ACOMO N.V.

Earnings Release • Jul 25, 2023

PRESS RELEASE: HALF-YEAR REPORT 2023

Interim dividend set at €0.40 per share

ACOMO REPORTS ADJUSTED EBITDA OF €49.8 MILLION IN FIRST SIX MONTHS OF 2023 AND STRONG CASH FLOW OF €54.2 MILLION WITH SOLID PERFORMANCE IN MOST SEGMENTS AMID VARYING MARKET CONDITIONS

ROTTERDAM (NL), 25 JULY 2023

Today, ACOMO N.V., the Euronext Amsterdam-listed natural food products and ingredients Group, reports H1 2023 results and sets the interim dividend at €0.40 per share.

Performance highlights:

• Reported EBITDA of €45.3 million versus €56.1 million in H1 2022; negative cocoa hedging results accounted for the majority of the decrease in the Group's EBITDA.
• Adjusted Gross Profit margin increased to 13.6% versus 13.2% prior year.
• Strong Operating Cash Flow of €54.2 million due to a further decrease of working capital despite increased interest expenses.
• Double-digit EBIT growth in Spices & Nuts, Edible Seeds, and Food Solutions versus previous year.
• Dividend of €0.40 per share is in-line with past years.

(in € millions)	H1 2023	H1 2022	Change vs H1 2022
Sales	668.0	711.9	-6.2%
Adjusted EBITDA	49.8	54.2	-8.2%
Adjusted Net Profit	27.1	31.6	-14.2%
Net Profit	22.0	31.2	-29.5%
Operating Cash flow	54.2	(5.9)

"In the first half of 2023, Acomo delivered strong performance across Spices and Nuts, Edible Seeds, and Food Solutions. Organic Ingredients was impacted by destocking throughout the global supply chain, continued inflationary pressure, and changes in consumer spending. The impact of the cocoa hedge results was due to a mismatch between physical sales due to lower demand and the futures position. Corrective actions have been implemented to rectify the situation, including tighter controls and rigorous sales contract management," said CEO Kathy Fortmann. "The diversity of our activities and focus on a plant-based portfolio continues to be a core strength of the Acomo Group, in line with our strategy. Acomo's Board of Directors remains confident in the potential of the Group across the diversified activities."

Key figures H1 2023

Consolidated figures (in € millions)	H1 2023	H1 2022
Sales	668.0	711.9
Gross profit	86.7	95.7
EBITDA	45.3	56.1
Operating income (EBIT)	36.4	46.4
Financial expense	(7.8)	(3.9)
Corporate income tax	(6.6)	(11.3)
Net profit	22.0	31.2
Shareholders' equity	402.8	404.3
Total assets	804.7	948.5
Ratios
Solvency –equity as % of total assets	50.3%	42.8%
Earnings and equity per share (in €)

Earnings per share	0.75	1.05
Equity per share as at 30 June	13.60	13.65

Over the first six months of 2023, Acomo's consolidated sales decreased by -6.2% to €668.0 million (H1 2022: €711.9 million), due to lower volumes and lower prices. Gross profit decreased by -9.4% to €86.7 million (H1 2022: €95.7 million). Gross profit as a percentage of sales was 13.0% (H1 2022: 13.5%). For the first half of 2023, net profit decreased to €22.0 million (H1 2022: €31.2 million). Total General and Administrative expenses increased slightly to €50.3 million (H1 2022: €49.3 million), mainly due to cost inflation.

The interest expenses increased by €3.8 million due to increased interest rates for borrowings. The average tax rate decreased from 26.6% in H1 2022 to 23.2% in H1 2023 due to changes to the country mix.

The reported results include amortization charges of -€2.5 million, equal to H1 2022, in relation to the acquisition of Tradin Organic as well as unrealized FX/CX hedge results, which impacted both gross profit and operating expenses:

(in € millions)	H1 2023				H1 2022
	Reported	Unrealized FX/CX hedge results	Acquisition amort. charges	Adjusted	Reported	Unrealized FX/CX hedge results	Acquisition amort. charges	Adjusted	% change adjusted
Gross profit	86.7	(4.4)		91.1	95.7	1.9	-	93.8	-3%
% to sales	13.0%			13.6%	13.5%			13.2%
Operating expenses	(50.3)		(2.5)	(47.8)	(49.3)		(2.5)	(46.8)
EBIT	36.4	(4.4)	(2.5)	43.3	46.4	1.9	(2.5)	47.0	-8%
Net profit	22.0	(3.3)	(1.8)	27.1	31.2	1.4	(1.8)	31.6	-14%

Currency euro/US dollar

The average euro/US dollar exchange rate of 1.081 in H1 2023 was +1.1% stronger than in H1 2022 (1.093), resulting in a limited translation impact of +€4.1 million on sales and +€0.2 million on net profit.

The euro/US dollar rate at 30 June 2023 of 1.091 reflected the slightly weaker US dollar against the euro compared to the 2022 year-end rate of 1.071. The impact of the weaker US dollar on total assets was -€8.9 million.

Interim dividend H1 2023

Based on the fundamentals of the business, overall performance, and cash flow generation in H1, the interim dividend has been set at € 0.40 per share. The ex-dividend date is 28 July 2023 and the dividend is payable on 8 August 2023.

Activity reviews per segment

Spices and Nuts

The Spices and Nuts segment delivered a robust performance in the first six months with double-digit EBITDA growth versus H1 2022. Coconut products performed very strongly throughout H1. Tree nuts sales improved further and were especially strong towards the end of H1 despite substantially lower price levels versus the previous year.

Acomo's Spices and Nuts segment is comprised of Catz International, Tovano, King Nuts & Raaphorst, and Delinuts.

Edible Seeds

The Edible Seeds segment had a strong first half year, driven especially by North America. Both gross profit and EBITDA improved further in Europe and North America due to strong margins. The US business continued to grow across all businesses, including Ingredients, Wildlife, SunGold and Sourcing and Trading. SunButter®, our natural and allergy-friendly sunflower butter, benefited from increased consumer demand with an increase in retail sales revenue. The SunButter® team continues to drive growth through innovation and recently launched Jammies™, a convenient ready-to-eat frozen sandwich.

The European Edible Seeds segment delivered higher profits versus previous year, due to improved poppy seeds margins and expansion to other edible seeds, while the pasteurization facility of FISCe faced a difficult period due to a slowdown in market demand for heat-treated products combined with increased processing capabilities in origin countries.

Companies in the Edible Seeds segment include Red River Commodities and Red River Global Ingredients in North America and Red River Van Eck, Food Ingredients Service Center Europe (FISCe), and SIGCO Warenhandel in Europe.

Organic Ingredients

Tradin Organic business performance was materially impacted by losses on cocoa futures contracts. The Organic Cocoa business had to recognize material realized and unrealized losses on its cocoa hedging position accounting for most of the decline in reported profits. Hedging through futures is common practice, however a 10-year high in market prices resulted in lower sales volumes, leading to a significant mismatch in the expiration date of the futures contracts and the sales of physical products. Corrective actions have been taken to mitigate this exposure going forward.

The demand for organic products suffered from more selective consumer spending, especially in Europe. In North America, all segments continued to perform well; however, in Europe, key products, like cocoa, struggled with lower demand due to ten-year high market prices. The Coffee business unit, Trabocca, continued its upward trend post-COVID lockdowns in the USA and Europe, albeit with increased pressure on margins.

Tea

Acomo's Tea Business, Royal Van Rees Group ("Van Rees"), realized lower sales over the first six months of 2023 compared to the same period the previous year. Demand for tea slowed significantly due to several challenges in global tea market and industry. Van Rees continued to expand the business in different markets, further strengthening its global client base and product portfolio, and the fruits and herbs speciality business recorded significant growth.

Food Solutions

The Food Solutions segment, Snick, increased both revenue and gross margins in a difficult market. Turnover in the first half-year was higher versus the same period the previous year, with EBIT growing significantly. Snick's products and services are well positioned to meet current trends, such as transparency in the food chain, clean label, and strong increases in demand for plantbased products and alternative protein sources.

Consolidated balance sheet

Total assets amounted to €804.7 million as at 30 June 2023 (year-end 2022: €860.8 million). The main financial developments in the first half of 2023 were:

• Shareholders' equity decreased by €9.1 million to €402.8 million as at 30 June 2023 (year-end 2022: €411.9 million). The main movements were the dividend payments to shareholders of €23.7 million, and a negative currency translation effect of €7.9 million, partly offset by the H1 2023 net profit of €22.2 million.
• Working capital decreased by -€45.4 million compared to 31 December 2022, due to lower inventories, partly offset by higher trade receivables and lower trade payables.
• Solvency as at 30 June 2023 was 50.3% (30 June 2022: 42.8%).

Outlook 2023

Given the nature of our activities, it is difficult to predict market developments or Group results. The impact of the current global economy and trends in consumer behaviour, the geopolitical situation, inflation rates, and currency rate developments on the outlook for the remainder of the year cannot be predicted. The Board is confident in the knowledge, experience, and capabilities of Acomo's management to deal with these uncertainties in the best way possible, as they have done in the past.

Note

This H1 2023 report has not been subject to an audit.

Financial calendar

28 July 2023	Ex-dividend date, interim dividend FY 2023
8 August 2023	Dividend payment date, interim dividend FY 2023
20 February 2024	Publication of the 2023 financials (unaudited) – pre-market
8 March 2024	Publication of the annual report FY 2023

Responsibility statement of the Executive Board as per section 5:25c (2) (c) of the Dutch Financial Supervision Act (Wft)

The Company's Executive Directors hereby declare that, to the best of their knowledge:

• 1. The half-year report for the first six months of 2023 gives a true and fair view of the assets, liabilities, financial position and profit of the Company and its consolidated entities.
• 1. The half-year report for the first six months of 2023 gives a true and fair view of the financial position of the Company at the balance sheet date and the situation during H1 2023 of the Company and its related entities whose financial information has been consolidated in the half-year report.

Rotterdam, 25 July 2023

CEO CFO

Kathy Fortmann Allard Goldschmeding

ANNEXES

Page	7	Consolidated income statement H1 2023
Page	8	Consolidated balance sheet as at 30 June 2023
Page	10	Condensed consolidated cash flow statement H1 2023
Page	11	Statement of changes in equity H1 2023
Page	12	Consolidated statement of comprehensive income H1 2023
Page	13	Notes to the H1 2023 consolidated interim financial statements

This report in the English language is the only official press release of the company. The Group does no longer issue a Dutch version of this press release.

Note to the editors:

For further information, please contact:

ACOMO N.V.	Creative Venue PR
Mrs K.L. Fortmann	Mr F.J.M. Witte, spokesperson
WTC, Beursplein 37	Sophialaan 43
3011 AA Rotterdam	1075 BM Amsterdam
The Netherlands	The Netherlands
info@acomo.nl	f.witte@creativevenue.nl
Tel. +31 10 4051195	Tel. +31 20 4525225
www.acomo.nl	www.creativevenue.nl

About ACOMO N.V.

ACOMO N.V. is an international group with as its principal business the sourcing, trading, treatment, processing, packaging and distribution of conventional and organic natural food products and ingredients. Our main trading subsidiaries are Catz International B.V. in Rotterdam, the Netherlands (spices and food raw materials), The Organic Corporation B.V. in Amsterdam, the Netherlands, and Tradin Organics USA LLC in Aptos, California, USA (organic ingredients), Royal Van Rees Group B.V. in Rotterdam, the Netherlands (tea), Red River Commodities Inc. in Fargo, USA, Red River Global Ingredients Ltd. in Winkler, Canada, Red River-van Eck B.V. in Etten-Leur, the Netherlands, Food Ingredients Service Center Europe B.V. in Etten-Leur, the Netherlands, and SIGCO Warenhandelsgesellschaft mbH in Hamburg, Germany (edible seeds), King Nuts B.V. in Bodegraven, Delinuts B.V. in Ede, and Tovano B.V. in Maasdijk, the Netherlands (nuts), and Snick EuroIngredients N.V. in Ruddervoorde, Belgium (food solutions). Acomo shares have been traded on Euronext Amsterdam since 1908.

Consolidated income statement
(in € thousands)	H1 2023	H1 2022
Sales	668,027	711,881
Cost of goods sold	(581,302)	(616,133)
Gross profit	86,725	95,748
General and administrative expenses	(50,342)	(49,348)
Operating income (EBIT)	36,383	46,400
Financial income and expenses	(7,766)	(3,923)
Profit before income tax	28,617	42,477
Corporate income tax	(6,634)	(11,284)
Net profit	21,983	31,193
Profit attributable to shareholders of the Company	22,157	31,128
Profit attributable to non-controlling interests	(174)	65
Earnings per share
Basic EPS (in €)	0.75	1.05
Diluted EPS (in €)	0.75	1.05

Consolidated balance sheet

(in € thousands)
	30 June 2023	31 December	30 June 2022
Assets		2022
Non-current assets
Intangible assets	205,851	210,472	209,980
Property, plant, and equipment	49,527	52,350	54,645
Right-of-use assets	17,646	17,408	16,212
Other non-current receivables	3,365	2,357	1,982
Deferred tax assets	250	275	2,509
Total non-current assets	276,639	282,862	285,328
Current assets
Inventories	328,270	384,390	438,915
Trade receivables	168,722	166,791	194,262
Other receivables	28,631	18,271	20,491
Derivative financial instruments	568	3,549	7,423
Cash and cash equivalents	1,877	4,892	2,032
Total current assets	528,068	577,893	663,123
Total assets	804,707	860,755	948,451

Consolidated balance sheet
(in € thousands)
	30 June 2023	31 December	30 June 2022
Equity and liabilities		2022
Shareholders' equity
Total shareholders' equity	402,846	411,883	404,301
Non-controlling interests	1,627	1,836	1,806
Total equity	404,473	413,719	406,107
Non-current liabilities and provisions
Bank borrowings	119,547	120,133	93,256
Lease liabilities	14,541	14,447	13,400
Provisions and other non-current liabilities	13,096	14,417	17,417
Total non-current liabilities and provisions	147,184	148,997	124,073
Current liabilities
Current portion long-term bank borrowings	628	650	23,061
Bank borrowings	140,951	163,188	246,317
Lease liabilities	4,007	3,802	3,596
Trade creditors	62,724	71,571	90,454
Tax liabilities	6,304	8,908	7,896
Derivative financial instruments	7,267	5,039	858
Other current liabilities and accrued expenses	31,169	44,881	46,089
Total current liabilities	253,050	298,039	418,271
Total liabilities	400,234	447,036	542,344
Total equity and liabilities	804,707	860,755	948,451

Condensed consolidated cash flow statement

(in € thousands)	H1 2023	H1 2022
Cash flow from operating activities	46,806	56,254
Net changes in working capital	22,475	(47,770)
Paid interest and taxes	(15,081)	(14,374)
Net cash generated from operating activities	54,200	(5,890)
Net cash used for investing activities	(3,500)	(1,873)
Cash flow from financing activities
Dividend paid	(23,688)	(17,766)
Issue of shares	-	168
Net changes in long-term borrowings	(586)	(11,589)
Net changes in bank financing of working capital	(27,030)	37,912
Payment of leases	(2,295)	(2,288)
Net cash used for financing activities	(53,599)	6,437
Net increase/(decrease) in cash and cash equivalents	(2,899)	(1,326)
Cash and cash equivalents as at 1 January	4,892	3,254
Exchange gains/(losses) on cash and cash equivalents	(116)	104
Cash and cash equivalents as at 30 June	1,877	2,032

Statement of changes in equity H1 2023

(in € thousands)					Net
		Share			profit for	Total	Non
	Share	premium	Other	Retained	the	shareholders'	controlling	Total
	capital	reserve	reserves	earnings	period	equity	interests	equity
Balance as at
1 January 2022	13,325	155,105	22,102	119,773	53,956	364,261	1,393	365,654
Net profit for the
period	-	-	-	-	31,128	31,128	65	31,193
Other
comprehensive
income	-	-	26,447	-	-	26,447	348	26,795
Appropriation of
net profit	-	-	-	53,956	(53,956)	-	-	-
New shares issued	4	164	-	-	-	168	-	168
Employee share
option plan	-	-	68	-	-	68	-	68
Dividend relating
to 2021, final	-	-	-	(17,771)	-	(17,771)	-	(17,771)
Balance as at
30 June 2022	13,329	155,269	48,617	155,958	31,128	404,301	1,806	406,107
Balance as at
1 January 2023	13,329	155,269	45,974	142,630	54,681	411,883	1,836	413,719
Net profit for the
period	-	-	-	-	22,157	22,157	(174)	21,983
Other
comprehensive
income	-	-	(7,635)	-	-	(7,635)	(35)	(7,670)
Appropriation of
net profit	-	-	-	54,681	(54,681)	-	-	-
Employee share
option plan	-	-	135	-	-	135	-	135
Dividend relating
to 2022, final	-	-	-	(23,694)	-	(23,694)	-	(23,694)
Balance as at
30 June 2023	13,329	155,269	38,474	173,617	22,157	402,846	1,627	404,473

Consolidated statement of comprehensive income H1 2023	H1 2023	H1 2022
(in € thousands)
Net profit	21,983	31,193
Other comprehensive income (OCI)
OCI to be reclassified to profit or loss in subsequent periods
Movement currency translation reserves, net	(7,875)	26,920
Movement on cash flow hedges	205	(125)
Total other comprehensive income	(7,670)	26,795
Total comprehensive income	14,313	57,988
Total comprehensive income attributable to shareholders of the parent	14,522	57,575
Total comprehensive income attributable to non-controlling interests	(209)	413

Notes to the H1 2023 consolidated interim financial statements

Segment information H1 2023
(in € thousands)	Spices and	Edible	Organic		Food
	Nuts	Seeds	Ingredients	Tea	Solutions	Other	Total
Sales	213,862	144,828	235,046	62,809	12,377	(895)	668,027
Operating expenses	(192,502)	(127,778)	(228,614)	(59,504)	(9,267)	(588)	(618,253)
Operational EBITDA	21,360	17,050	6,432	3,305	3,110	(1,483)	49,774
Unrealized FX/CX hedge
results	(615)		(3,810)				(4,425)
Reported EBITDA	20,745	17,050	2,622	3,305	3,110	(1,483)	45,349
Depreciation and
amortization	(999)	(2,619)	(4,473)	(507)	(270)	(98)	(8,966)
Operating income (EBIT)	19,746	14,431	(1,851)	2,798	2,840	(1,581)	36,383
Financial results							(7,766)
Corporate income tax							(6,634)
Net result							21,983
Total assets	167,440	149,040	290,654	68,500	13,021	116,052	804,707
Total liabilities	116,248	86,295	91,081	26,383	7,142	73,085	400,234
H1 2022
Sales	219,358	140,899	273,912	66,135	11,905	(328)	711,881
Operating expenses	(201,305)	(124,772)	(259,130)	(61,969)	(9,216)	(1,269)	(657,661)
Operational EBITDA	18,053	16,127	14,782	4,166	2,689	(1,597)	54,220
Unrealized FX/CX hedge
results	(437)		2,311				1,874
Reported EBITDA	17,616	16,127	17,093	4,166	2,689	(1,597)	56,094
Depreciation and
amortization	(976)	(3,421)	(4,380)	(503)	(278)	(136)	(9,694)
Operating income (EBIT)	16,640	12,706	12,713	3,663	2,411	(1,733)	46,400
Financial results							(3,923)
Corporate income tax							(11,284)
Net result							31,193
Total assets	193,534	158,934	368,107	78,183	11,764	137,929	948,451
Total liabilities	146,898	97,160	161,459	34,766	9,554	92,507	542,344

The column 'Other' represents holding costs and intra-Group items.

Sales per geography		Europe	North
(in € thousands)	NL	other	America	Other	Total
H1 2023	104,923	221,081	283,041	58,982	668,027
H1 2022	117,920	247,184	289,021	57,756	711,881
Other			30 June	31 December	30 June
			2023	2022	2022
Number of FTEs			1,109	1,191	1,136

The interim financial statements have not been subject to an audit.

General

The interim financial statements for the six months ended 30 June 2023 comprise the results of Acomo ('the Company') and its subsidiaries and have been prepared in accordance with International Financial Reporting Standards (IFRS), IAS 34 'Interim Financial Reporting', as adopted by the European Union. The interim statements do not contain all the information required for annual financial statements and should be read in conjunction with the Annual Report 2022, dated 10 March 2023 (published on the website of the Company). The accounting policies adopted are consistent with those of the previous fiscal year and corresponding interim reporting period and are in accordance with IFRS.

Shareholders' equity

The movements in shareholders' equity are shown in the consolidated statement of changes in shareholders' equity on page 11.

As at 30 June 2023, the number of shares outstanding was 29,617,746 (31 December 2022: 29,617,746). Based on the existing share options granted, 32,250 share options are vested but not yet exercised. A total of 6,000 share options will vest on 1 July 2023. In the years 2024 until 2029, a total of 294,500 share options will vest.

Corporate governance, risks, and risk management

The risks related to the Group's activities and the risk control and management systems it has in place are unchanged compared to their description in the Annual Report of 2022. The main risks and uncertainties remain applicable in the current fiscal year. As COVID-19 has shown, however, multiple risks and uncertainties can arise simultaneously with compounded effects.

Seasonality

The half-year reported results of Acomo are not impacted by a seasonal pattern. The sales and margins are determined by market prices and conditions rather than seasonal fluctuations.