DirectorsTalk Interviews caught up with Theo Bache, Analyst at Arden Partners for his thoughts on the update.
Q. Dekel Agri-Vision have now released their H1 2021 Interim Results, Theo what were the key takeaways?
Key takeaways: Revenue of €21.7m an increase of 41% versus H1 2020 and Profit after tax up 400% at €2.00 compared to last year.
Q. Has this meant changes to your forecast?
No forecast change. I have compared this first half result to the last four years to work out an average run rate and I believe that the results comfortably sit within our forecast for the whole year. Should the CPO pricing environment continue, then a model revision might be necessary.
Q. How do you view the company in terms of fair value?
It’s clear that the market are valuing the palm oil business in its entirety and they are pricing that fairly. However, they are entirely discounting the cashew plant which, beyond the obvious merit of diversifying the business away from one single commodity, indicatively doubles the worth of the company on a future cash flow basis. We expect meaningful commercial output to commence in October.