Dekel Agri-Vision Plc (LON:DKL), the West African agribusiness company focused on building a portfolio of sustainable and diversified projects, has announced its interim results for the six months ended 30th June 2022.
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 Agri-Vision 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.”
