TIDMDKL
RNS Number : 1193E
Dekel Agri-Vision PLC
28 June 2023
Dekel Agri-Vision Plc / Index: AIM / Epic: DKL / Sector: Food
Producers
28 June 2023
Dekel Agri-Vision Plc ('Dekel' or the 'Company')
2022 Final Results and AGM
Dekel Agri-Vision Plc (AIM: DKL) , the West African agribusiness
company focused on building a portfolio of sustainable and
diversified projects, is pleased to announce its audited results
for the year ended 31 December 2022 (the 'Accounts'). The Company
also gives notice that its Annual General Meeting ('AGM') will be
held at Hill Dickinson LLP, The Broadgate Tower, 20 Primrose
Street, London EC2A 2EW on 27 July 2023 at 9.30am BST. The Notice
of AGM will be sent to shareholders and the Notice of AGM and
Accounts will be made available to download later today from the
Company's website www.dekelagrivision.com.
Financial Highlights
Palm Oil Operation
-- Strong EBITDA of EUR4.6m delivered from the Ayenouan palm oil
plant in Côte d'Ivoire ('Palm Oil Operation') primarily driven by
record Crude Palm Oil ('CPO') and Palm Kernel Oil Pricing ('PKO')
offsetting a historically low Fresh Fruit Bunch ('FFB') harvesting
year:
o 18.4% decrease in revenues to EUR30.5m (2020: EUR37.4m) -
includes sale of CPO, Palm Kernel Oil ('PKO'), Palm Kernel Cake
('PKC') and Nursery Plants
o Gross margin increased by 9.2% to 19.0% (2021: 17.4%)
o 2022 EBITDA of EUR4.6m (2021: EUR5.2m)
o Net profit after tax of EUR1.0m (2020: EUR1.0m)
Cashew Operation
-- First year of cashew pilot production commenced and first year of sales achieved of EUR0.7m
-- Cashew Operation operating loss of EUR2.3m recorded for 2022
during the commissioning process
-- Significant improvement in financial results expected in 2023
as commercial production ramps up
*Cashew Operation in commissioning phase during 2022
Year ended 31 December 2022 2021 % change
Palm Oil Operation
---------- ---------- ---------
Revenue EUR30.5m EUR37.4m -18.4%
---------- ---------- ---------
Gross Margin EUR5.8m EUR6.5m -10.8%
---------- ---------- ---------
Gross Margin % 19.0% 17.4% 9.2%
---------- ---------- ---------
G&A (EUR3.4m) (EUR3.5m) 2.9%
---------- ---------- ---------
EBITDA EUR4.6m EUR5.2m -9.6%
---------- ---------- ---------
Net profit / (loss) after tax EUR1.0m EUR1.0m 10.0%
---------- ---------- ---------
Cashew Operation
---------- ---------- ---------
Revenue EUR0.7m nil n/a
---------- ---------- ---------
Net Loss* (EUR2.3m) (EUR0.4m)
---------- ---------- ---------
Dekel Group Net profit / (loss)
after tax (EUR1.3m) EUR0.6m
---------- ---------- ---------
The summary of the Group Financial Performance for FY2022 is
laid out further below.
Operational Highlights - Palm Oil Operation
-- 35.5% decrease in FY2022 CPO production compared to FY2021
driven by an unprecedently low FFB harvest year.
-- An improved CPO extraction rate of 22.1% was achieved in FY 2022 (FY 2021: 21.0%).
-- 33.4% decrease in FY2022 CPO sales compared to FY2021
reflecting the lower CPO production volumes.
-- 18.1% increase in CPO prices to EUR1,025 per tonne in FY2022
compared to FY2021 (FY 2022: EUR868). This represents an annual
Company record sales price.
-- 28.4% decrease in FY 2022 PKO sales compared to FY 2021 reflecting lower production levels.
-- Company record PKO price achieved in FY 2022 of EUR1,381 per tonne.
Lincoln Moore, Dekel 's Executive Director , said: "Achieving a
strong EBITDA of EUR4.6m from the Palm Oil Operation despite
operating in the lowest high season production period we have
experienced was a credible outcome. With CPO prices remaining
higher than historical averages and a much stronger H1 2023 high
season, the Palm Oil Operation is well positioned to deliver a
strong H1 2023 financial performance."
"Following a lengthy commissioning process during 2022, the
operating and financial performance of the Cashew Operation is now
poised to materially improve in 2023."
"Given reasons to be optimistic about both the Palm Oil
Operation and the Cashew Operation, we are excited about our
prospects to deliver a strong financial performance in 2023."
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.
**S **
For further information please visit the Company's website
www.dekelagrivision.com or contact:
Dekel Agri-Vision Plc
Youval Rasin
Shai Kol
Lincoln Moore +44 (0) 207 236 1177
WH Ireland Ltd (Nomad and Joint Broker)
James Joyce
Darshan Patel +44 (0) 20 7220 1666
Optiva Securities Limited (Joint Broker)
Christian Dennis
Daniel Ingram +44 (0) 203 137 1903
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 in
2023.
CHAIRMAN'S STATEMENT
Summary
The Palm Oil Operation experienced a surge in CPO prices during
2022, reaching unprecedented levels. This significantly contributed
to our financial performance during a period of very low production
due to an atypically weak high season. Additionally, our mill
operations performed well demonstrated by the improved CPO
extraction rate and effective operating cost management, despite
global inflation. These factors collectively established a solid
foundation that allowed the Palm Oil Operation to achieve a strong
EBITDA of EUR4.6m.
The Cashew Operation achieved notable progress during 2022
including first production and first sales revenue, despite
equipment delays resulting in a much longer than expected
commission phase and a net loss of EUR2.3m. With all key equipment
on site prior to year end, commercial production is now well
underway and we believe that the financial performance of the
Cashew Operation will significantly improve during 2023.
Palm Oil Operation
CPO production volumes started well in January 2022, however,
the expected high season, which typically peaks from February
through May did not materialize as usual. Consequently, this marked
the weakest high season in the Company's history. It is important
to note that this decline in production was experienced across the
region. Nonetheless, local experts anticipated that this variation
is temporary, and we have seen a significant improvement in the
2023 high season so far.
We achieved record prices for CPO and PKO in 2022 as global
inflationary pressures post Covid-19 created supply constraints
which was compounded by the war in Ukraine which hampered the
supply of sunflower oil, a substitution for CPO. We saw some easing
in the global supply constraints as the year progressed and CPO
prices softened to around $US1,000 towards the end of 2022, still
well above the long term CPO price average of around EUR800 per
tonne. We anticipate CPO prices may soften further as 2023
progresses although to this point, CPO prices remain above
historical averages and supportive of a strong 2023 year of
financial performance. Whilst seasonal and annual variations in CPO
prices are inevitable, we remain positive on the medium to long
term outlook for CPO prices given challengers bringing more supply
to the market and demand side robustness due to the necessity
nature of vegetable oils and therefore CPO, the largest consumed
vegetable oil world-wide.
After a lengthy consultation period, the Roundtable on
Sustainable Palm Oil ('RSPO') finally provided a clear pathway in
H2 2022 of the information required to complete the Company estates
audit and we are now preparing the works required with the
objective of completing the audits of the Palm Oil Mill and Company
estates at the same time. The two key final reports requested by
RSPO for the estates audit were a LUCA (land use change analysis)
and HCV-HCS (High Conservation Value - High Carbon Stock)
assessment. Both reports were commissioned post period end in early
2023 and we expect to receive these reports in early Q3 2023. With
these reports completed we will be able to engage RSPO auditors to
complete the audit and we will update the market as soon as this
audit process has commenced.
Cashew Operation
The Cashew Operation achieved key milestones in 2022 including
first production and first sales. However, the ramp in production
has been hindered by supplier delays including the sorting and
shelling equipment delivery being well behind schedule from the
Italian supplier. The Company attempted to mitigate delays by
taking over the logistics of shipment directly rather than await
consolidation in Italy by the Cashew operation vendor and utilising
substitute shelling equipment in order to continue the testing and
commissioning of the entire Cashew Operation. Now with all key
equipment now on site we commenced commercial production including
the first quarterly market reporting. We expect a material
improvement in production in 2023 and strong progression towards
the Cashew Operation becoming a positive contributor to group
profitability after reporting a EUR2.3 million net loss in
2022.
The Directors firmly believe that, given time, the Cashew
Operation has the potential to surpass the Palm Oil Operation in
terms of profit contribution to the Group. Our approach to the
development of the Cashew project allows for significant capacity
expansion within a short period. With a nameplate capacity of
15,000 tonnes per annum ('tpa'), the plant's production can be
increased by 50% at no additional cost by adding a third shift,
thus reaching a production capacity of 15,000tpa. Moreover, with a
capital expenditure of EUR5-6 million, the mill's capacity can be
doubled to 30,000tpa, which the Directors estimate could generate
approximately EUR35-40 million in annual revenues based on current
prices.
Other Projects
While we have future expansion plans, including the processing
of a third commodity and clean energy initiatives, these projects
are currently on hold as we prioritize the ramp up of the Cashew
Operation, which we believe will play a pivotal role in enhancing
the Group's financial performance in 2023 and beyond.
Group Financial Performance
A summary of the Group financial performance for FY2022, in
addition to the comparatives for the previous 5 years, is outlined
in the table below.
FY2022 FY2021 FY 2020 FY 2019 FY 2018 FY 2017
FFB collected (tonnes) 116,733 190,020 154,151 176,019 146,036 171,696
---------- --------- ---------- ---------- ---------- ---------
CPO production (tonnes) 25,751 39,953 34,002 37,649 33,077 38,736
---------- --------- ---------- ---------- ---------- ---------
CPO sales (tonnes) 26,016 39,092 34,008 37,713 32,692 38,373
---------- --------- ---------- ---------- ---------- ---------
Average CPO price
per tonne EUR1,025 EUR868 EUR602 EUR491 EUR542 EUR680
---------- --------- ---------- ---------- ---------- ---------
Total Revenue (all
products) EUR31.2m EUR37.4m EUR22.5m EUR20.9m EUR20.9m EUR30.2m
---------- --------- ---------- ---------- ---------- ---------
Gross Margin EUR5.1m EUR6.5m EUR2.3m EUR1.7m EUR1.7m EUR6.9m
---------- --------- ---------- ---------- ---------- ---------
Gross Margin % 16.7% 17.4% 10.2% 8.1% 8.3% 22.8%
---------- --------- ---------- ---------- ---------- ---------
Overheads EUR3.9m EUR3.8m EUR2.8m EUR3.2m EUR3.2m EUR3.6m
---------- --------- ---------- ---------- ---------- ---------
EBITDA EUR2.7m EUR4.8m EUR1.2m EUR0.2m (EUR0.2m) EUR4.5m
---------- --------- ---------- ---------- ---------- ---------
EBITDA % 9.3% 12.8% 5.3% 1.0% - 14.9%
---------- --------- ---------- ---------- ---------- ---------
Net Profit / (Loss)
After Tax (EUR1.3m) EUR0.6m (EUR2.2m) (EUR3.3m) (EUR3.3m) EUR1.6m
---------- --------- ---------- ---------- ---------- ---------
Net Profit / (Loss)
After Tax % - 1.6% - - - 5.3%
---------- --------- ---------- ---------- ---------- ---------
Total Assets EUR54.7m EUR51.7m EUR43.3m EUR33.6m EUR33.4m EUR33.9m
---------- --------- ---------- ---------- ---------- ---------
Total Liabilities EUR39.4m EUR35.5m EUR30.8m EUR20.8m EUR21.8m EUR19.2m
---------- --------- ---------- ---------- ---------- ---------
Total Equity EUR15.3m EUR16.3m EUR12.5m EUR12.8m EUR11.6m EUR14.7m
---------- --------- ---------- ---------- ---------- ---------
Palm Oil Operation
-- Strong EBITDA of EUR4.6m delivered from the Ayenouan palm oil
plant in Côte d'Ivoire ('Palm Oil Operation') primarily driven by
record Crude Palm Oil ('CPO') and Palm Kernel Oil Pricing ('PKO')
offsetting a historically low Fresh Fruit Bunch ('FFB') harvesting
year:
o 18.4% decrease in revenues to EUR30.5m (2020: EUR37.4m) -
includes sale of CPO, Palm Kernel Oil ('PKO'), Palm Kernel Cake
('PKC') and Nursery Plants
o Gross margin increased by 9.2% to 19.0% (2021: 17.4%)
o 2022 EBITDA of EUR4.6m (2021: EUR5.2m)
o Net profit after tax of EUR1.1m (2020: EUR1.0m)
Cashew Operation
-- First year of cashew pilot production commenced and first year of sales achieved of EUR0.7m
-- Cashew Operation operating loss of EUR2.3m recorded for 2022
during the commissioning process
-- Significant improvement in financial results expected in 2023
as commercial production ramps up
Outlook
Looking ahead, with the Palm Oil Operation currently experience
a rebound in production quantities and prices continuing to remain
high the short term outlook for this operation is positive. In
addition, with the Cashew operation is now transitioning towards a
consistent and growing financial contributor to the Group's
performance, we remain on track to deliver a record financial
performance in 2023.
I extend my gratitude to the Board, Management, employees, and
advisors for their support and hard work throughout the year.
Andrew Tillery
Non-Executive Chairman Date: 27 June 2023
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
31 December
--------------------
2022 2021
--------- ---------
Note Euros in thousands
---- --------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,240 1,595
Trade receivables 1,568 1,487
Inventory 4 3,158 3,240
Bank deposits - restricted 10 679 595
Other accounts receivable 5 950 365
--------- ---------
Total current assets 8,595 7,282
--------- ---------
NON-CURRENT ASSETS:
Bank deposits - restricted 10 850 501
Property and equipment , net 7 45,235 43,892
Total non-current assets 46,085 44,393
--------- ---------
Total assets 54,680 51,675
========= =========
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
31 December
--------------------
2022 2021
--------- ---------
Note Euros in thousands
---- --------------------
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term loans and current maturities
of long-term loans 10b 5,671 5,431
Trade payables 1,359 1,374
Advances from customers 346 108
Loan from non-controlling interest 6 - 915
Other accounts payable 8 3,852 2,646
--------- ---------
Total current liabilities 11,228 10, 4 74
--------- ---------
NON-CURRENT LIABILITIES:
Long-term lease liabilities 9 128 169
Accrued severance pay, net 127 135
Loan from shareholder 6 630 -
Long-term loans 10 27,241 24,562
Total non-current liabilities 28,126 24,866
--------- ---------
Total liabilities 39,354 35,340
--------- ---------
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF
THE COMPANY 11
Share capital 177 170
Additional paid-in capital 40,736 39,98 5
Accumulated deficit (18,804) (17,971)
Capital reserve 2,532 2,532
Capital reserve from transactions with
non-controlling interests (9,315) (8,710)
--------- ---------
15,326 16,006
Non-controlling interests - 329
--------- ---------
Total equity 15,326 16,335
Total liabilities and equity 54,680 51,675
========= =========
The accompanying notes are an integral part of the consolidated
financial statements.
June 27, 2023
-------------------- ------------------ ------------------ ------------------
Date of approval Youval Rasin Yehoshua Shai Kol Lincoln John Moore
of the
financial statements Director and Chief Director and Chief Executive Director
Executive Officer Finance Officer
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Year ended
31 December
-----------------------------
2022 2021
-------------- -------------
Euros in thousands
Note (Except per share amounts)
-----------------------------
Revenues 12 31,205 37,391
Cost of revenues 15 a 26,185 30,880
-------------- -------------
Gross profit 5,020 6,511
General and administrative expenses 15 b 3,845 3,869
-------------- -------------
Operating profit 1,175 2,642
Other income 103 -
Finance cost 15 c (2,475) (1,726)
Profit (loss) before taxes on income (1,197) 916
Taxes on income 14 141 2 75
-------------- -------------
Net income (loss) and total comprehensive
income (loss) (1,338) 641
============== =============
Attributable to:
Equity holders of the Company (833) 757
Non-controlling interests (505) (116)
-------------- -------------
Net income (loss) and total comprehensive
income (loss) (1,338) 641
-------------- -------------
Net earnings (loss) per share attributable
to equity holders of the Company:
Basic and diluted net earnings (loss)
per share 16 0.00 0.00
============== =============
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the Company
----------------------------------------------------------------------
Capital
reserve
from transactions
Additional with
Share paid-in Accumulated Capital non-controlling Non-controlling Total
capital capital deficit reserve interests Total interests Equity
-------- ---------- ----------- -------- ----------------- ------ --------------- -------
Euros in thousands
------------------------------------------------------------------------------------------------
Balance as of 1
January, 2021 142 35,570 (18,728) 2,532 (7,754) 11,762 700 12,462
Net income (loss)
and total
comprehensive
income (loss) - - 757 - - 757 (116) 641
Issue of shares
(Note 10) 26 3,719 - 3,745 - 3,745
Non-controlling
interests arising
from
initially
consolidated
subsidiary 2 401 - - ( 956 ) (553) (255) ( 808 )
Share-based
compensation - 295 - - 295 - 295
-------- ---------- ----------- -------- ----------------- ------ --------------- -------
Balance as of 31
December 2021 170 39,985 (17,971) 2,532 (8,710) 16,006 329 16,335
-------- ---------- ----------- -------- ----------------- ------ --------------- -------
Net loss and total
comprehensive
loss - - (833) - - (833) (505) (1,338)
Issue of shares
for services
provided
(Note 11) - 44 - - 44 - 44
Issue of shares
upon acquisition
of
non-controlling
interests (Note
6) 7 707 - - (605) 109 176 285
Balance as of 31
December 2022 177 40,736 (18,804) 2,532 (9,315) 15,326 - 15,326
======== ========== =========== ======== ================= ====== =============== =======
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended
31 December
--------------------
2022 2021
-------- ----------
Euros in thousands
--------------------
Cash flows from operating activities:
Net income (loss) (1,338) 641
-------- ----------
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating
activities:
Adjustments to the profit or loss items:
Depreciation 1,554 1,888
Share-based compensation - 295
Accrued interest on long-term loans and non-current liabilities 1,421 1 ,188
Change in employee benefit liabilities, net (8) (103)
Gain from sale of property and equipment (103) -
Changes in asset and liability items:
Decrease (increase) in inventories 82 (1,957)
Increase in other accounts receivable (531) (1,296)
Increase in trade payables 28 498
Increase (decrease) in advances from customers 238 (1,863)
Increase in other accounts payable 1,206 859
-------- ----------
3,887 (491)
-------- ----------
Cash paid during the year for:
Income taxes (135) (264)
Interest (1,848) ( 1 ,188)
-------- ----------
(1,983) (1,452)
-------- ----------
Net cash provided by (used in) operating activities 566 (1,302)
======== ==========
The accompanying notes are an integral part of the consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended
31 December
--------------------
2022 2021
--------- ---------
Euros in thousands
--------------------
Cash flows from investing activities:
Investment in bank deposits (433) (814)
Sale of property and equipment 206 -
Purchase of property and equipment (2,566) (4,568)
--------- ---------
Net cash used in investing activities (2,793) (5,382)
--------- ---------
Cash flows from financing activities:
Issue of shares (offering net of expenses) - 3,726
Cash paid on acquisition of non-controlling
interests - (806)
Long-term lease, net (41) (23)
Loan to subsidiary by non-controlling interests - 915
Receipt (repayments) of short-term loans, net (1,668) 605
Receipt of long-term loans 10,577 5,997
Repayment of long-term loans (5,995) (2,338)
--------- ---------
Net cash provided by financing activities 2,873 8,077
--------- ---------
Increase in cash and cash equivalents 645 1,393
Cash and cash equivalents at beginning of year 1,595 202
--------- ---------
Cash and cash equivalents at end of year 2,240 1,595
========= =========
Supplemental disclosure of non-cash activities:
Issuance of shares in consideration for non-controlling
interest in Pearlside 714 403
The accompanying notes are an integral part of the consolidated
financial information.
NOTE 1:- GENERAL
a. 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"), as well as constructing a Raw
Cashew Nut ("RCN") processing plant, which is currently in the
initial production phase. The Company's registered office is in
Limassol, Cyprus.
b. 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 palm oil mill.
c. Pearlside Holdings Ltd. ("Pearlside"), a company incorporated
in Cyprus, is a subsidiary of the Company since December 2020. The
Company holds 100% interest since December 2022 (previously 70.7%
interest since February 2021). Pearlside has a wholly owned
subsidiary in Cote d'Ivoire, Capro CI SA ("Capro"). Capro is
currently engaged in the initial production phase of its RCN
processing plant in Cote d'Ivoire near the village of Tiabisu (see
also Note 11).
d. DekelOil Consulting Ltd. a company located in Israel and a
wholly owned subsidiary of DekelOil Siva, is engaged in providing
services to the Company and its subsidiaries.
e. Cash flow from operations and working capital deficiency:
In 2022 the Company generated a positive cash flow from
operation of approx EUR0.5 million compared to a negative cash flow
of EUR1.3 million in 2021. Palm Oil activity continued to be strong
and continued to generate positive operating cash flow, which was
offset by the negative operating cash flow from the RCN activity
which is in its commissioning phase. The Group working capital
deficiency continued to decrease to EUR2.6 million at 31 December
2022 from EUR3.2 million as of 31 December 2021. In addition,
expenditures for the completion of the RCN processing plant of
Pearlside have been almost entirely paid and have now entered the
production phase with operational capacity in the process of
increasing materially over the coming months. As a result, the RCN
operation is expected to produce additional operating cash flow for
the Group in the latter half of 2023 and beyond. The Group has
prepared detailed forecasted cash flows through the end of 2024,
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, the Company's 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 1:- GENERAL (Cont.)
f. Effects of inflation and increase in interest rate:
Following the global macroeconomic developments in 2022, there
was an increase in rates of inflation in worldwide. As part of the
measures taken to restrain inflationary price increases, central
banks around the world, including the Bank of Israel, began raising
their benchmark interest rates. All of the Company's loans bear
fixed interest rates (except a negligible amount of EUR147
thousands), and accordingly the increase in interest rates has not
had a material effect on the consolidated financial statements.
g. Definitions:
The Group - DEKEL AGRI-VISION PLC and its subsidiaries.
The Company - DEKEL AGRI-VISION PLC.
Subsidiaries - Companies that are controlled by the Company-
CS DekelOil Siva Ltd, DekelOil CI SA, DekelOil
Consulting Ltd, and commencing from December
2020 - Pearlside Holdings, Capro CI SA.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies have been applied consistently
in the financial statements for all periods presented, unless
otherwise stated.
a. Basis of presentation of the financial statements:
These financial statements have been prepared in accordance with
International Financial Reporting Standards as adopted by the
European Union ("IFRS").
The financial statements have been prepared on a cost basis.
The Company has elected to present profit or loss items using
the function of expense method.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) :
b. Consolidated financial statements:
The consolidated financial statements comprise the financial
statements of companies that are controlled by the Company
(subsidiaries). Control is achieved when the Company is exposed, or
has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its
power over the investee. Potential voting rights are considered
when assessing whether an entity has control. The consolidation of
the financial statements commences on the date on which control is
obtained and ends when such control ceases.
The financial statements of the Company and of the subsidiaries
are prepared as of the same dates and periods. The consolidated
financial statements are prepared using uniform accounting policies
by all companies in the Group. Significant intragroup balances and
transactions and gains or losses resulting from intragroup
transactions are eliminated in full in the consolidated financial
statements.
Non-controlling interests in subsidiaries represent the equity
in subsidiaries not attributable, directly or indirectly, to a
parent. Non-controlling interests are presented in equity
separately from the equity attributable to the equity holders of
the Company. Profit or loss and components of other comprehensive
income are attributed to the Company and to non-controlling
interests. Losses are attributed to non-controlling interests even
if they result in a negative balance of non-controlling interests
in the consolidated statement of financial position.
A change in the ownership interest of a subsidiary, without a
change of control, is accounted for as a change in equity by
adjusting the carrying amount of the non-controlling interests with
a corresponding adjustment of the equity attributable to equity
holders of the Company less / plus the consideration paid or
received.
c. Business combinations and goodwill:
Business combinations are accounted for by applying the
acquisition method. The cost of the acquisition is measured at the
fair value of the consideration transferred on the acquisition date
with the addition of non-controlling interests in the acquiree. In
each business combination, the Company chooses whether to measure
the non-controlling interests in the acquiree based on their fair
value on the acquisition date or at their proportionate share in
the fair value of the acquiree's net identifiable assets.
Direct acquisition costs are carried to the statement of profit
or loss as incurred.
In a business combination achieved in stages, equity interests
in the acquiree that had been held by the acquirer prior to
obtaining control are measured at the acquisition date fair value
while recognizing a gain or loss resulting from the revaluation of
the prior investment on the date of achieving control.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) :
c. Business combinations and goodwill (Cont.):
Contingent consideration is recognized at fair value on the
acquisition date and classified as a financial asset or liability
in accordance with IAS 39. Subsequent changes in the fair value of
the contingent consideration are recognized in profit or loss. If
the contingent consideration is classified as an equity instrument,
it is measured at fair value on the acquisition date without
subsequent remeasurement.
d. Functional currency, presentation currency and foreign currency:
1. Functional currency and presentation currency:
The local currency used in Cote d'Ivoire is the West African CFA
Franc ("FCFA"), which has a fixed exchange rate with the Euro (Euro
1 = FCFA 655.957). A substantial portion of the Group's revenues
and expenses is incurred in or linked to the Euro. The Group
obtains debt financing mostly in FCFA linked to Euros and the funds
of the Group are held in FCFA. Therefore, the Company's management
has determined that the Euro is the currency of the primary
economic environment of the Company and its subsidiaries, and thus
its functional currency. The presentation currency is Euro.
2. Transactions, assets and liabilities in foreign currency:
Transactions denominated in foreign currency are recorded upon
initial recognition at the exchange rate at the date of the
transaction. After initial recognition, monetary assets and
liabilities denominated in foreign currency are translated at each
reporting date into the functional currency at the exchange rate at
that date. Exchange rate differences, other than those capitalized
to qualifying assets or accounted for as hedging transactions in
equity, are recognized in profit or loss. Non-monetary assets and
liabilities denominated in foreign currency and measured at cost
are translated at the exchange rate at the date of the transaction.
Non-monetary assets and liabilities denominated in foreign currency
and measured at fair value are translated into the functional
currency using the exchange rate prevailing at the date when the
fair value was determined.
e. Cash equivalents:
Cash equivalents are considered as highly liquid investments,
including unrestricted short-term bank deposits with an original
maturity of three months or less from the date of acquisition.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) :
f. Financial instruments:
1. Financial assets:
Financial assets are measured upon initial recognition at fair
value plus transaction costs that are directly attributable to the
acquisition of the financial assets, except for financial assets
measured at fair value through profit or loss in respect of which
transaction costs are recorded in profit or loss.
The Company classifies and measures debt instruments in the
financial statements based on the following criteria:
- The Company's business model for managing financial assets; and
- The contractual cash flow terms of the financial asset.
a) Debt instruments are measured at amortized cost when:
The Company's business model is to hold the financial assets in
order to collect their contractual cash flows, and the contractual
terms of the financial assets give rise on specified dates to cash
flows that are solely payments of principal and interest on the
principal amount outstanding. After initial recognition, the
instruments in this category are measured according to their terms
at amortized cost using the effective interest rate method, less
any provision for impairment.
On the date of initial recognition, the Company may irrevocably
designate a debt instrument as measured at fair value through
profit or loss if doing so eliminates or significantly reduces a
measurement or recognition inconsistency, such as when a related
financial liability is also measured at fair value through profit
or loss.
b) Equity instruments and other financial assets held for trading:
Investments in equity instruments do not meet the above criteria
and accordingly are measured at fair value through profit or
loss.
Other financial assets held for trading, including derivatives,
are measured at fair value through profit or loss unless they are
designated as effective hedging instruments.
Dividends from investments in equity instruments are recognized
in profit or loss when the right to receive the dividends is
established.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) :
f. Financial instruments (Cont.) :
2. Impairment of financial assets:
The Company evaluates at the end of each reporting period the
loss allowance for financial debt instruments which are not
measured at fair value through profit or loss.
The Company has short-term financial assets such as trade
receivables in respect of which the Company applies a simplified
approach and measures the loss allowance in an amount equal to the
lifetime expected credit losses. An impairment loss on debt
instruments measured at amortized cost is recognized in profit or
loss with a corresponding loss allowance that is offset from the
carrying amount of the financial asset.
As of 31 December 2021, there were no past-due trade
receivables.
3. Financial liabilities:
a) Financial liabilities measured at amortized cost:
Financial liabilities are initially recognized at fair value
less transaction costs that are directly attributable to the issue
of the financial liability.
After initial recognition, the Company measures all financial
liabilities at amortized cost using the effective interest rate
method.
4. Derecognition of financial instruments:
a) Financial assets:
A financial asset is derecognized when the contractual rights to
the cash flows from the financial asset expire.
b) Financial liabilities:
A financial liability is derecognized when it is extinguished,
that is when the obligation is discharged or cancelled or
expires.
g. Borrowing costs:
The Group capitalizes borrowing costs that are attributable to
the acquisition, construction, or production of qualifying assets
which necessarily take a substantial period of time to get ready
for their intended use or sale.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) :
g. Borrowing costs (Cont.):
The capitalization of borrowing costs commences when
expenditures for the asset are incurred, the activities to prepare
the asset are in progress and borrowing costs are incurred and
ceases when substantially all the activities to prepare the
qualifying asset for its intended use or sale are complete. The
amount of borrowing costs capitalized in a reporting period
includes specific borrowing costs and general borrowing costs based
on a weighted capitalization rate.
h. Leases:
The Company accounts for a contract as a lease when the contract
terms convey the right to control the use of an identified asset
for a period of time in exchange for consideration.
The Group as a lessee:
For leases in which the Company is the lessee, the Company
recognizes on the commencement date of the lease a right-of-use
asset and a lease liability, excluding leases whose term is up to
12 months and leases for which the underlying asset is of low
value. For these excluded leases, the Company has elected to
recognize the lease payments as an expense in profit or loss on a
straight-line basis over the lease term. In measuring the lease
liability, the Company has elected to apply the practical expedient
in the Standard and does not separate the lease components from the
non-lease components (such as management and maintenance services,
etc.) included in a single contract.
On the commencement date, the lease liability includes all
unpaid lease payments discounted at the interest rate implicit in
the lease, if that rate can be readily determined, or otherwise
using the Group's incremental borrowing rate. After the
commencement date, the Group measures the lease liability using the
effective interest rate method.
On the commencement date, the right-of-use asset is recognized
in an amount equal to the lease liability plus lease payments
already made on or before the commencement date and initial direct
costs incurred. The right-of-use asset is measured applying the
cost model and depreciated over the shorter of its useful life or
the lease term.
Following are the periods of depreciation of the right-of-use
assets by class of underlying asset:
Years
-----
Land 99
Motor vehicles 5
The Group tests for impairment of the right-of-use asset
whenever there are indications of impairment pursuant to the
provisions of IAS 36.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) :
i. Biological assets:
Biological assets of the Company are fresh fruit bunches (FFB)
that grow on palm oil trees. The period of biological
transformation of FFB from blossom to harvest and then conversion
to inventory and sale is relatively short (about 2 months).
Accordingly, any changes in fair value at each reporting date are
generally immaterial.
j. Property and equipment:
Property and equipment are stated at cost, net of accumulated
depreciation. Palm oil trees before maturity are measured at
accumulated cost, and depreciation commences upon reaching
maturity.
Depreciation is calculated by the straight-line method over the
estimated useful lives of the assets at the following annual
rates:
%
-------
Extraction mill 2.5
Palm oil plantations 3.33
Computers and peripheral equipment 33
Equipment and furniture 15 - 20
Motor vehicles 25
Agriculture equipment 15
The useful life, depreciation method and residual value of an
asset are reviewed at least each year-end and any changes are
accounted for prospectively as a change in accounting estimate.
Depreciation of an asset ceases at the earlier of the date that the
asset is classified as held for sale and the date that the asset is
derecognized.
k. Impairment of non-financial assets:
The Company evaluates the need to record an impairment of
non-financial assets whenever events or changes in circumstances
indicate that the carrying amount is not recoverable.
If the carrying amount of non-financial assets exceeds their
recoverable amount, the assets are reduced to their recoverable
amount. The recoverable amount is the higher of fair value less
costs of sale and value in use. In measuring value in use, the
expected future cash flows are discounted using a pre-tax discount
rate that reflects the risks specific to the asset. The recoverable
amount of an asset that does not generate independent cash flows is
determined for the cash-generating unit to which the asset belongs.
Impairment losses are recognized in profit or loss.
An impairment loss of an asset, other than goodwill, is reversed
only if there have been changes in the estimates used to determine
the asset's recoverable amount since the last impairment loss was
recognized. Reversal of an impairment loss, as above, shall not be
increased above the lower of the carrying amount that would have
been determined (net of depreciation or amortization) had no
impairment loss been recognized for the asset in prior years and
its recoverable amount. The reversal of impairment loss of an asset
presented at cost is recognized in profit or loss.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) :
l. Revenue recognition:
Revenue from contracts with customers is recognized when the
control over the services is transferred to the customer. The
transaction price is the amount of the consideration that is
expected to be received based on the contract terms.
In determining the amount of revenue from contracts with
customers, the Company evaluates whether it is a principal or an
agent in the arrangement. The Company is a principal when the
Company controls the promised goods or services before transferring
them to the customer. In these circumstances, the Company
recognizes revenue for the gross amount of the consideration. When
the Company is an agent, it recognizes revenue for the net amount
of the consideration, after deducting the amount due to the
principal.
Revenue from the sale of goods:
Revenue from sale of goods is recognized in profit or loss at
the point in time when the control of the goods is transferred to
the customer, generally upon delivery of the goods to the
customer.
Contract balances:
Amounts received from customers in advance of performance by the
Company are recorded as contract liabilities/advance payments from
customers and recognized as revenue in profit or loss when the work
is performed. For all years presented in these financial
statements, such advances were recognized as revenues in the year
subsequent to their receipt.
m. Inventories:
Inventories are measured at the lower of cost and net realizable
value. The cost of inventories comprises costs of purchase and
costs incurred in bringing the inventories to their present
location and condition. Net realizable value is the estimated
selling price in the ordinary course of business less estimated
costs of completion and estimated costs necessary to make the sale.
The Company periodically evaluates the condition and age of
inventories and makes provisions for slow moving inventories
accordingly.
Cost of finished goods inventories is determined on the basis of
average costs including materials, labor and other direct and
indirect manufacturing costs based on normal capacity.
n. Earnings (loss) per share:
Earnings (loss) per share are calculated by dividing the net
income attributable to equity holders of the Company by the
weighted number of Ordinary shares outstanding during the
period.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) :
o. Earnings (loss) per share:
Potential Ordinary shares are included in the computation of
diluted earnings per share when their conversion decreases earnings
per share from continuing operations. Potential Ordinary shares
that are converted during the period are included in diluted
earnings per share only until the conversion date and from that
date in basic earnings per share. The Company's share of earnings
of investees is included based on its share of earnings per share
of the investees multiplied by the number of shares held by the
Company.
p. Provisions:
A provision in accordance with IAS 37 is recognized when the
Group has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the
obligation. When the Group expects part or all of the expense to be
reimbursed, for example under an insurance contract, the
reimbursement is recognized as a separate asset but only when the
reimbursement is virtually certain. The expense is recognized in
profit or loss net of any reimbursement.
q. Fair value measurement:
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
Fair value measurement is based on the assumption that the
transaction will take place in the asset's or the liability's
principal market, or in the absence of a principal market, in the
most advantageous market.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their
economic best interest.
Fair value measurement of a non-financial asset takes into
account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset
in its highest and best use.
The Group uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to
measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
All assets and liabilities measured at fair value or for which
fair value is disclosed are categorized into levels within the fair
value hierarchy based on the lowest level input that is significant
to the entire fair value measurement:
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) :
q. Fair value measurement (Cont.):
Level - quoted prices (unadjusted) in active markets
1 for identical assets or liabilities.
Level - inputs other than quoted prices included within
2 Level 1 that are observable either directly
or indirectly.
Level - inputs that are not based on observable market
3 data (valuation techniques which use inputs
that are not based on observable market data).
r. Share-based payment transactions:
The Company's employees / other service providers are entitled
to remuneration in the form of equity-settled share-based payment
transactions and certain employees / other service providers are
entitled to remuneration in the form of cash-settled share-based
payment transactions that are measured based on the increase in the
Company's share price.
Equity-settled transactions:
The cost of equity-settled transactions with employees is
measured by reference to the fair value of the equity instruments
at the date on which they are granted. The fair value is determined
using an acceptable option model.
The cost of equity-settled transactions is recognized, together
with a corresponding increase in equity, over the period in which
the performance and/or service conditions are fulfilled, ending on
the date on which the relevant employees become fully entitled to
the award ("the vesting date"). The cumulative expense recognized
for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has
expired and the Company's best estimate of the number of equity
instruments that will ultimately vest.
s. Taxes on income:
Current or deferred taxes are recognized in profit or loss,
except to the extent that they relate to items which are recognized
in other comprehensive income or equity.
1. Current taxes:
The current tax liability is measured using the tax rates and
tax laws that have been enacted or substantively enacted by the end
of reporting period as well as adjustments required in connection
with the tax liability in respect of previous years.
2. Deferred taxes:
Deferred taxes are computed in respect of temporary differences
between the carrying amounts in the financial statements and the
amounts attributed for tax purposes.
Deferred taxes are measured at the tax rate that is expected to
apply when the asset is realized or the liability is settled, based
on tax laws that have been enacted or substantively enacted by the
reporting date.
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) :
s. Taxes on income (Cont.)
Deferred tax assets are reviewed at each reporting date and
reduced to the extent that it is not probable that they will be
utilized. Temporary differences for which deferred tax assets had
not been recognized are reviewed at each reporting date and a
respective deferred tax asset is recognized to the extent that
their utilization is probable.
Taxes that would apply in the event of the disposal of
investments in investees have not been taken into account in
computing deferred taxes, as long as the disposal of the
investments in investees is not probable in the foreseeable
future.
Also, deferred taxes that would apply in the event of
distribution of earnings by investees as dividends have not been
taken into account in computing deferred taxes, since the
distribution of dividends does not involve an additional tax
liability or since it is the Company's policy not to initiate
distribution of dividends from a subsidiary that would trigger an
additional tax liability.
t. Significant accounting estimates and assumptions used in the
preparation of the financial statements:
The preparation of the financial statements requires management
to make estimates and assumptions that have an effect on the
application of the accounting policies and on the reported amounts
of assets, liabilities, revenues and expenses. Changes in
accounting estimates are reported in the period of the change in
estimate.
u. Changes in accounting policies - initial application of new
financial reporting and accounting standards and amendments to
existing financial reporting and accounting standards:
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 1 January 2022. The Amendment is 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 (or other component of equity, as applicable) at the
beginning of the earliest period presented.
The application of the Amendment did not have a material impact
on the Company's financial statements.
NOTE 3:- DISCLOSURE OF NEW STANDARDS IN THE PERIOD PRIOR TO THEIR ADOPTION
a. Amendment to IAS 1, "Presentation of Financial Statements":
In January 2020, the IASB issued an amendment to IAS 1,
"Presentation of Financial Statements" regarding the criteria for
determining the classification of liabilities as current or
non-current ("the Original Amendment"). In October 2022, the IASB
issued a subsequent amendment ("the Subsequent Amendment").
According to the Subsequent Amendment:
Only covenants with which an entity must comply on or before the
reporting date will affect a liability's classification as current
or non-current.
An entity should provide disclosure when a liability arising
from a loan agreement is classified as non-current and the entity's
right to defer settlement is contingent on compliance with future
covenants within twelve months from the reporting date. This
disclosure is required to include information about the covenants
and the related liabilities. The disclosures must include
information about the nature of the future covenants and when
compliance is applicable, as well as the carrying amount of the
related liabilities. The purpose of this information is to allow
users to understand the nature of the future covenants and to
assess the risk that a liability classified as non-current could
become repayable within twelve months. Furthermore, if facts and
circumstances indicate that an entity may have difficulty in
complying with such covenants, those facts and circumstances should
be disclosed.
According to the Original Amendment, the conversion option of a
liability affects the classification of the entire liability as
current or non-current unless the conversion component is an equity
instrument.
The Original Amendment and Subsequent Amendment are both
effective for annual periods beginning on or after 1 January 2024
and must be applied retrospectively. Early application is
permitted.
The Company is evaluating the possible impact of the Amendment
on its current loan agreements.
b. Amendment to IAS 8, "Accounting Policies, Changes to Accounting Estimates and Errors":
In February 2021, the IASB issued an amendment to IAS 8,
"Accounting Policies, Changes to Accounting Estimates and Errors"
("the Amendment"), in which it introduces a new definition of
"accounting estimates".
Accounting estimates are defined as "monetary amounts in
financial statements that are subject to measurement uncertainty".
The Amendment clarifies the distinction between changes in
accounting estimates and changes in accounting policies and the
correction of errors.
The Amendment is to be applied prospectively for annual
reporting periods beginning on or after 1 January 2023 and is
applicable to changes in accounting policies and changes in
accounting estimates that occur on or after the start of that
period. Early application is permitted.
NOTE 3:- DISCLOSURE OF NEW STANDARDS IN THE PERIOD PRIOR TO THEIR ADOPTION (Cont.)
c. Amendment to IAS 12, "Income Taxes":
In May 2021, the IASB issued an amendment to IAS 12, "Income
Taxes" ("IAS 12"), which narrows the scope of the initial
recognition exception under IAS 12.15 and IAS 12.24 ("the
Amendment").
According to the recognition guidelines of deferred tax assets
and liabilities, IAS 12 excludes recognition of deferred tax assets
and liabilities in respect of certain temporary differences arising
from the initial recognition of certain transactions. This
exception is referred to as the "initial recognition exception".
The Amendment narrows the scope of the initial recognition
exception and clarifies that it does not apply to the recognition
of deferred tax assets and liabilities arising from transactions
that are not a business combination and that give rise to equal
taxable and deductible temporary differences, even if they meet the
other criteria of the initial recognition exception.
The Amendment applies for annual reporting periods beginning on
or after 1 January , 2023, with earlier application permitted. In
relation to leases and decommissioning obligations, the Amendment
is to be applied commencing from the earliest reporting period
presented in the financial statements in which the Amendment is
initially applied. The cumulative effect of the initial application
of the Amendment should be recognized as an adjustment to the
opening balance of retained earnings (or another component of
equity, as appropriate) at that date.
The Company estimates that the initial application of the
Amendment is not expected to have a material impact on its
financial statements.
d. Amendment to IAS 1 - Disclosure of Accounting Policies:
In February 2021, the IASB issued an amendment to IAS 1,
"Presentation of Financial Statements" ("the Amendment"), which
replaces the requirement to disclose 'significant' accounting
policies with a requirement to disclose 'material' accounting
policies. One of the main reasons for the Amendment is the absence
of a definition of the term 'significant' in IFRS whereas the term
'material' is defined in several standards and particularly in IAS
1.
The Amendment is applicable for annual periods beginning on or
after 1 January 2023. Early application is permitted.
The Company is evaluating the effects of the Amendment on its
financial statements.
NOTE 4:- INVENTORY
31 December
---------------------
2022 2021
--------- ---------
Euros in thousands
---------------------
Raw cashew nuts 1,248 1,381
Spare parts, tools & materials 986 771
Kernel cashew nuts 350 -
Palm oil mill final products 334 902
Plants 240 186
3,158 3,240
========= =========
NOTE 5:- OTHER ACCOUNTS RECEIVABLE
31 December
---------------------
2022 2021
--------- ---------
Euros in thousands
---------------------
Advance payment to suppliers and prepaid
expenses 904 319
Loans to employees 38 29
Government authorities (VAT) 5 10
Prepaid expenses and other receivables 3 7
950 365
========= =========
NOTE 6:- INVESTMENT IN PEARLSIDE HOLDINGS LTD
As described in Note 1c, Pearlside Holdings Ltd ("Pearlside") is
a subsidiary of the Company. As of 1 January 2021, the Company had
a 54% equity interest in Pearlside.
On 8 February 2021, the Company signed an agreement to purchase
an additional 16.7% of Pearlside for a total value of GBP1.062
million (EUR1.2 million), of which GBP354,000 (EUR403 thousand) was
settled via the issue of 7,080,000 new Ordinary shares at 5 pence
per share (see Note 11), and the remaining GBP708,000 (EUR806
thousand) was settled in cash. Following this acquisition, the
Company held 70.7% of Pearlside. The difference between the total
consideration and the carrying amount of the non-controlling
interests, in the amount of EUR 956 thousand, was recorded as a
charge to "capital reserve from transactions with non-controlling
interests" in equity.
During 2021 the shareholders of Pearlside invested additional
funds as a loan to Pearlside, in order to finance the construction
and activity of Pearlside. The portion of the loan provided by the
non-controlling interests amounted to EUR 915 thousand. The loan
bears no interest and is to be repaid only from available funds of
Pearlside. The loan was presented as a current liability in the
consolidated statement of financial position as of 31 December
2021.
On 30 December 2022, the Company signed an agreement to purchase
the remaining 29.3% held by the non-controlling interests by way of
issuing 19,968,701 Ordinary shares of the Company. Based on the
market price of the Company's shares on the date of the purchase,
the total fair value of the shares amounts to EUR714 thousand.
Following this acquisition, the Company holds 100% of
Pearlside.
Concurrently, it was agreed that the loan in the amount of
EUR915 thousand provided by the non-controlling interests, would
only be repaid from the available cash flow from Pearlside, as to
be determined in the sole discretion of the board of directors of
Pearlside. The Company believes that no repayments of the loan will
be made prior to 1 January 2024, and accordingly, the loan has been
classified as a non-current loan from a shareholder. As the loan
bears no interest, the fair value of the loan in the amount of
EUR630 thousand was calculated based on the present value of
estimated future repayments discounted using the prevailing market
rate of interest (7.75%) for a similar type of loan.
Of the total fair value of the shares issued in the amount of
EUR714 thousand, EUR 285 thousand is attributed to the difference
(discount) between the nominal amount of the loan from the
shareholder and the fair value of the loan. The aggregation of
remaining portion of the fair value (EUR 429 thousand) and the
negative carrying amount (EUR 176 thousand) of the non-controlling
interests, in the amount of EUR 605 thousand, has been recorded as
a charge to "capital reserve from transactions with non-controlling
interests" in equity.
NOTE 7:- PROPERTY AND EQUIPMENT, NET
Composition and movement:
Cashew
Computers processing
and Equipment Extraction mill under
peripheral and Motor Agriculture mill Palm oil construction
equipment furniture vehicles equipment and land plantations and land Total
----------- ------------ ------------ ----------- ------------ ----------- -------
Cost:
Balance as of
1 January,
2021 28 2 10 6 1 , 5 52 490 26,281 7,632 12,133 48, 476
----------- ------------ ------------ ----------- ------------ ----------- ------------ -------
Additions
during the
year 87 453 723 - 247 - 3,079 4,589
Disposals
during the
year - - (149) - - - - (149)
----------- ------------ ------------ ----------- ------------ ----------- ------------ -------
Balance as of
1 January,
2022 369 559 2,126 490 26,528 7,632 15,212 52,916
Additions
during the
year 22 302 482 292 105 - 1,797 3,000
Disposals
during the
year - - (352) - (57) - - (409)
Balance as of
31 December,
2022 391 861 2,256 782 26,576 7,632 17,009 55,507
=========== ============ ============ =========== ============ =========== ============ =======
Accumulated
depreciation:
Balance as of
1 January
2021 177 99 958 409 4,569 1,015 - 7,227
----------- ------------ ------------ ----------- ------------ ----------- ------------ -------
Depreciation 31 15 220 26 861 789 - 1 ,942
Disposals
during the
year - - (145) - - - - (145)
----------- ------------ ------------ ----------- ------------ ----------- ------------ -------
Balance as of
31 December
2021 208 114 1,033 435 5,430 1,804 - 9,024
Depreciation 55 88 281 68 737 320 5 1,554
Disposals
during the
year - - (306) - - - - (306)
----------- ------------ ------------ ----------- ------------ ----------- ------------ -------
Balance as of
31 December
2022 263 202 1,008 503 6,167 2,124 5 10,272
=========== ============ ============ =========== ============ =========== ============ =======
Depreciated
cost at 31
December 2022 128 659 1,249 278 20,409 5,508 17,004 45,235
=========== ============ ============ =========== ============ =========== ============ =======
Depreciated
cost at 31
December 2021 161 445 1,093 55 21,098 5,828 15,212 43,892
=========== ============ ============ =========== ============ =========== ============ =======
Substantially all property and equipment are located in Coite
d'Ivoire.
NOTE 8:- OTHER ACCOUNTS PAYABLE
31 December
--------------------
2022 2021
--------- ---------
Euros in thousands
--------------------
Employees and payroll accruals 1,015 917
VAT payable 467 405
Other accounts payable and accrued expenses 2,370 1,324
--------- ---------
3,852 2,646
========= =========
NOTE 9:- RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
On 24 June 2008, DekelOil CI SA signed a lease agreement for 42
hectares near the village of Ayenouan, Cote d'Ivoire. The agreement
is with the village of Adao and the people occupying the land in
Ayenouan. The lease is for 90 years and the payment for the lease
is FCFA 3,000,000 (app. EUR 4,573) per annum.
A subsidiary signed a lease agreement with the government
authorities for 6 hectares near the village of Tiabissuo, Cote
d'Ivoire. The agreement is for a lease of 99 years with an annual
lease payment of 6 million FCFA (app. EUR 9,146)
The right-of-use assets in respect of the above leases are
included in Property and Equipment (Note 7 ). The balance of the
lease liabilities at 31 December 2022 amounted to EUR 12 8 (2021 -
EUR 169 ).
NOTE 10:- LOANS
a. Long-term loans:
Interest
rate as of
31 December 31 December
--------------------
Currency 2022 2022 2021
---------- ------------ --------- ---------
Euros in thousands
--------------------
-
SOGEBOURSE (c.1) In FCFA 8.4% 2,750 4,568
SIB (c.2) In FCFA 6.85% 124 256
AgDevCo (c.3) In Euro 7% 3,600 7,200
BGFI (c.4) In FCFA 7.5% 711 941
BIDC (c.5) In FCFA 7.25% 4,573 4,053
NSIA (c.6) In FCFA 8.5% 2,287 2,287
NSIA (c.7) In FCFA 7.75% 762 133
BGFI (c.8) In FCFA 7.75% 1,441 1,524
HUDSON (c.9) In FCFA 7.5% 15,138 5,991
Poalim (c.10) In NIS 4.2% 76 -
Mizrachi (c.10) In NIS 4.2% 72 -
Total loans 31,534 26,953
Less - current
maturities (4,293) (2,391)
--------- ---------
27,241 24,562
--------- ---------
NOTE 10:- LOANS (Cont.)
b. Short-term loans and current maturities:
31 December
--------------------
2022 2021
---------- --------
Euros in thousands
--------------------
Bank credit line (c.11) 1,378 1,888
Short-term loan from bank - 1,152
Current maturities - per a. above 4,2 93 2,391
---------- --------
5,671 5,431
---------- --------
c. 1. In September 2016 DekelOil CI SA signed a long-term
financing facility agreement with a consortium of institutional
investors arranged by SOGEBOURSE for a long-term loan of up to FCFA
10 billion (approximately EUR15.2 million). Of this amount, FCFA
5.5 billion (approximately EUR8.4 million) was utilized to
refinance the West Africa Development Bank ("BOAD") loan The loan
is repayable over 7 years in fourteen semi annual payments. And
bears interest at a rate of 6.85% per annum.
On 22 October 2016 SOGEBOURSE transferred the funds and the BOAD
loan was repaid in full .
On 1 February 2018 the DekelOil CI SA drew down a second tranche
of FCFA 2.8 billion (EUR4.34 million) from its FCFA 10 billion
(EUR15.2 million) long-term Syndicated Loan Facility with
Sogebourse CI. On the same terms as the first tranche. Part of the
funds were used to repay a short-term loan in the amount of
EUR1,524 thousand and a long-term loan in the amount of EUR497
thousand .
2. In October 2018 DekelOil CI SA signed a loan agreement with
Societe Ivorienne de Banque ("SIB") for FCFA 400 million
(approximately EUR610 thousand). The loan is for 5 years and bears
interest at a rate of 8.2% per annum. One of the boilers in the CPO
extraction mill serves as a security for the loan.
3. In July 2019 DekelOil CI SA signed an agreement with AgDevCo
Limited ("AgDevCo"), a leading African agriculture sector impact
investor for a EUR7.2 million loan for a term of 10 years, 4 years
of principal grace and 6 years of repayment, with a gross interest
rate of 7.5% per annum, variable and based on 12-month Euro Short
Term Rate published by the European Central Bank (which replaced
the Euro Libor used previously) plus a pre-defined spread, and
collared with a minimum rate of 6% per annum and a maximum rate of
9% per annum. In August 2022 DekelOil CI SA repaid EUR3.6 million
out of the EUR7.2 million. Following this repayment, it was agreed
that the interest will be fixed at 7% per annum, and that the
remaining loan will be paid in 4 equal annual instalments starting
in July 2024. It was also agreed that all financial covenants were
canceled. The fixed assets of DekelOil CI SA serves as a security
for this loan.
NOTE 10:- LOANS (Cont.)
4. On 7 July 2020 DekelOil CI SA signed a loan agreement with
Banque Gabonaise Francaise International ("BGFI") for FCFA 800
million (approximately EUR1,220 thousand). The loan is for 5 years
and bears interest at a rate of 7.25% per annum.
5. On 16 March 2016 Capro CI SA signed a loan agreement with the
Bank of Investment and Development of CEDEAO ("EBID") according to
which EBID agreed to grant Capro CI SA a facility of 3,000 million
FCFA (EUR 4,573 thousand). During 2022 Capro CI SA made the last
withdrawal under this loan agreement ayth the amount of EUR520.
The EBID loan shall bear interest at a rate of 8.5% per annum.
The loan has a tenure of seven years and shall be repaid in 20
quarterly installments over five years, commencing after a grace
period on principal payments of two years. Principal payments start
in January 2022. According to the loan agreement as a security for
this loan there is a lien over the equipment of Capro CI SA and an
amount of EUR97 thousand has been deposited in a bank by Capro CI
SA (non-current bank deposits).
6. In 2018 Capro CI SA signed a loan agreement with NSIA bank,
Togo ("NSIA Togo") according to which NSIA Togo agreed to grant
Capro CI SA a facility of 1,500 million FCFA (EUR 2,278
thousand).
NSIA Togo loan shall bear interest at a rate of 7.25%% per
annum. The loan has a tenure of seven years and shall be repaid in
20 quarterly installments over five years, commencing after a grace
period on principal payments of two years from the first withdrawal
made on 20 February 2020. As a security for this loan there is a
lien over the equipment of Capro CI SA and an amount of EUR 49
thousand has been deposited in a bank by Capro CI SA (non-current
bank deposits).
7. On 30 March 2020 Capro CI SA signed a loan agreement with
NSIA bank Cote d'Ivoire ("NSIA") according to which NSIA agreed to
grant Capro CI SA a facility of 500 million FCFA (EUR 762
thousand).
NSIA loan shall bear interest at a rate of 7.25% per annum. The
loan is for two years with one year grace period on principal
payments. The loan was fully repaid in 2022.
In August 2022 Capro CI SA signed a new loan agreement with NSIA
for the same amount. The loan will bear interest at a rate of
7.75%. The loan is for two years with one year grace period on
principal payments.
8. On 3 February 2020 Capro CI SA signed a loan agreement with
Banque Gabonaise Francaise International ("BGFI") for FCFA 1,000
million (approximately EUR1,542 thousand). The loan shall bear
interest at a rate of 7.5% per annum. The loan has a tenure of
seven years and shall be repaid in monthly installments over five
years, commencing after a grace period on principal payments of two
years from the first withdrawal made in September 2020. According
to the loan agreement as a security for this loan an amount of
EUR114 thousand has been deposited in a bank by Capro CI SA
(non-current bank deposits).
NOTE 10:- LOANS (Cont.)
9 . On 25 January 2021 DekelOil CI SA signed an agreement with
Hudson for issuance of a long-term bond of up to 10,000 million
FCFA ) EUR 15.2 million ( . The first tranche of 3,930 million FCFA
( EUR 6 million) was received on 27 January 2021, and the second
tranche of 6 billion FCFA ) EUR 9. 1 million) was received on 24
July 2022. The bond is for 7 years with a 3-year grace for
principal repayments. The first tranche of the bond bears annual
interest of 7.75% and the second tranche of the bond bears annual
interest of 7.25%. According to the agreement DekelOil CI SA
accumulates the funds for each payment prior to each payment by a
monthly payment to be made for that purpose to a designated deposit
account. In addition, a fixed amount has been deposited in a
separate bank account. As of 31 December, 2022, the current deposit
amounts to EUR 649 thousand (2021 - EUR 283 thousand) and the
non-current deposit amounts to EUR 588 thousand (EUR239 thousand),
respectively.
10. In August and in October 2022 a subsidiary of the Company
signed two loan agreements for two vehicles in the amount of EUR148
thousand (denominated in NIS). The loan is for 5 years with annual
interest of 4 .2% which is linked to the prime interest rate in
Israel.
11. The Company has a line of credit of EUR3 million from
various banks in Cote d'Ivoire. The lines of credit are revolving
annually and bear an annual interest rate of 7.75%
NOTE 11:- EQUITY
a. Composition of share capital:
31 December 31 December
---------------------------- ------------------------
2022 2021 2022 2021
------------- ------------- ----------- -----------
Authorized Issued and outstanding
---------------------------- ------------------------
Number of shares
------------------------------------------------------
Ordinary shares
of EUR 0.0003367
par value each 1,000,000,000 1,000,000,000 557,373,476 535,863,569
============= ============= =========== ===========
Each Ordinary share confers upon its holder voting rights, the
right to receive cash and share dividends, and the right to share
in excess assets upon liquidation of the Company.
Commencing from December 2019, pursuant to his remuneration
contract, the General Manager of the company's subsidiary, shall be
issued 400,000 Ordinary Shares per year at par value over the next
3 years, vesting on a monthly basis. The fair value of the Ordinary
shares to be issued at the date of grant amounts to EUR 34
thousand. As of 31 December 2022, all 1,200,000 Ordinary shares are
fully vested. 800,000 Ordinary shares were issued to the General
Manager in 2022.
On 29 January 2021, the Company raised equity totaling to GBP3.3
million (EUR3.7 million, (net of GBP0.23 million (EUR0.26 million)
fund raising costs) through the placing of 70,000,000 new Ordinary
Shares at an issue price of 5 pence per share.
On 8 February 2021, the Company signed an agreement to purchase
an additional 16.7% of Pearlside for a total consideration of
GBP1.062 million ( EUR 1.2 million), of which GBP354,000 ( EUR 403
thousand) was settled via the issue of 7,080,000 new Ordinary
shares at 5 pence per share - see Note 6.
In 2021 (January and September) the Company issued 1,656,029
ordinary shares to certain brokers in consideration for services
provided. The fair value of the shares issued amounting to EUR 64
thousand was recorded in general and administrative expenses.
In 2022 the Company issued 645,037 ordinary shares to certain
brokers and suppliers in consideration for services provided and
issued 496,169 ordinary shares to a director as a remuneration for
his services. The fair value of the shares issued amounting to EUR
44 thousand was recorded in general and administrative
expenses.
See Note 6 for details of issuance of 19,968,701 Ordinary shares
valued at EUR 714 thousand (based on the market price of the
shares) upon acquisition of non-controlling interest in
Pearlside.
NOTE 11:- EQUITY (Cont.)
b. Share option plan:
As of 31 December 2022 and 2021 there are 35,522,314 options
outstanding to purchase Ordinary shares at a weighted average
exercise price of EUR0.033.
There are 5,866,667 options outstanding with a weighted average
exercise price of EUR0.023 that may only be exercised if at any
point following the date of grant, the 30-day Volume Weighted
Average Price of the Ordinary Shares achieves a price per share
equal to or exceeding 6.0 pence. This condition has not been met as
of 31 December 2022.
Accordingly, as of 31 December 2022 and 2021 there are
29,655,647 options that are exercisable at a weighted average
exercise price of EUR0.035.
During 2022 and 2021, no options were granted, exercised,
forfeited or expired.
c. Capital reserve:
The capital reserve comprises the contribution to equity of the
Company by the controlling shareholders.
NOTE 12:- REVENUES
a. Substantially all the revenues are derived from the sales of
Palm Oil, Palm Kernel Oil and Palm Kernel Cake in Cote d'Ivoire,
see also Note 19.
b. Major customers:
Year ended 31 December
------------------------
2022 2021
---------- ------------
Euros in thousands
------------------------
Revenues from major customers which
each account for 10% or more of total
revenues reported in the financial
statements:
Customer A - 9,403 23,925
Customer B - 8,811 5,241
NOTE 13:- FAIR VALUE MEASUREMENT
The fair value of accounts and other receivables, loans, and
trade and other payables approximates their carrying amount due to
their short-term maturities. The fair value of long-term loans with
a carrying amount of EUR32,164 thousands and EUR26,953 thousands
(including current maturities) as of 31 December, 2022 and 2021,
respectively, approximates their fair value (level 3 of the fair
value hierarchy).
NOTE 14:- INCOME TAXES
a. Tax rates applicable to the income of the Company and its subsidiaries:
The Company and its subsidiaries, CS DekelOil Siva Ltd and
Pearlside Holdings Ltd, were incorporated in Cyprus and are taxed
according to Cyprus tax laws. The statutory tax rate is 12.5%.
The carryforward losses (which may be carried forward
indefinitely) of the Company are approximately EUR 31 thousand, of
CS DekelOil Siva Ltd are approximately EUR 20 thousand, and of
Pearlside are approximately EUR 12 thousand.
The subsidiary, DekelOil CI SA, was incorporated in Cote
d'Ivoire and is taxed according to Cote d'Ivoire tax laws. Based on
its investment plan, DekelOil CI SA received a full tax exemption
from local income tax, "Tax on Industrial and Commercial profits,"
for the thirteen years starting 1 January 2014, 50% tax exemption
for the fourteenth year and 25% tax exemption for the fifteenth
year.
The tax exemptions were conditional upon meeting the terms of
the investment plan, which the Group has met.
The subsidiary, Capro CI SA, was incorporated in Cote d'Ivoire
and is taxed according to Cote d'Ivoire tax laws. Based on its
investment plan, Capro CI SA received a full tax exemption from
local income tax, "Tax on Industrial and Commercial profits," for
the thirteen years starting from commencement of production, 50%
tax exemption for the fourteenth year and 25% tax exemption for the
fifteenth year.
The tax exemptions were conditional upon meeting the terms of
the investment plan, which the Group is expecting to meet.
The subsidiary DekelOil Consulting Ltd was incorporated in
Israel and is taxed according to Israeli tax laws.
b. Tax assessments:
The Company's subsidiaries, DekelOil CI SA and Capro CI SA
received a final tax assessment through 2020 and 2019
respectivly.
As of 31 December 2022, the Company and all its other
subsidiaries had not yet received final tax assessments. For
DekelOil Consulting LTD the tax assessment prior to 2014 is deemed
to be final.
c. The tax expense during the year ended 31 December, 2022,
relates to tax of the Company's subsidiaries DekelOil CI SA and
DekelOil Consulting Ltd.
NOTE 15:- SUPPLEMENTARY INFORMATION TO THE STATEMENT OF COMPREHENSIVE INCOME
Year ended
31 December
--------------------
2022 2021
--------- ---------
Euros in thousands
--------------------
a. Cost of revenues:
Cost of fruit 19,072 23,064
Maintenance and other operating costs 3,092 3,251
Salaries and related benefits 1,788 1,937
Depreciation 1,304 1,684
Cultivation and nursery costs 717 588
Vehicles 212 356
26,185 30,880
========= =========
b. General and administrative expenses:
Salaries and related benefits 1,741 1,610
Subcontractors 515 452
Legal, accounting, and professional
fees 274 378
Depreciation 250 204
Office expenses 182 160
Travel expenses 167 84
Vehicle maintenance 148 118
Insurance 111 168
Brokerage and nominated advisor fees 56 99
Share-based compensation - 271
Other 401 325
--------- ---------
3,845 3,869
========= =========
c. Finance cost:
Interest on loans (*) 1,675 1,438
Bank fees 638 400
Exchange rate differences 162 (112)
--------- ---------
2,475 1,726
========= =========
*) Net of interest capitalized of EUR 434 thousand (2021
- EUR827 thousand).
NOTE 16:- INCOME (LOSS) PER SHARE
The following reflects the income (loss) and share data used in
the basic and diluted earnings per share computations:
Year ended 31 December
---------------------------------
2022 2021
----------------- -----------
Euros in thousands
---------------------------------
Net income (loss) attributable to equity
holders of the Company (833) 757
================= ===========
Weighted average number of Ordinary shares
used for computation of:
Basic earnings (loss) per share 537,209,718 528,368,244
Diluted earnings (loss) per share 537,209,718 529,217,521
In 2022, share options are excluded from the calculation of
diluted loss per share as their effect is antidilutive.
NOTE 17:- BALANCES AND TRANSACTIONS WITH RELATED PARTIES
Year ended
31 December
--------------------
2022 2021
--------- ---------
Euros in thousands
--------------------
a. Balances:
Current:
Other accounts payable 286 452
Non-current:
Loan from shareholder (see Note 6) 630 -
b. Compensation of key management personnel
of the Company:
Short-term employee benefits 820 801
Share-based compensation - 224
c. Significant agreements with related parties:
1. In February 2008, DekelOil Consulting Limited ("Consulting")
signed an employment agreement with a shareholder, who is a
director of the Company, the CEO of the Company and the chairman of
the Board of Directors of DekelOil CI SA. Under the employment
agreement, the CEO is entitled to a monthly salary of EUR 20,000
per month. The agreement is terminable by the Company with 24
months' notice. The total annual salary, social benefits, bonuses
and management fee paid to the CEO during 2022 and 2021 was
approximately EUR239 thousand and EUR217 thousand, respectively
.
2. In March 2008, DekelOil Consulting Limited signed an
employment agreement with a shareholder, who is a director of the
Company, its Deputy CEO and Chief Financial Officer. The agreement
was amended on 11 July 2014, by the board of the subsidiary to
reflect the same salary terms as those of the CEO described in c
(1) above. The total annual salary and social benefits paid to the
employee during 2022 and 2021 was approximately EUR239 thousand and
EUR 217 thousand, respectively.
NOTE 18:- FINANCIAL INSTRUMENTS
a. Classification of financial liabilities:
The financial liabilities in the statement of financial position
are classified by groups of financial instruments pursuant to IFRS
9:
31 December
--------------------
2022 2021
----------- -------
Euros in thousands
--------------------
Financial liabilities measured at
amortized cost:
Trade and other payables 5,211 4,022
Short-term loans 1,378 3,040
Long-term lease liabilities 128 169
Loan from shareholder 630 -
Loan from non-controlling interest - 915
Long-term loans (including current
maturities) 31,534 26,947
Total 38,881 35,093
=========== =========
b . Financial risks factors:
The Group's activities expose it to market risk (foreign
exchange risk).
Foreign exchange risk:
The Company is exposed to foreign exchange risk resulting from
the exposure to different currencies, mainly, NIS and GBP. Since
the FCFA is fixed to the Euro, the Group is not exposed to foreign
exchange risk in respect of the FCFA. As of December 31, 20 22 ,
the foreign exchange risk is immaterial.
Liquidity risk:
The table below summarizes the maturity profile of the Group's
financial liabilities based on contractual undiscounted payments
(including interest payments):
31 December 2022
Less 2 to
than 1 to 3 3 to 4 to > 5
one year 2 years years 4 years 5 years years Total
--------- -------- ------ -------- -------- ------ ------
Euros in thousands
---------------------------------------------------------------
Long-term loans
(1) 6,519 6,942 6,487 7,931 5,423 3,262 36,564
Loan from shareholder - - - - - 915 915
Short-term loan 1,378 - - - - - 1,378
Trade payables
and other accounts
payable 5,211 - - - - - 5,211
Long-term lease
liabilities 44 44 44 44 34 1,350 1,559
--------- -------- ------ -------- -------- ------ ------
13,152 6,986 6,531 7,975 5,457 5,527 45,627
========= ======== ====== ======== ======== ====== ======
NOTE 18:- FINANCIAL INSTRUMENTS (Cont.)
31 December 2021
Less 2 to
than 1 to 3 3 to 4 to > 5
one year 2 years years 4 years 5 years years Total
--------- -------- ------ -------- -------- ------ -------
Euros in thousands
----------------------------------------------------------------
Long-term loans
(1) 4,117 3,269 4,563 4,447 4,225 10,937 31,558
Loan from non-controlling
interest 915 - - - - - 915
Short-term loan 3,040 - - - - - 3,040
Trade payables
and other accounts
payable 4,022 - - - - - 4,022
Long-term lease
liabilities 30 15 15 15 15 1,365 1,455
--------- -------- ------ -------- -------- ------ -------
12,124 3,284 4,578 4,462 4,240 12,302 40,990
========= ======== ====== ======== ======== ====== =======
Movement in financial liabilities:
Loan from
Long non-controlling
Short term loans Lease interest
term loans (1) liabilities (2) Total
----------- ----------- ------------- ---------------- -------
Balance as of 1 January
2021 2,437 23,291 192 - 23,557
Receipt of short-term
loan 3,040 - - 915 3,955
Repayment of long-term
lease - - (23) - (23)
Repayment of loans (2,437) (2,339) - - (4,776)
Receipt of long-term
loans - 5,991 - - 5,991
----------------
Balance as of 31 December
2021 3,040 26,943 169 915 28,704
Receipt of short-term
loan 1,378 - - - 1,378
Receipt of long-term
loan (4,591) (4,591)
Repayment of long-term
lease (41) (41)
Repayment of loans (3,040) - - (3,040)
Loan discount (2) 285 285
Receipt of long-term
loans
----------- ----------- ------------- ---------------- -------
Balance as of 31 December
2022 1,378 31,534 128 630 33,670
----------- ----------- ------------- ---------------- -------
1) Including current maturities and accrued interest.
2) 2022 - loan from shareholder, see Note 6.
NOTE 19:- OPERATING SEGMENTS
a. General:
The operating segments are identified based on 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 organized 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
in commissioning stage is incorporated under Pearlside Holdings Ltd
and its subsidiary (see Note 1).
NOTE 19:- OPERATING SEGMENTS (Cont.)
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, and taxes on
income.
b. Reporting operating segments:
Crude Palm Raw Cashew
Oil Nut Unallocated Total
---------- ---------- ----------- -------
Euros in thousands
Year ended 31 December
2022:
Revenues-External
customers 30,459 746 - 31,205
========== ========== =========== =======
Segment operating
profit (loss) 3,727 (1,430) (1,122) 1,175
========== ========== =========== =======
Finance cost (2,182) (265) (28) (2,475)
Other income 103 - - 103
---------- ---------- ----------- -------
Profit (loss) before
taxes on income 1,648 (1,695) (1,150) (1,197)
---------- ---------- ----------- -------
Depreciation and amortization 1,383 146 25 1,554
---------- ---------- ----------- -------
Year ended 31 December
2021:
Revenues-External
customers 37,391 - - 37,391
========== ========== =========== =======
Segment operating
profit (loss) 3,830 (391) (797) 2,642
===========
Finance cost (1,805) (5) 84 (1,726)
-----------
Profit before taxes
on income 2,844 (396) (1,532) 916
===========
Depreciation and amortization 1,861 - 27 1,888
---------- ---------- ----------- -------
Crude Palm Raw Cashew
Oil Nut Unallocated Total
---------- ---------- ----------- ------
Euros in thousands
As of 31 December
2022:
Segment assets 36,389 18,291 - 54,680
========== ========== =========== ======
Segment liabilities 28,427 10,927 - 39,354
========== ========== =========== ======
As of 31 December
2021:
Segment assets 35,368 16,307 - 51,675
========== ========== =========== ======
Segment liabilities 24,397 10,943 - 35,340
===========
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June 28, 2023 02:00 ET (06:00 GMT)
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