Dekel Agri-Vision maintains EBITDA and strengthens cashew turnaround

Dekel Agri-Vision Plc (LON:DKL), the West African agribusiness company focused on building a portfolio of sustainable and diversified projects, has announced its audited results for the year ended 31 December 2024. The Accounts will be made available to download later today from the Company’s website at www.dekelagrivision.com or mailed to individual shareholders who have elected to receive a physical copy.

Financial Summary

As shown in the table below, Group EBITDA for FY2024 remained stable at €2.6 million, in line with FY2023. This consistent performance reflects the initial impact the operational turnaround in the Cashew Operation during H2 2024, which offset a softer performance, albeit profitable performance in the Palm Oil Operation. Key highlights are outlined below:

·      Palm Oil Operation Financial Performance: The Palm Oil Operation generated a positive EBITDA of €3.9 million in FY2024, representing a year-on-year decline of 18.7%. This decrease was primarily driven by lower volumes and prices of Crude Palm Oil (CPO), which adversely affected revenue. Despite this, both gross margin percentage and overheads remained stable, supporting a resilient EBITDA outcome. Looking ahead to FY2025, we anticipate a stronger performance, underpinned by a significant rebound in CPO prices observed so far this year.

·      Cashew Operation Financial Performance: The Cashew Operation reported an EBITDA loss of €1.3 million, marking a substantial improvement of 40.9% compared to FY2023. This turnaround was largely attributable to the successful integration of new equipment in Q4 2024, which enhanced production volumes and operational efficiencies, alongside improved cashew prices. We expect continued progress in FY2025 and remain on track to deliver the Cashew Operation’s first positive EBITDA result.

The summary of the Group Financial Performance for FY2024 is laid out further below.

Operational Highlights – Palm Oil Operation

·      Fresh Fruit Bunch (‘FFB’) volumes and Crude Palm Oil (‘CPO’) production declined 17.0% and 16.8% respectively compared to FY2023.   

·      CPO sales volumes decreased 16.5% in FY2024 compared to last year, in line with lower production.

·      The average CPO sales price in FY2024 was a historically strong €790 per tonne, albeit 9.1% below the average price achieved in 2023.

o  Notably, international CPO prices rose significantly towards the end of the year, driving up local prices. December 2024 sales achieved a near-record €1,014 per tonne.

·      The CPO extraction rate for FY2024 was 21.5%, slightly above the 21.4% achieved in FY2023.

Operational Highlights – Cashew Operation Update

·      Following a challenging period, the Cashew Operation made significant progress in the H2 FY2024. Raw Cashew Nut (‘RCN’) processing and cashew production increased 115.9% and 234.3% respectively in Q4 2024 compared to Q4 2023.

·      Peeled Cashew prices increased by 61.5% in Q4 2024 compared to Q4 2023.  This increase was driven by improved operational efficiencies, which enhanced the mix of final products for sale, and stronger market pricing.

·      As a result of these improvements, the Cashew Operation commenced its transition to EBITDA positive results.

Financial Restructure Post Year End

·      Conditional equity fundraising of approximately £2.33m and a conditional retail offer to existing shareholders to raise up to a further £0.3m.

·      Intended conversion of a £1m loan held by Youval Rasin into equity at the fundraise price of 0.55p.

·      Negotiated and agreed in principle revised terms of its lending facilities with each of NSIA Bank, BIDC and AgDevCo.

Lincoln Moore, Dekel Agri-Vision’s Executive Director, said: “Group EBITDA for FY2024 held steady at €2.6 million, reflecting strong progress in the Cashew Operation during H2, which offset a softer year in the Palm Oil Operation.”

“The Palm Oil Operation delivered a solid €3.9 million EBITDA despite lower CPO volumes and prices, supported by stable margins and disciplined cost control. With CPO prices rebounding, we expect improved results in FY2025.”

“The Cashew Operation demonstrated substantial improvement following the successful integration of new equipment in late FY2024. We are seeing continued momentum and remain on track to achieve our first positive EBITDA from this operation in FY2025.”

“We are pleased by the strong support shown by both new and existing shareholders in the oversubscribed fundraise. The fundraise, alongside the conversion of Youval’s loan and the restructuring of our debt facilities, marks a critical step in strengthening our balance sheet and aligning our financial structure with our long-term growth strategy. We remain focused on delivering value through our sustainable agri-business operations and are confident that these developments position us well to capitalise on the significant opportunities ahead.”