REG - Dekel Agri-Vision - Q1 2025 Palm Oil and Cashew Production Update

Dekel Agri-VisionAnnouncement

10/04/2025 07:00

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RNS Number : 3550E  Dekel Agri-Vision PLC  10 April 2025

 

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.

 

10 April 2025

 

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

 

Dekel Agri-Vision Plc

('Dekel' or the 'Company')

Q1 2025 Palm Oil and Cashew Production Update

 

Dekel Agri-Vision Plc (AIM: DKL), the West African agriculture company focused
on building a portfolio of sustainable and diversified projects, is pleased to
provide its Q1 2025 production update for the Ayenouan palm oil project in
Côte d'Ivoire ('Palm Oil Operation') and the substantial positive step-change
in the performance of our cashew processing plant at Tiebissou, Côte d'Ivoire
(the 'Cashew Operation').

 

Palm Oil Operation Key Performance Metrics: Q1 2025 vs. Q1 2024

·      Palm Oil Operational Highlights: For Q1 2025, Palm Oil Operation
revenue is expected to exceed Q1 2024 by over 45%, driven by strong Crude Palm
Oil ('CPO') and Palm Kernel Oil ('PKO') pricing, coupled with stable
production volumes.

·      CPO Production: 10,982 tonnes, reflecting a modest decrease of
4.6%.

·      CPO Extraction Rate: Increased by 4.7%, reaching 22.2%, which are
robust levels historically.

·      CPO Sales Volume: Up by 11.0%. Local demand for CPO remains
robust, with local inventory levels remaining relatively tight due to lower
FFB ('Fresh Fruit Bunch') stock levels over the past 6-9 months.

·      CPO Sales Price: Increased by 27.0% to €969 per tonne, driven
by tighter local inventory pushing local prices toward the international CPO
price, which remains near historical highs.

·      PKO Sales Price: A significant 217% increase in sales volumes,
coupled with a 66% surge in PKO sales prices. Local demand for PKO has
improved substantially in recent months, providing strong profit support to
our core CPO sales.

 

                                              Q1-2025   Q1-2024  Change

 FFB processed (tonnes)                       49,512    54,381   -9.0%
 CPO Extraction Rate                          22.2%     21.2%    4.7%
 CPO production (tonnes)                      10,982    11,510   -4.6%
 CPO Sales (tonnes)                           10,343    9,317    11.0%
 Average CPO price per tonne                  €968      €762     27.0%
 Palm Kernel Oil ('PKO') production (tonnes)  674       641      5.1%
 PKO Sales (tonnes)                           615       194      217.0%
 Average PKO price per tonne                  €1,217    €733     66.0%

 

Cashew Operation Key Performance Metrics: Q1 2025 vs. Q1 2024

 

·      Cashew Operational Highlights: As previously guided, the Cashew
Operation has shown improvement in Q1 2025 compared to Q1 2024. Key
operational metrics have increased:

o  RCN ('Raw Cashew Nut') processed increased by 219.6%

o  Cashew production rose by 322%

o  Cashew sales prices climbed by 84.9%

o  These results support our outlook that the Cashew Operation is on track to
achieve its first EBITDA-positive year in 2025.

·      RCN Purchasing: The RCN buying season commenced in February, as
previously announced. We have already secured a significant portion of the
initial 2,500-tonne batch, with further procurement scheduled in the coming
months.

·      RCN Processing: RCN processing volumes increased 219.6%, driven
by enhanced processing capabilities, as detailed in our Q4 2024 production
update. Notably, March 2025 marked a record 451 tonnes of RCN processed. We
remain on track to meet our 2025 processing target of 6,000-7,000 tonnes, with
additional capacity to be brought online in H2 2025 at minimal capex. This
quarter also included the processing of 351 tonnes of third-party RCN to
produce a new specialised unpeeled product. This product line, which delivers
margins comparable to our own RCN processing, will serve as a complement to
our internal inventory.

·      Processing Efficiency: New equipment installed during late 2024
has led to tangible gains in processing efficiency. Key improvements included:

o  Better whole-to-broken nut ratios

o  Enhanced peeling performance

o  Increased extraction rates- while the headline extraction rate of 24%
includes unpeeled cashews, the normalised rate of 21.5% for internal RCN
represents a significant improvement over Q1 2024.

·      Production & Sales: Higher processing volumes are translating
directly into output and sales:

o  Cashew production rose 322%

o  Cashew sales volumes increased 84.9%

·      Sales Prices: Prices for peeled cashews in Q1 2025 rose 78.5%
compared to Q1 2024. Following the substantial gains observed in prices from
Q4 2024, prices have stabilised at current levels.

 

                                                 Q1-2025   Q1-2024   Change

 RCN Inventory
 Opening RCN Inventory (tonnes)                  742       1,751     -57.6%
 RCN Purchased (tonnes)                          1,684     190       786.3%
 RCN Processed (tonnes)                          (879)     (275)     219.6%
 RCN Sold (tonnes)                               Nil       (42)      n/a
 Closing RCN Inventory (tonnes)                  1,547     1,624     -4.7%

 Cashew Processing
 Opening Cashews (tonnes)                        79        176       -55.1%
 RCN Processed (tonnes)                          879       275       219.6%
 Cashew Extraction Rate                          24.0%     18.2%     31.9%
 Cashew Produced (tonnes)                        211       50        322.0%
 Cashew Sales (tonnes)                           172       93        84.9%
 Closing Cashews (tonnes)                        118       133       -11.3%

 Average Sales prices per tonne
 -       Unpeeled Cashews                        n/a       €3,150    n/a
 -       Peeled Cashews (including mixed)        €5,800    €3,250    78.5%

 

Lincoln Moore, Dekel's Executive Director, said: "With Q1 2025 Palm Oil
revenue estimated to be over 45% higher compared to Q1 2024, driven by a 27%
lift in CPO prices and a 217% surge in PKO prices, our Palm Oil Operation
continues to deliver solid profitability.

 

"Our Cashew Operation has delivered a step-change in performance in Q1 2025,
with production up 322% and pricing up 78.5% compared to Q1 2024. We are
firmly on track for our first EBITDA-positive year - a key milestone in
returning value to our shareholders."

 

** 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

 Zeus (Nomad and Joint Broker)             +44 (0) 203 829 5000

 James Joyce

 Darshan Patel

 John Moran

 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 is currently transitioning to full commercial
production.

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