 15.8% 14.9% 25.5%
Overheads (€1.7m) (€1.7m) (€1.4m) (€1.5m) (€1.6m) (€1.8m)
EBITDA €4.0m €3.9m €1.9m €1.4m €1.1m €3.7m
Net Profit / (Loss) After Tax €2.3m €2.0m €0.5m (€0.1m) (€0.5m) €2.4m
Dekel achieved record H1 2022 EBITDA of €4.0m and net profit after tax of
€2.3m. This was driven by record CPO and PKO prices and a 1 percentage point
improvement in CPO extraction rates to 22.4%. This drove an improvement in the
H1 2022 Gross Margin percentage to 25.4% (H1 2022: 22.6%). H1 2022 overheads
were well controlled during a period of ongoing inflation, remaining flat at
€1.7m (H1 2021: €1.7m).
H1 Operating Cashflow of €4.8m (H1 2021 €2.4m outflow) was reflective of
the solid operating performance of the Palm Oil Operation. Given the Cashew
Operation has not completed full commissioning, ongoing capital expenditure
and the capitalisation of the commissioning costs resulted in a €2.6m
outflow and a further €2.3m was utilised for loan repayments. The final
drawdown of approximately €9.2m from the Company's existing approximately
€15.2m seven-year bond facility has further strengthened Dekel's cash
position and provided key working capital to support the ramp up of the Cashew
Operation. Our consistently stated two to three year strategy remains
unchanged in terms of "utilising the principal grace periods of the bond
facility to ensure we are well funded internally while we build our cash base
from the material uplift in operating cash flow expected as the Palm Oil
Operation and Cashew Operation work in tandem. Dekel will then have
optionality to either pay down debt or access lower cost financing to fund
future growth plans and, at the appropriate time, look to recommence a
dividend programme, thereby providing shareholders with a yield as well as
capital growth."
Outlook
The Company has been able to deliver a record H1 2022 financial performance
whilst weathering the challenges of unprecedented low volumes in the Palm Oil
Operation and delays with ramp up in the capacity of the Cashew Operation.
Whilst it will be challenging to replicate in the second half of the year the
record Palm Oil Operation results achieved in H1 2022 based on current
volumes, we have an excellent platform to deliver sustained profitability from
the Palm Oil Operation in 2023 as well see the Cashew Operation transition to
a consistent and long-term financial contributor to Group performance. The
Directors remain optimistic about the next 6-12 months.
I would like to thank the Board, Management, our employees and advisers for
their support and hard work over the course of the year.
Andrew Tillery
Non-Executive Chairman
Date: 22
September 2022
DEKEL AGRI-VISION PLC.
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF 30 JUNE 2022
EUROS IN THOUSANDS
UNAUDITED
INDEX
Page
Interim Condensed Consolidated Statements of Financial Position 2 - 3
Interim Condensed Consolidated Statements of Comprehensive Income 4
Interim Condensed Consolidated Statements of Changes in Equity 5 - 6
Interim Condensed Consolidated Statements of Cash Flows 7 - 8
Notes to the Interim Condensed Consolidated Financial Statements 9 - 14
- - - - - - - - - - -
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
30 June 31 December
2022 2021
Unaudited Audited
Euros in thousands
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 756 1,595
Trade receivables - 1,487
Inventory 3,370 3,240
Deposits in banks 357 595
Accounts and other receivables 224 365
Total current assets 4,707 7,282
NON-CURRENT ASSETS:
Deposits in banks 517 501
Property and equipment, net 45,786 43,892
Total non-current assets 46,303 44,393
Total assets 51,010 51,675
The accompanying notes are an integral part of the consolidated financial
statements.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
30 June 31 December
2022 2021
Unaudited Audited
Euros in thousands
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term loans and current maturities of long-term loans 2,957 5,431
Trade payables 786 1,374
Advance payments from customers 834 108
Loan from non-controlling interest 915 915
Other accounts payable and accrued expenses 2,574 2,646
Total current liabilities 8,066 10,474
NON-CURRENT LIABILITIES:
Long-term lease liabilities 39 169
Accrued severance pay, net 179 135
Long-term loans 24,059 24,562
Total non-current liabilities 24,277 24,866
Total liabilities 32,343 35,340
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital 170 170
Additional paid-in capital 40,034 39,985
Accumulated deficit (15,633) (17,971)
Capital reserve 2,532 2,532
Capital reserve from transactions with non-controlling interests (8,710) (8,710)
18,393 16,006
Non-controlling interests 274 329
Total equity 18,667 16,335
Total liabilities and equity 51,010 51,675
The accompanying notes are an integral part of the interim consolidated
financial statements.
22 September, 2022
Date of approval of the financial statements Youval Rasin Yehoshua Shai Kol Director and Chief Finance Officer Lincoln John Moore Executive Director
Director and Chief Executive Officer
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six months ended Year ended
30 June 31 December
2022 2021 2021
Unaudited Audited
Euros in thousands
(except per share amounts)
Revenues 19,661 21,691 37,391
Cost of revenues (14,651) (16,841) 30,880
Gross profit 5,010 4,850 6,511
General and administrative 1,650 1,745 3,869
Operating profit (loss) 3,360 3,105 2,642
Finance cost 881 1,069 1,726
Income (loss) before taxes on income 2,479 2,036 916
Taxes on income 196 15 275
Net income and total comprehensive income 2,283 2,021 641
Attributed to :
Equity holders of the Company 2,338 2,072 757
Non-controlling interest (55) (51) (116)
2,283 2,021 641
Income per share attributable to equity holders of the Company (in Euros):
Basic and diluted income per share 0.00 0.00 0.00
Weighted average number of shares used in computing basic and diluted income 537,676,970 520,302,349 528,368,244
per share
The accompanying notes are an integral part of the interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the Company
Share Additional paid-in capital Accumulated deficit Capital reserve Capital reserve from transactions with non-controlling interests Total Non - controlling interest Total
capital equity
Euros in thousands
Balance as of 1 January 2022 (audited) 170 39,985 (17,971) 2,532 (8,710) 16,006 329 16,335
Net income and total comprehensive income - - 2,338 - - 2,338 (55) 2,283
Issuance of shares *) 49 49 49
Balance as of 30 June 2022 (unaudited) 170 40,034 (15,633) 2,532 (8,710) 18,393 274 18,667
Attributable to equity holders of the Company
Share Additional paid-in capital Accumulated deficit Capital reserve Capital reserve from transactions with non-controlling interests Total Non - controlling interest Total
capital equity
Euros in thousands
Balance as of 1 January 2021 (audited) 142 35,570 (18,728) 2,532 (7,754) 11,762 700 12,462
Net income and total comprehensive income - - 2,072 - - 2,072 (51) 2,021
Issuance of shares 1 3,743 - - 3,744 - 3,744
Acquisition of non-controlling interests - 404 - - (957) (553) (254) (807)
Contribution to equity by non-controlling interest - - - - - - 116 116
Share-based compensation - 147 - - - 147 - 147
Balance as of 30 June 2021 (unaudited) 143 39,864 (16,656) 2,532 (8,711) 17,172 511 17,683
The accompanying notes are an integral part of the interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the Company
Share Additional paid-in capital Accumulated deficit Capital reserve Capital reserve from transactions with non-controlling interests Total Non - controlling interest Total
capital equity
Euros in thousands
Balance as of 1 January 2021 (audited) 142 35,570 (18,728) 2,532 (7,754) 11,762 700 12,462
Net income and total comprehensive income - - 757 - - 757 (116) 641
Issuance of shares 26 3,720 - - - 3,745 - 3,745
Acquisition of non-controlling interests 2 401 - - (956) (553) (255) (808)
Share-based compensation - 295 - - - 295 295
Balance as of 31 December 2021 (audited) 170 39,985 (17,971) 2,532 (8,710) 16,006 329 16,335
The accompanying notes are an integral part of the interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended Year ended
30 June 31 December
2022 2021 2021
Unaudited Audited
Euros in thousands
Cash flows from operating activities:
Net income 2,283 2,021 641
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Adjustments to the profit or loss items:
Depreciation 679 747 1,888
Share-based compensation - 147 295
Accrued interest on long-term loans and non-current liabilities 898 891 1,188
Change in employee benefit liabilities, net 44 117 (103)
Changes in asset and liability items:
Increase in inventories (130) (3,040) (1,957)
Decrease (increase) in accounts and other receivables 1,628 (432) (1,296)
Decrease (increase) in bank deposit 222 (470) -
Increase (decrease) in trade payables (567) 301 498
Increase (decrease) in advance from customers 726 (1,971) (1,863)
Increase (decrease) in accrued expenses and other accounts payable (72) (57) 859
3,428 (3,767) (491)
Cash paid during the period for:
Income taxes - - (264)
Interest (898) (693) (1,188)
(898) (693) (1,452)
Net cash provided by (used in) operating activities 4,813 (2,439) (1,302)
The accompanying notes are an integral part of the interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended Year ended
30 June 31 December
2022 2021 2021
Unaudited Audited
Euros in thousands
Cash flows from investing activities:
Increase in deposits - - (814)
Purchase of property and equipment (2,573) (3,156) (4,568)
Net cash provided by (used in) investing activities (2,573) (3,156) (5,382)
Cash flows from financing activities:
Issue of shares (offering net proceeds) - 3,726 3,726
Cash paid on acquisition of non-controlling interests - - (806)
Long-term lease (130) (6) (23)
Loan to subsidiary by non-controlling interests - 765 915
Receipt (payment) of short-term loans, net (2,279) (670) 605
Receipt of long-term loans 520 5,991 5,997
Repayment of long-term loans (1,218) (1,265) (2,338)
Net cash provided by (used in) financing activities (3,107) 7,734 8,077
Increase in cash and cash equivalents (867) 2,139 1,393
Cash and cash equivalents at beginning of period 1,595 202 202
Cash and cash equivalents at end of period 756 2,341 1,595
Supplemental disclosure of non-cash activities:
Issuance of shares in consideration for investment in Pearlside 403 404 403
The accompanying notes are an integral part of the interim consolidated
financial statements.
NOTE 1:- GENERAL
a. These financial statements have been prepared in a condensed
format as of June 30, 2022, and for the six months then ended ("interim
consolidated financial statements"). These financial statements should be read
in conjunction with the Company's annual financial statements as of December
31, 2021 and for the year then ended and accompanying notes ("annual
consolidated financial statements").
b. Dekel Agri-Vision PLC (the "Company") is a public limited company
incorporated in Cyprus on 24 October 2007. The Company's Ordinary shares are
admitted for trading on the AIM, a market operated by the London Stock
Exchange. The Company is engaged through its subsidiaries in developing and
cultivating palm oil plantations in Cote d'Ivoire for the purpose of producing
and marketing Crude Palm Oil ("CPO"). The Company's registered office is in
Limassol, Cyprus.
c. CS DekelOil Siva Ltd. ("DekelOil Siva") a company incorporated
in Cyprus, is a wholly-owned subsidiary of the Company. DekelOil CI SA, a
subsidiary in Cote d'Ivoire currently held 99.85% by DekelOil Siva, is engaged
in developing and cultivating palm oil plantations for the purpose of
producing and marketing CPO. DekelOil CI SA constructed and is currently
operating its first palm oil mill.
d. Pearlside Holdings Ltd. ("Pearlside") a company incorporated in
Cyprus, is a subsidiary of the Company since December 2020. Pearlside has a
wholly-owned subsidiary in Cote d'Ivoire, Capro CI SA ("Capro"). Capro is
currently constructing a Raw Cashew Nut (RCN) processing plant in Cote
d'Ivoire near the village of Tiebissou.
e. DekelOil Consulting Ltd. a company located in Israel and a
wholly-owned subsidiary of DekelOil Siva and is engaged in providing services
to the Company and its subsidiaries.
f. The outbreak of Coronavirus, a virus causing potentially deadly
respiratory tract infections originating in China and spreading in various
jurisdictions, had a significant effect on the global economic conditions and
CPO prices but it had no significant effect on the Company's operations during
H1 2022. The outbreak of Coronavirus may resume its negative affect on
economic conditions regionally as well as globally, disrupt operations
situated in countries particularly exposed to the contagion, affect the
Company's customers and suppliers or business practices previously applied by
those entities, or otherwise impact the Company's activities. Governments in
affected countries are imposing travel bans, quarantines and other emergency
public safety measures. Those measures, though apparently temporary in nature,
may continue and increase depending on developments in the virus' outbreak.
The ultimate severity of the Coronavirus outbreak is uncertain at this time
and therefore the Company cannot reasonably estimate the impact it may have on
its end markets and its future revenues, profitability, liquidity and
financial position.
g. Working capital deficiency.
The Group generated a record positive cash flow from
operations of €4.8 million, representing a material increase in relation to
the negative cash flow of (€2.4) million in H1 2021. This cash flow enabled
the Group to continue its investments in the development of its RCN processing
plant. As of 30 June 2022, the Group has a working capital deficiency of
€3.3 million similar to the 31 December 2021 amount. Post 30 June 2022, the
Group also completed a final drawdown from the bond facility which included a
three year principal grace period which has further bolstered the Group cash
position (see also Note 4). The Group has prepared detailed forecasted cash
flows through the end of 2023, which indicate that the Group should have
positive cash flows from its operations. However, the operations of the Group
are subject to various market conditions, including quantity and quality of
fruit harvests and market prices that are not under the Group's control that
could have an adverse effect on the Group's future cash flows.
Based on the above, Company management believes it will have sufficient funds
necessary to continue its operations and to meet its obligations as they
become due for at least a period of twelve months from the date of approval of
the financial statements.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES
a. Basis of preparation of the interim consolidated financial
statements:
The interim consolidated financial statements have been
prepared in accordance with IAS 34, "Interim Financial Reporting".
The significant accounting policies applied in the preparation of the
interim consolidated financial statements are consistent with those followed
in the preparation of the annual consolidated financial statements for the
year ended 31 December, 2021, except as described below.
b. Fair value of financial instruments:
The carrying amounts of the Company's financial instruments
approximate their fair value.
c. Initial adoption of amendments to existing financial reporting
and accounting standards:
1. Amendment to IAS 16, "Property, Plant and Equipment":
In May 2020, the IASB issued an amendment to IAS 16, "Property, Plant and
Equipment" ("the Amendment"). The Amendment prohibits a company from deducting
from the cost of property, plant and equipment ("PP&E") consideration
received from the sales of items produced while the company is preparing the
asset for its intended use. Instead, the company should recognize such
consideration and related costs in profit or loss.
The Amendment is effective for annual reporting periods beginning on or after
January 1, 2022. The Amendment is to be applied retrospectively, but only to
items of PP&E made available for use on or after the beginning of the
earliest period presented in the financial statements in which the company
first applies the Amendment.
The cumulative effect of initially applying the Amendment is recognized as an
adjustment to the opening balance of retained earnings at the beginning of the
earliest period presented.
The application of the Amendment did not have a material impact on the
Company's interim financial statements.
NOTE 3:- OPERATING SEGMENTS
a. General:
The operating segments are identified on the basis of information that is
reviewed by the Company's management to make decisions about resources to be
allocated and assess its performance. Accordingly, for management purposes,
the Group is organised into two operating segments based on the two business
units the Group has. The two business units are incorporated under two
separate subsidiaries of the Company, the CPO production unit is incorporated
under CS DekelOil Siva Ltd and its subsidiary and the RCN processing plant
under construction is incorporated under Pearlside Holdings Ltd and its
subsidiary.
Segment performance (segment income (loss)) and the segment assets and
liabilities are derived from the financial statements of each separate group
of entities as described above. Unallocated items are mainly the Group's
headquarter costs, finance expenses and taxes on income.
b. Reporting operating segments:
Crude Palm Oil Raw Cashew Nut Total
Six months ended 30 June 2022 (unaudited):
Revenues-External customers 19,661 - 19,661
Segment profit (loss) 3,742 (188) 3,554
Unallocated corporate expenses (195)
Finance cost (880)
Profit before taxes on income 2,479
Depreciation and amortization (679) - (679)
Six months ended 30 June 2021 (unaudited):
Revenues-External customers 21,691 - 21,691
Segment profit (loss) 3,582 (160) 3,422
Unallocated corporate expenses (317)
Finance cost (1,069)
Profit before taxes on income (2,036)
Depreciation and amortization (747) - (747)
Euros in thousands
Year ended 31 December 2021(audited):
Revenues-External customers 37,391 - 37,391
Segment profit (loss) 3,830 (391) 3,439
Unallocated corporate expenses (797)
Finance cost (1,809)
Profit before taxes on income 833
Depreciation and amortization (1,888) - (1,888)
Crude Palm Oil Raw Cashew Nut Total
Euros in thousands
As of 30 June 2022 (unaudited):
Segment assets 30,220 20,790 51,010
Segment liabilities 21,872 10,491 32,343
As of 31 December 2021 (audited):
Segment assets 33,393 18,199 51,592
Segment liabilities 24,180 10,943 35,123
NOTE 4:- SUBSEQUENT EVENTS
On July 25 the Company completed its final drawdown of
approximately €9.2 million (6 million FCFA) from the approximately €15.2
million (10 million FCFA) seven-year bond facility. The final bond drawdown
has a fixed interest rate of 7.25%, and it has three years grace on principal
repayment.
The initial use of the funds was to partially repay the
AgDevCo Limited ("AgDevCo") loan and a first payment of €3.6 million has
been made to AgDevCo reducing the loan by 50% from approximately €7.2
million to approximately €3.6 million.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR PPUBWBUPPGRGRecent news on Dekel Agri-Vision
See all newsREG - Dekel Agri-Vision - Q1 2025 Palm Oil and Cashew Production Update
AnnouncementREG - Dekel Agri-Vision - Holding(s) in Company
AnnouncementREG - AIM - AIM Notice - 12/03/2025
AnnouncementREG - Dekel Agri-Vision - February Palm Oil & Cashew Operation Update & TVR
AnnouncementREG - Dekel Agri-Vision - January Palm Oil & Cashew Operation Update
Announcement