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 2021 (the ‘Accounts’). The Company also gives notice that its Annual General Meeting will be held at Hill Dickinson LLP, The Broadgate Tower, 20 Primrose Street, London EC2A 2EW on 26 July 2022 at 10am 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
· Record Revenue and EBITDA delivered from the Ayenouan palm oil plant in Côte d’Ivoire (‘Palm Oil Operation’) primarily driven by record Crude Palm Oil (‘CPO’) production and record CPO pricing:
o 66.2% increase in revenues to €37.4m (2020: €22.5m) – includes sale of CPO, Palm Kernel Oil, Palm Kernel Cake and Nursery Plants
o Gross margin increased by 70.6% to 17.4% (2020: 10.2%), with post period end margins further improving towards historical levels
o 333.3% increase in EBITDA to €5.2m (2020: €1.2m)
o Net profit after tax of €1.0m (2020: €2.2m net loss)
· The Company’s cashew processing plant at Tiebissou in Côte d’Ivoire (the ‘Cashew Operation’) recorded a Net Loss of €0.4m in 2021 during its construction phase and entered the commissioning phase in December 2021 with pilot production and sales commencing in early January after 2021 year-end.
| Year ended 31 December | 2021 | 2020 | % change |
| Palm Oil Operation | |||
| Revenue | €37.4m | €22.5m | 66.2% |
| Gross Margin | €6.5m | €2.3m | 182.6% |
| Gross Margin % | 17.4% | 10.2% | 70.6% |
| G&A | (€3.5m) | (€2.8m) | (25.0%) |
| EBITDA | €5.2m | €1.2m | 333.3% |
| Net profit / (loss) after tax | €1.0m | (€2.2m) | n/a |
| Cashew Operation | |||
| Net Loss* | (€0.4m) | Nil | n/a |
| Dekel Group Net profit / (loss) after tax | €0.6m | (€2.2m) | n/a |
*Cashew pilot production commenced in early January post-2021 year-end
Operational Highlights – Palm Oil Operation
· 17.5% increase in FY2021 CPO production compared to FY2020, resulting in record annual production of 39,953 tonnes
· 21.0% extraction rate achieved in FY 2021 (FY2020: 22.1%)
· 14.9% increase in FY2021 CPO sales compared to FY2020, resulting in record annual sales of 39,092 tonnes
· 44.2% increase in average CPO prices to €868 per tonne in FY2021 (FY2020: €602). This represents an annual Company record sales price
· 22.7% increase in FY2021 PKO sales compared to FY2020
· 42.5% increase in average PKO prices to €851 in FY2021 (FY2020: €597)
Operational Highlights – Cashew Operation
· Cashew Operation capital works progressed significantly in FY2021 from a project at an early land preparation and construction phase to a largely commissioned plant with pilot production having commenced in early January 2022
· Delays in final key equipment items have stalled the ramp-up of production in H1 2022; however, with the arrival of the colour sorter on 12 June 2022, we expect to see a material increase in operating capacity shortly
· Cashew Operation expected to become net operating cash flow positive in Q4 2022
Lincoln Moore, Dekel Agri-Vision’s Executive Director, said: “It was a significant year for Dekel with our Palm Oil Operation delivering record breaking operating and financial results and our Cashew Operation moving materially towards first production, albeit with unprecedented macro conditions impacting the timing of delivery of full capacity. Whilst macro conditions are challenging, CPO prices continue to remain strong, underpinning the profitability of the Palm Oil Operation despite a period of weaker fresh fruit bunches volumes in H1 2022 and, together with the imminent ramp-up phase of the Cashew Operation, Dekel is well positioned to deliver a period of transformational operating and financial growth.”
