Annual Report • Apr 13, 2023
Annual Report
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| GROUP PROFILE 5 | ||
|---|---|---|
| 1. | OVERVIEW OF THE GROUP 5 | |
| 2. | HISTORY 5 | |
| 3. | GROUP STRUCTURE 6 | |
| 4. | INFORMATION ON SOCFINAF'S HOLDINGS 7 | |
| SOCFIN AGRICULTURAL COMPANY "SAC" LTD 8 | ||
| LIBERIAN AGRICULTURAL COMPANY "LAC" 9 | ||
| SALALA RUBBER CORPORATION "SRC" 10 | ||
| BEREBY-FINANCES "BEFIN" 10 | ||
| SOCIETE DES CAOUTCHOUC DU GRAND BEREBY "SOGB" 11 | ||
| SUD COMOË CAOUTCHOUC "SCC" 12 | ||
| PLANTATIONS SOCFINAF GHANA "PSG" 13 | ||
| OKOMU OIL PALM COMPANY 14 | ||
| SOCAPALM 15 | ||
| SOCIETE ANONYME FORESTIERE ET AGRICOLE "SAFA" 16 | ||
| SAFACAM 16 | ||
| SOCIETE DES PALMERAIES DE LA FERME SUISSE "SPFS" 17 | ||
| AGRIPALMA 18 | ||
| BRABANTA 19 | ||
| SOGESCOL FR 20 | ||
| SOCFINCO FR 21 | ||
| INTERNATIONAL MARKET FOR RUBBER AND PALM OIL 22 | |
|---|---|
| 1. RUBBER 22 |
|
| The international market in 2022 23 | |
| Outlook 2023 23 | |
| 2. PALM OIL 24 |
|
| The international market in 2022 26 | |
| Outlook 2023 26 | |
| ENVIRONMENT AND SOCIAL RESPONSIBILITY 28 | |
| KEY FIGURES 29 | |
| 1. ACTIVITY INDICATORS 29 | |
| 2. KEY FIGURES IN THE CONSOLIDATED INCOME STATEMENT AND THE CASH FLOW STATEMENT 30 | |
| 3. KEY FIGURES IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 | |
| STOCK MARKET DATA 31 | |
| FINANCIAL HIGHLIGHTS OF THE YEAR 31 | |
| CORPORATE GOVERNANCE STATEMENT 32 | |
| 1. INTRODUCTION 32 | |
| 2. CORPORATE GOVERNANCE CHART 32 | |
| 3. BOARD OF DIRECTORS 32 | |
| Composition of the Board of Directors 32 | |
| Other mandates held by the Directors in listed companies 32 | |
| Appointments of Directors 34 | |
| Role and powers of the Board of Directors 34 | |
| Activity report of the Board of Directors 34 | |
| 4. COMMITTEES OF THE BOARD OF DIRECTORS 35 | |
| 4.1. Audit Committee 35 | |
| 4.2. Appointment and Remuneration Committee 35 | |
| 5. REMUNERATIONS 35 | |
| 6. SHAREHOLDING STATUS 36 | |
| 7. FINANCIAL CALENDAR 36 | |
| 8. EXTERNAL AUDIT 36 | |
| 9. CORPORATE, SOCIAL AND ENVIRONMENTAL RESPONSIBILITY 37 | |
| 10. OTHER INFORMATION 37 | |
| STATEMENT OF COMPLIANCE 38 | |
| CONSOLIDATED MANAGEMENT REPORT 39 | |
| 1. CONSOLIDATED FINANCIAL STATEMENTS 39 | |
| 2. FINANCIAL INSTRUMENTS 40 | |
| 3. OUTLOOK 2023 40 | |
| 4. POLITICAL AND ECONOMIC ENVIRONMENT 40 | |
| 5. EVENTS AFTER THE CLOSING DATE 41 | |
| 6. CORPORATE GOVERNANCE 41 | |
| 7. GENERAL INTERNAL CONTROL SYSTEM ADAPTED TO THE GROUP'S SPECIFIC ACTIVITIES 41 | |
| 8. ENVIRONMENT AND SOCIAL RESPONSIBILITY 42 | |
| CONSOLIDATED FINANCIAL STATEMENTS 43 | |
| 1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION 43 | |
| 2. CONSOLIDATED INCOME STATEMENT 45 | |
| 3. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 46 4. CONSOLIDATED STATEMENT OF CASH FLOWS 47 |
|
| 5. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 48 | |
| 6. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 49 | |
| Note 1. Overview and accounting policies 49 | |
|---|---|
| Note 2. Subsidiaries and associates 62 | |
| Note 3. Leases 65 | |
| Note 4. Intangible assets 67 | |
| Note 5. Property, plant and equipment 68 | |
| Note 6. Biological assets 69 | |
| Note 7. Depreciation and impairment 70 | |
| Note 8. Impairment of assets 70 | |
| Note 9. Non-wholly owned subsidiaries in which non-controlling interests are significant 72 | |
| Note 10. Investments in associates 74 | |
| Note 11. Financial assets at fair value through other comprehensive income 77 | |
| Note 12. Deferred taxes 77 | |
| Note 13. Current tax assets and liabilities 78 | |
| Note 14. Income tax expense 78 | |
| Note 15. Inventories 80 | |
| Note 16. Trade receivables (current assets) 81 | |
| Note 17. Other receivables (current assets) 81 | |
| Note 18. Cash and cash equivalents 81 | |
| Note 19. Share capital and share premium 82 | |
| Note 20. Legal reserves 82 | |
| Note 21. Pension obligations 83 | |
| Note 22. Financial debts 85 | |
| Note 23. Trade and other payables 88 | |
| Note 24. Financial instruments 89 | |
| Note 25. Staff costs and average number of staff 91 | |
| Note 26. Other financial income 91 | |
| Note 27. Financial expenses 91 | |
| Note 28. Net earnings per share 91 | |
| Note 29. Dividends and Directors' fees 92 | |
| Note 30. Information on related party 92 | |
| Note 31. Off balance sheet commitments 94 | |
| Note 32. Segment information 94 | |
| Note 33. Risk management 101 | |
| Note 34. Contingent liabilities 105 | |
| Note 35. Political and economic environment 106 | |
| Note 36. Events after the closing date 106 | |
| Note 37. Auditor's fees 106 | |
| COMPANY'S MANAGEMENT REPORT 107 | |
| ACTIVITIES 107 | |
| RESULT FOR THE PERIOD 107 | |
| BALANCE SHEET 108 | |
| PORTFOLIO 108 | |
| COMPANY FINANCIAL STATEMENTS 113 | |
| 1. BALANCE SHEET AT 31ST DECEMBER 2022 113 |
|
| 2. INCOME STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2022 115 |
|
| Proposed distribution of profits 115 | |
| 3. NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS FOR THE 2022 FINANCIAL YEAR 116 |
|
| Note 1. Overview 116 | |
| Note 2. Accounting principles, rules and methods 116 | |
| Note 3. Financial fixed assets 119 | |
| Note 3. Financial fixed assets (continued) 120 |
| Note 3. Financial fixed assets (continued) 121 |
|---|
| Note 4. Equity 122 |
| Note 5. Amounts owed to affiliated undertakings 123 |
| interests: 123 |
| Note 7. Income from participating interests 124 |
| Note 8. Income from other investments and loans forming part of the fixed assets 124 |
| Note 9. Taxation 124 |
| Note 10. Remuneration of the Board of Directors 124 |
| Note 11. Political and economic environment 124 |
| Note 12. Significant events after the year end 124 |
Socfinaf is a Luxembourg company and its registered address is 4, Avenue Guillaume, L-1650, Luxembourg. It was incorporated on 22nd October 1961 and is listed on the Stock Exchange of Luxembourg.
The principal activity of Socfinaf is to manage a portfolio of shares mainly focused on the operation of more than 138,000 hectares of tropical palm oil and rubber plantations in Africa. Socfinaf employs 25,453 people and has achieved a consolidated turnover of EUR 637 million in 2022.
In addition, Intercultures acquired through its Luxembourg subsidiary (Indufina Luxembourg) 54% of an oil palm plantation in Nigeria, Okomu Oil Palm Company.
On the other hand, Intercultures sold its holdings Weala Rubber Company (Liberia) and Palmci (Côte d'Ivoire).
Increased participation in Salala Rubber Corporation "SRC" (Liberia).
01/07/2011 : Share split by 10.
06/10/2011 : Acquisition of 32.9% of Palmcam's shares which is totally owned by Socfinaf.
| Portfolio | Number of shares | Direct % |
|---|---|---|
| Sierra Leone | ||
| SAC | 119,970,000 | 93.00% |
| Liberia | ||
| LAC | 25,000 | 100.00% |
| SRC | 516 | 64.91% |
| Côte d'Ivoire | ||
| Befin | 739,995 | 87.06% |
| Ghana | ||
| PSG | 750,000 | 100.00% |
| Nigeria | ||
| Okomu | 633,172,834 | 66.38% |
| Cameroon | ||
| Socapalm | 3,086,886 | 67.46% |
| Democratic Republic of Congo | ||
| Brabanta | 5,000 | 100.00% |
| France | ||
| SAFA | 577,200 | 100.00% |
| Belgium | ||
| Socfinco | 8,750 | 50.00% |
| Centrages | 7,500 | 50.00% |
| Pépinière | 3,333 | 50.00% |
| Sodimex | 70,000 | 50.00% |
| STP Invest | 1,800 | 100.00% |
| Luxembourg | ||
| Socfinde | 50,000 | 20.00% |
| Terrasia | 3,328 | 33.28% |
| Induservices | 3,000 | 30.00% |
| Management Associates | 1,500 | 15.00% |
| Switzerland | ||
| Sogescol FR | 2,650 | 50.00% |
| Socfinco FR | 650 | 50.00% |
| Induservices FR | 700 | 50.00% |
| Sodimex FR | 650 | 50.00% |
The following pages contain a summary of the activity and comments on the financial information for the past two financial years in which Socfinaf holds a direct or indirect participation.
Unless indicated otherwise, equity includes capital, reserves and the results brought forward before allocation of current year results.
Corporate data refers to consolidated data.
The balance sheet figures are presented in the functional currency of the respective entities.
SAC is active in Sierra Leone in the production of palm oil.
| Area (hectares) | Planted area | ||
|---|---|---|---|
| At 31st December 2022 | Mature | Immature | Total |
| Palm | 12,349 | 0 | 12,349 |
| Concessions : 18,473 ha Permanent staff at 31st December 2022 : 4,182 |
|||
| Production and turnover | 2022 | 2021 | |
| At 31st December | |||
| Production (tons) | |||
| Palm oil | 51,919 | 52,307 | |
| Turnover (EUR 000) | 58,554 | 46,760 | |
| Result (EUR 000) | 16,516 | 16,405 | |
| Average sale price (EUR / kg) | |||
| Palm oil | 1.13 | 0.89 | |
| Average rate EUR / USD | 1.05 | 1.18 | |
| Closing rate EUR / USD | 1.07 | 1.13 | |
| Key figures (USD 000) | 2022 | 2021 | |
| At 31st December | |||
| Fixed assets | 131,376 | 137,598 | |
| Current assets | 7,315 | 13,214 | |
| Equity (*) | 33,684 | 16,376 | |
| Debts, provisions and third parties (*) | 105,007 | 134,435 | |
| Profit / (loss) for the period | 17,307 | 19,372 | |
| Socfinaf's holding (%) | 93.00 | 93.00 |
LAC is active in Liberia in the field of rubber cultivation and industrial rubber processing.
| Area (hectares) | Planted area | ||
|---|---|---|---|
| At 31st December 2022 | Mature | Immature | Total |
| Rubber | 10,555 | 1,781 | 12,336 |
| Concessions : 121,407 ha Permanent staff at 31st December 2022 : 2,052 |
|||
| Production and turnover | 2022 | 2021 | |
| At 31st December | |||
| Production (tons) | |||
| Rubber | 27,401 | 26,872 | |
| Turnover (EUR 000) | 40,757 | 36,783 | |
| Result (EUR 000) | 3,509 | 4,018 | |
| Average sale price (EUR / kg) | |||
| Rubber | 1.49 | 1.37 | |
| Average rate EUR / USD | 1.05 | 1.18 | |
| Closing rate EUR / USD | 1.07 | 1.13 | |
| Key figures (USD 000) | 2022 | 2021 | |
| At 31st December | |||
| Fixed assets | 83,995 | 85,048 | |
| Current assets | 23,589 | 20,297 | |
| Equity (*) | 60,817 | 57,140 | |
| Debts, provisions and third parties (*) | 46,767 | 48,204 | |
| Profit / (loss) for the period | 3,677 | 4,745 | |
| Socfinaf's holding (%) | 100.00 | 100.00 |
SRC is active in Liberia in the rubber sector.
| Area (hectares) | Planted area | ||
|---|---|---|---|
| At 31st December 2022 | Mature | Immature | Total |
| Rubber plantation | 3,204 | 1,241 | 4,445 |
| Concessions : 8,000 ha Permanent staff at 31st December 2022 : 850 |
|||
| Production and turnover | 2022 | 2021 | |
| As at 31st December | |||
| Production (tons) (*) | |||
| Rubber | 4,563 | 3,710 | |
| Turnover (EUR 000) | 4,469 | 3,296 | |
| Result (EUR 000) | -2,229 | -357 | |
| Average sale price (EUR / kg) | |||
| Rubber | 0.98 | 0.89 | |
| Average rate EUR / USD | 1.05 | 1.18 | |
| Closing rate EUR / USD | 1.07 | 1.13 | |
| Key figures (USD 000) | 2022 | 2021 | |
| At 31st December | |||
| Fixed assets | 46,130 | 47,962 | |
| Current assets | 2,686 | 2,870 | |
| Equity (**) | 526 | 2,861 | |
| Debts, provisions and third parties (**) | 48,291 | 47,970 | |
| Profit / (loss) for the period | -2,335 | -421 | |
| Socfinaf's holding (%) | 64.91 | 64.91 |
(*) Agricultural production fully sold to LAC.
Share capital : CFA 8,500,000,000
This Côte d'Ivoire holding company holds 73.16% of SOGB and 70.01% of SCC.
SOGB is active in Côte d'Ivoire in the production and processing of palm oil and rubber.
| Area (hectares) | Planted area | ||
|---|---|---|---|
| At 31st December 2022 | Mature | Immature | Total |
| Palm | 7,471 | 0 | 7,471 |
| Rubber | 12,746 | 3,116 | 15,862 |
| 20,217 | 3,116 | 23,333 |
Concessions : 34,712 ha
Permanent staff at 31st December 2022 : 5,973
| Production and turnover | 2022 | 2021 |
|---|---|---|
| At 31st December | ||
| Production (tons) | ||
| Rubber | 65,815 | 67,727 |
| Palm oil | 35,301 | 38,935 |
| Turnover (EUR 000) | 143,125 | 126,646 |
| Result (EUR 000) | 23,863 | 22,453 |
| Average selling price (EUR / kg) | ||
| Rubber | 1.52 | 1.30 |
| Palm oil | 1.13 | 0.93 |
| Rate EUR / CFA | 655.957 | 655.957 |
| Key figures (CFA million) | 2022 | 2021 |
| At 31st December | ||
| Fixed assets | 64,408 | 66,133 |
| Current assets | 27,065 | 30,876 |
| Equity (*) | 68,879 | 66,231 |
| Debts, provisions and third parties (*) | 22,594 | 30,778 |
| Profit / (loss) for the period | 15,653 | 14,728 |
| Distribution | 8,000 | 13,000 |
| Socfinaf's indirect holding (%) | 63.69 | 63.69 |
Share capital : CFA 964,160,000
SCC is active in Côte d'Ivoire in the industrial rubber processing sector.
Permanent staff at 31st December 2022 : 410
| Production and turnover | 2022 | 2021 |
|---|---|---|
| At 31st December | ||
| Production (tons) | ||
| Rubber | 39,554 | 39,273 |
| Turnover (EUR 000) | 57,479 | 49,859 |
| Result (EUR 000) | 4,858 | 5,340 |
| Average selling price (EUR / kg) | ||
| Rubber | 1.45 | 1.26 |
| Rate EUR / CFA | 655.957 | 655.957 |
| Key figures (CFA million) | 2022 | 2021 |
| At 31st December | ||
| Fixed assets | 3,977 | 4,102 |
| Current assets | 11,978 | 11,123 |
| Equity (*) | 7,987 | 7,800 |
| Debts, provisions and third parties (*) | 7,968 | 7,426 |
| Profit / (loss) for the period | 3,187 | 3,503 |
| Distribution | 2,500 | 2,500 |
| Socfinaf's indirect holding (%) | 60.95 | 60.95 |
Share capital : GHS 150,000,000
PSG is active in Ghana in the production of palm oil and rubber.
| Area (hectares) | Planted area | ||
|---|---|---|---|
| At 31st December 2022 | Mature | Immature | Total |
| Rubber | 627 | 315 | 942 |
| Palm | 6,140 | 0 | 6,140 |
| 6,767 | 315 | 7,082 |
| At 31st December Production (tons) Rubber 814 347 Palm oil 25,375 27,538 Turnover (EUR 000) 33,083 26,378 |
|
|---|---|
| Result (EUR 000) 5,808 11,249 |
|
| Average selling price (EUR / kg) | |
| Rubber 1.19 1.13 |
|
| Palm oil 1.26 0.93 |
|
| Average rate EUR / GHS 8.42 6.87 |
|
| Closing rate EUR / GHS 9.15 6.80 |
|
| Key figures (GHS 000) 2022 2021 |
|
| At 31st December | |
| Fixed assets 465,946 475,665 |
|
| Current assets 65,401 62,178 |
|
| Equity (*) 274,059 225,168 |
|
| Debts, provisions and third parties (*) 257,288 312,675 |
|
| Profit / (loss) for the period 48,891 77,289 |
|
| Socfinaf's holding (%) 100 100 |
Okomu is active in Nigeria in the production and processing of palm oil and rubber.
| Area (hectares) | Planted area | ||
|---|---|---|---|
| At 31st December 2022 | Mature | Immature | Total |
| Rubber | 6,025 | 1,310 | 7,335 |
| Palm | 19,061 | 0 | 19,061 |
| 25,086 | 1,310 | 26,396 |
Concessions : 33,113 ha
Permanent staff at 31st December 2022 : 1,388
| Production and turnover | 2022 | 2021 |
|---|---|---|
| At 31st December | ||
| Production (tons) | ||
| Rubber | 8,124 | 9,285 |
| Palm oil | 54,091 | 46,429 |
| Turnover (EUR 000) | 133,280 | 79,363 |
| Result (EUR 000) | 38,963 | 23,977 |
| Average selling price (EUR / kg) | ||
| Rubber | 1.52 | 1.27 |
| Palm oil | 2.23 | 1.45 |
| Average rate EUR / NGN | 445 | 472 |
| Closing rate EUR / NGN | 479 | 468 |
| Key figures (NGN 000) | 2022 | 2021 |
| At 31st December | ||
| Fixed assets | 55,902,697 | 49,665,596 |
| Current assets | 13,717,176 | 15,674,442 |
| Equity (*) | 42,017,150 | 39,416,748 |
| Debts, provisions and third parties (*) | 27,602,722 | 25,923,291 |
| Profit / (loss) for the period | 17,342,677 | 11,316,334 |
| Distribution | 14,000,000 | 7,631,280 |
| Gross dividend per share (NGN) | 14.68 | 8.00 |
| Socfinaf's holding (%) | 66.38 | 65.23 |
Share capital : CFA 45,757,890,000
Socapalm is active in Cameroon in the production and processing of palm oil and the cultivation of rubber trees.
| Area (hectares) | Planted area | |||||
|---|---|---|---|---|---|---|
| At 31st December 2022 | Mature | Immature | Total | |||
| Rubber | 2,075 | 0 | 2,075 | |||
| Palm | 29,197 | 3,263 | 32,460 | |||
| 31,272 | 3,263 | 34,535 |
Concessions : 58,063 ha
Permanent staff at 31st December 2022 : 2,591
| Production and turnover | 2022 | 2021 |
|---|---|---|
| At 31st December | ||
| Production (tons) | ||
| Palm oil | 146,232 | 152,323 |
| Rubber (*) | 1,734 | 2,030 |
| Turnover (EUR 000) | 112,852 | 114,731 |
| Result (EUR 000) | 16,269 | 20,617 |
| Average selling price (EUR / kg) | ||
| Palm oil | 0.75 | 0.74 |
| Rubber | 0.82 | 1.14 |
| Rate EUR / CFA | 655.957 | 655.957 |
| Key figures (CFA million) | 2022 | 2021 |
| At 31st December | ||
| Fixed assets | 74,493 | 72,086 |
| Current assets | 20,762 | 17,580 |
| Equity (**) | 66,234 | 71,120 |
| Debts, provisions and third parties (**) | 29,022 | 18,546 |
| Profit / (loss) for the period | 10,672 | 13,524 |
| Distribution | 9,450 | 15,600 |
Socfinaf's holding (%) 67.46 67.46
(*) Agricultural production fully sold to SAFACAM.
Share capital : EUR 4,040,400
This French company owns 68.93% of Safacam.
Share capital : CFA 6,210,000,000
Safacam is active in Cameroon in the production and processing of palm oil and the cultivation of rubber trees.
| Area (hectares) | Planted area | |||||
|---|---|---|---|---|---|---|
| At 31st December 2022 | Mature | Immature | Total | |||
| Rubber | 5,230 | 76 | 5,306 | |||
| Palm | 3,420 | 864 | 4,284 | |||
| 8,650 | 940 | 9,590 |
Concessions and land owned : 17,690 ha Permanent staff at 31st December 2022 : 2,444
| Production and turnover | 2022 | 2021 |
|---|---|---|
| At 31st December | ||
| Production (tons) | ||
| Palm oil | 16,526 | 16,945 |
| Palm kernel oil | 8,531 | 10,197 |
| Rubber | 6,377 | 6,919 |
| Turnover (EUR 000) | 35,406 | 32,790 |
| Result (EUR 000) | 4,189 | 3,778 |
| Average selling price (EUR / kg) | ||
| Palm Products | 1.50 | 1.39 |
| Rubber | 1.66 | 1.33 |
| Rate EUR / CFA | 655.957 | 655.957 |
| Key figures (CFA million) | 2022 | 2021 |
| At 31st December | ||
| Fixed assets | 21,901 | 22,633 |
| Current assets | 8,251 | 9,184 |
| Equity (*) | 21,374 | 21,105 |
| Debts, provisions and third parties (*) | 8,778 | 10,712 |
| Profit / (loss) for the period | 2,748 | 2,478 |
| Distribution | 2,484 | 2,479 |
| Socfinaf's indirect holding (%) | 69.05 | 69.05 |
Share capital : CFA 2,601,690,000
SPFS is a 100% subsidiary of Socapalm. SPFS is a palm oil refining company.
Permanent staff at 31st December 2022 : 29
| Production and turnovers | 2022 | 2021 |
|---|---|---|
| At 31st December | ||
| Production (tons) | ||
| RBD | 7,719 | 8,431 |
| Turnover (EUR 000) | 10,648 | 9,445 |
| Result (EUR 000) | 1,986 | 500 |
| Average selling price (EUR / kg) | ||
| Refined packaged oil | 1.33 | 1.44 |
| Refined oil in bulk | 1.54 | 1.23 |
| Rate EUR / CFA | 655.957 | 655.957 |
| Key figures (CFA million) | 2022 | 2021 |
| At 31st December | ||
| Fixed assets | 938 | 1,087 |
| Current assets | 4,308 | 2,462 |
| Equity | 4,137 | 2,834 |
| Debts, provisions and third parties | 1,108 | 715 |
| Profit / (loss) for the period | 1,303 | 328 |
| Socfinaf's indirect holding (%) | 67.46 | 67.46 |
Share capital : STN 156,094,090
Agripalma is a company active in the production of palm oil on the island of São Tomé and Principe.
Key data
| Area (hectares) | Planted area | |||||
|---|---|---|---|---|---|---|
| At 31st December 2022 | Mature | Immature | Total | |||
| Palm | 2,100 | 0 | 2,100 | |||
| Concessions and land owned : 4,917 ha Permanent staff at 31st December 2022 : 848 |
||||||
| Production and turnover | 2022 | 2021 | ||||
| At 31st December | ||||||
| Production (tons) | ||||||
| Palm oil | 6,430 | 5,636 | ||||
| Turnover (EUR 000) | 7,782 | 4,777 | ||||
| Result (EUR 000) | 849 | -1,878 | ||||
| Average selling price (EUR / kg) | ||||||
| Palm oil | 1.21 | 0.85 | ||||
| Average rate EUR / STN | 24.50 | 24.50 | ||||
| Closing rate EUR / STN | 24.50 | 24.50 | ||||
| Key figures (STN million) | 2022 | 2021 | ||||
| At 31st December | ||||||
| Fixed assets | 691 | 728 | ||||
| Current assets | 103 | 58 | ||||
| Equity | 44 | 24 | ||||
| Debts, provisions and third parties | 750 | 762 | ||||
| Profit / (loss) for the period | 21 | -46 | ||||
| Socfinaf's indirect holding (%) | 88.00 | 88.00 |
Share capital : CDF 34,243,622,100
Brabanta is a Congolese company (DRC) active in the production of palm oil.
| Area (hectares) | Planted area | ||
|---|---|---|---|
| At 31st December 2022 | Mature | Immature | Total |
| Palm | 6,072 | 0 | 6,072 |
| Concessions : 8,380 ha Permanent staff at 31st December 2022 : 2,259 |
|||
| Production and turnover | 2022 | 2021 | |
| At 31st December | |||
| Production (tons) | |||
| Palm oil | 13,769 | 15,993 | |
| Turnover (EUR 000) | 16,366 | 13,117 | |
| Result (EUR 000) | -672 | -2,202 | |
| Average selling price (EUR / kg) | |||
| Palm oil | 1.19 | 0.82 | |
| Average rate EUR / CDF | 2,103 | 2,351 | |
| Closing rate EUR / CDF | 2,151 | 2,265 | |
| Key figures (CDF million) | 2022 | 2021 | |
| At 31st December | |||
| Fixed assets | 133,043 | 140,846 | |
| Current assets | 115,053 | 113,578 | |
| Equity (*) | 69,634 | 71,047 | |
| Debts, provisions and third parties (*) | 178,463 | 183,377 | |
| Profit / (loss) for the period | -1,413 | -5,175 | |
| Socfinaf's holding (%) | 100.00 | 99.80 |
Share capital : CHF 5,300,000
Sogescol FR is a Swiss company that sells rubber and palm oil.
The financial year ended on 31st December 2022 with a profit of USD 8,864,552. The Board of Directors will propose to the General Meeting of Shareholders a profit distribution of USD 8,000,000.
| 2022 | 2021 | |
|---|---|---|
| Average rate EUR / USD | 1.05 | 1.18 |
| Closing rate EUR / USD | 1.07 | 1.13 |
| Key figures (USD 000) | 2022 | 2021 |
| At 31st December | ||
| Fixed assets | 773 | 1,034 |
| Current assets | 50,991 | 51,544 |
| Equity (*) | 17,955 | 14,940 |
| Debts, provision and third parties (*) | 33,809 | 37,637 |
| Profit / (loss) for the period | 8,865 | 6,057 |
| Distribution | 8,000 | 6,000 |
| Gross dividend per share (USD) | 1,509 | 1,132 |
| Socfinaf's holding (%) | 50.00 | 50.00 |
Socfinco FR is a Swiss company, which provides services, studies and management of agro-industrial plantations. Socfinco FR covers the agro-industrial sector of palm oil and rubber.
The financial year ended 31st December 2022 shows a profit of EUR 8,833,675. The Board of Directors will propose to the General Meeting of Shareholders a profit distribution of EUR 8,000,000.
| Key figures (EUR 000) | 2022 | 2021 |
|---|---|---|
| At 31st December | ||
| Fixed assets | 4,309 | 5,974 |
| Current assets | 22,133 | 19,609 |
| Equity (*) | 16,432 | 15,598 |
| Debts, provisions and third parties (*) | 10,010 | 9,985 |
| Sales and services | 30,293 | 25,179 |
| Profit / (loss) for the period | 8,834 | 6,288 |
| Distribution | 8,000 | 8,000 |
| Gross dividend per share (EUR) | 6,154 | 6,154 |
| Socfinaf's holding (%) | 50.00 | 50.00 |
The average natural rubber price (TSR20 1st position on SGX) for the year 2022 is USD 1,548/T FOB Singapore compared to USD 1,677/T in 2021, i.e. a decrease of USD 129/T (-7.7%).
On the other hand, converted into Euro, the average for the year 2022 is EUR 1,469/T against EUR 1,417/T for the year 2021, i.e. an increase of 3.7% thanks to a strengthening of the dollar against the Euro.
After their strong increase in 2021 linked to the global economic recovery, natural rubber prices have remained sustained with monthly averages above USD 1,700/T over the first 4 months of 2022.
Russia's invasion of Ukraine at the end of February had a positive impact on natural rubber prices, which moved slightly above USD 1,800/T in the wake of soaring crude oil and other commodity prices.
Market sentiment turned bearish as from April onwards because of the Chinese government's "zero Covid" policy measures. These measures have severely affected the economy and mobility, reducing demand from the world's largest consumer of natural rubber.
At the same time, European sanctions against Russia, a major producer of synthetic rubber and tyre components, have led to production slowdowns in tyre factories, resulting in a de facto drop in demand for natural rubber.
In the summer of 2022, the energy crisis in Europe due to the effects of sanctions against Russia has had a negative impact on rubber demand for tyre manufacturers. The level of inflation in Europe and the US is also a concern for consumers who prefer to postpone their decision to buy new cars.
At the end of 2022 the tyre manufacturers, facing a slowdown in production in their factories and therefore an increase in stocks, requested their suppliers to reduce the long term contracts or to postpone shipments to the following months.
This slowdown in demand from the tyre industry has strongly affected natural rubber prices, which bottomed out at USD 1,151/T in October 2022.
The lifting of restrictions following the end of China's "zero-covid" policy in December 2022 allowed natural rubber prices to recover to around USD 1,400/T at the end of the year.
The situation in global logistics, which was severely disrupted in 2021 until the first half of 2022 by the lack of space on ships, significantly improved in the last quarter of the year.
In the latest figures published by the International Rubber Study Group (IRSG) in February 2023, the world natural rubber production in 2022 is estimated at 14.57 million tons, up 5.8% in 2021, while the world consumption is forecasted at 14.31 million tons, up 1.7% in 2021, resulting in a surplus of 264,000 tons at the end of 2022.
The TSR20 1st FOB Singapore position on SGX settled on 30 December 2022 at USD 1,302/T.
Natural rubber prices are expected to remain under pressure amidst conflict on the Ukrainian front, high global inflation and uncertain developments on Chinese growth.
Indeed, inflationary pressure from prolonged supply chain disruptions and high-energy costs will continue to threaten the global economic growth.
At the end of 2022 and this is expected to continue during the first half of 2023, the slowdown in global economic activity has had a strong impact on demand from tyre manufacturers. Faced with a drop in production in their factories, they have accumulated significant stocks, forcing them to reduce their long-term contracts and postpone shipments to the following months.
The evolution of China's economic growth in 2023 will be decisive for natural rubber prices, which are expected to fluctuate according to the indicators of the industrial health of the world's largest natural rubber consumer.
The major uncertainty related to the evolution of the Russian-Ukrainian crisis is expected to continue to influence the evolution of rubber prices; the latter being impacted by the rise in crude oil and energy prices.
Because of a slowdown in global economic growth and the arrival on the market of new large capacity vessels, freight rates have fallen sharply, particularly from South East Asian countries, making Asian rubbers more attractive than in 2021 and 2022, to the detriment of African rubber. Freight rates out of Africa are also expected to fall, but with a time lag.
For 2023, the IRSG estimates world production at 14.74 million tons (up 1.1%) and world demand at 14.61 million tons (up 2.1%), resulting in a rubber surplus of 129,000 tons, which would be half the surplus in 2022.
Rubber consumption would therefore be lower than production, supported by an expansion of volumes in several countries such as Côte d'Ivoire, Cambodia, Laos and Burma. By 2022, Côte d'Ivoire would be the world's third largest producer with 1.3 million tons, behind Thailand and Indonesia and ahead of Vietnam.
The TSR20 1st position FOB Singapore on SGX settled on 28 February 2023 at USD 1,362/T.
| 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2015 | 2005 | 1995 | |
|---|---|---|---|---|---|---|---|---|---|---|
| (*) | ||||||||||
| Indonesia | 47.9 | 46.5 | 44.7 | 42.8 | 44.2 | 41.6 | 36.8 | 33.4 | 14.1 | 4.2 |
| Malaysia | 18.7 | 18.3 | 18.1 | 19.1 | 19.9 | 19.5 | 19.9 | 20.0 | 15.0 | 7.8 |
| Other | 14.2 | 13.8 | 13.1 | 12.2 | 12.4 | 11.9 | 11.2 | 9.1 | 4.8 | 3.2 |
| TOTAL | 80.8 | 78.6 | 75.9 | 74.1 | 76.5 | 73.0 | 67.9 | 62.5 | 33.9 | 15.2 |
(*) Estimated (December 2022).
| Oct 2022 to Sep 2023 (*) |
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2015 | 2005 | 1995 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Palm | 80.3 | 78.6 | 75.9 | 74.1 | 76.5 | 73.0 | 67.9 | 62.5 | 33.9 | 15.2 |
| Soya | 61.2 | 59.8 | 60.1 | 58.6 | 56.8 | 56.8 | 53.9 | 48.8 | 33.6 | 20.2 |
| Rape | 28.7 | 26.6 | 26.9 | 25.3 | 24.9 | 25.6 | 25.4 | 26.3 | 16.2 | 10.8 |
| Sunflower | 20.9 | 20.1 | 18.9 | 21.3 | 20.7 | 19.0 | 19.0 | 15.1 | 9.7 | 8.7 |
| Palm kernel | 8.41 | 8.22 | 8.0 | 7.8 | 8.1 | 7.7 | 7.2 | 6.8 | 4.0 | 2.0 |
| Cotton | 4.51 | 4.35 | 4.4 | 4.6 | 4.6 | 4.7 | 4.2 | 4.7 | 5.0 | 3.9 |
| Peanut | 4.65 | 4.70 | 4.4 | 4.2 | 3.7 | 4.0 | 4.2 | 3.7 | 4.5 | 4.3 |
| Copra | 2.91 | 3.15 | 2.8 | 2.6 | 2.9 | 2.9 | 2.4 | 2.9 | 3.2 | 3.3 |
| TOTAL | 211.6 | 205.5 | 201.4 | 198.5 | 198.2 | 193.7 | 184.2 | 170.8 | 110.1 | 68.4 |
(*) Estimated (December 2022).
The average price for CIF Rotterdam crude palm oil in 2022 is USD 1,352/T compared to USD 1,195/T in 2021.
The year 2021 was marked by an almost uninterrupted rise in palm oil prices due to a much lower than expected supply. This contraction in supply, combined with a massive return in demand following the end of the containment measures, led to a very significant rise in palm oil prices in 2021.
This price increase continued into 2022. Indeed, the uncertainties regarding the global supply of vegetable oils were further accentuated during the first quarter. Firstly, in Malaysia, where the effects of the plan to accelerate the return of foreign workers to the plantations were slow to be felt. Then in Indonesia, which, worried about its domestic market, decided to restrict its palm oil exports at the end of January while global demand continued to rise.
At the end of February, the Russian-Ukrainian conflict put the vegetable oil market on edge. Ukraine alone traditionally supplied over 50% of the world's sunflower oil production. Buyers were forced to turn to alternative vegetable oils (soya, palm, rapeseed, etc.) whose prices soared. At the beginning of March, the CIF Rotterdam CPO broke through the historic USD 2,000/T threshold, i.e. an increase of almost 50% since the beginning of the year.
In April 2022, tensions rose again with Indonesia's decision to suspend palm oil exports in an already tight market.
The rationing of the overall supply of vegetable oils in a context where demand remained strong contributed to maintaining high price levels throughout most of the first half. The surge in oil prices, with a barrel of oil breaking the USD 120 mark on several occasions, also helped to support palm oil prices during this period.
The price surge ended in May with the easing of export restrictions in Indonesia. The level of palm oil stocks in the country was then close to 9 million tons. The world's largest producer therefore had no choice but to supply the international market by massively opening the floodgates for exports, thus creating strong downward pressure on prices.
The loosening of the grip on sunflower seed exports from the Black Sea has also helped to alleviate concerns about the overall supply of vegetable oils.
Prices thus fell back below the USD 1,000/T mark in September.
During the last quarter of 2022, despite abundant supply and high stock levels, palm oil prices held up well thanks to continued strong demand, particularly in Asia. At the end of December 2022, the CIF Rotterdam CPO was trading at around USD 1,030/T.
After an unprecedented decline at the height of the Covid pandemic in 2020, palm oil production increased in 2021 and 2022. The increase is expected to continue in 2023 with production exceeding 80 million tons.
However, several uncertainties weigh on palm oil production. Malaysia, the world's second largest producer, is facing a structural labour problem that could negatively affect its production figures. In addition, soaring fertiliser prices could lead growers to restrict their use, which would limit the expected increase in yields.
Indonesia, for its part, is increasing the number of announcements aimed at limiting the volumes of palm oil exported in order to satisfy its domestic market first. Palm oil consumption for the Indonesian biodiesel industry is also expected to increase as the country plans to move from the B30 mandate to the B35 mandate (i.e. 35% palm oil in biodiesel composition).
The area harvested for soybeans for the 2023 marketing year is expected to increase, and production forecasts for other oilseeds (rapeseed, sunflower, etc.) are also favourable, suggesting an abundant supply of vegetable oils on the markets in 2023.
Against the backdrop of the global economic slowdown, demand could show signs of weakening even though the main importing countries, led by India and China, are not expected to see a significant drop in consumption. In addition, demand should also be supported by the biofuel industry, thus preventing prices from falling too sharply.
The evolution of oil prices, the purchasing policies of importing countries, the implementation of tax incentives or customs barriers, will also play a determining role in the evolution of palm oil prices.
On 28 February 2023, the CIF Rotterdam CPO quotes at around USD 1,005/T.
The responsible management policy is based on the Group's three pillars of commitment, alongside its specific commitment to transparency: rural development, workers and local communities, and environment. These commitments form the basis of key initiatives aimed at improving long-term economic performance, social wellbeing, health, safety and natural resource management.
An implementation plan for this policy has been defined and implemented throughout 2022.
The efforts and actions undertaken by the Socfin Group in this area are detailed in a regularly updated dashboard as well as in a separate annual report ("Sustainable Development Report").
The responsible management policy, the dashboard and the annual sustainable development report are available on the Group's website.
| Area (hectares) | Rubber | Palm | |||
|---|---|---|---|---|---|
| At 31st December 2022 | |||||
| Immatures (by year of planting) | |||||
| 2022 | 391 | 755 | |||
| 2021 | 935 | 1,480 | |||
| 2020 | 1,300 | 1,105 | |||
| 2019 | 1,425 | 0 | |||
| 2018 | 1,795 | 0 | |||
| 2017 | 2,110 | 0 | |||
| 2016 | 606 | 0 | |||
| 2015 | 31 | 0 | |||
| 2014 | 13 | 0 | |||
| 2013 | 21 | 0 | |||
| Total immatures | 8,627 | 3,339 | |||
| Young | (from 8 to 11 years) | 12,683 | (from 4 to 7 years) | 19,851 | |
| Prime | (from 12 to 22 years) | 17,554 | (from 8 to 18 years) | 41,073 | |
| Old | (above 22 years) | 8,414 | (above 18 years) | 26,696 | |
| Total in production | 38,651 | 87,620 | |||
| TOTAL | 47,278 | 90,959 | |||
| Area (hectares) | 2022 | 2021 | 2020 | 2019 | 2018 |
| Palm | 90,959 | 91,004 | 91,207 | 91,220 | 91,099 |
| Rubber | 47,278 | 47,940 | 48,146 | 48,361 | 48,071 |
| TOTAL | 138,237 | 138,944 | 139,353 | 139,581 | 139,170 |
| Production | 2022 | 2021 | 2020 | 2019 | 2018 |
| Palm oil (tons) | 349,644 | 355,924 | 321,348 | 278,979 | 262,075 |
| Own production | 308,544 | 309,149 | 285,726 | 244,551 | 231,522 |
| Third party purchases | 41,100 | 46,775 | 35,623 | 34,428 | 30,554 |
| Rubber (tons) | 147,271 | 151,848 | 144,456 | 147,851 | 129,703 |
| Own production | 59,027 | 55,450 | 48,972 | 53,749 | 47,753 |
| Third party purchases | 88,243 | 96,397 | 95,484 | 94,102 | 81,950 |
| Seeds (thousands) | 4,495 | 3,362 | 1,413 | ||
| Own production | 4,495 | 3,362 | 1,413 |
| Turnover (EUR million) | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|
| Palm | 408 | 328 | 241 | 210 | 206 |
| Rubber | 222 | 196 | 157 | 164 | 135 |
| Other agricultural products | 0 | 1 | 1 | 0 | 0 |
| Other | 7 | 3 | 4 | 3 | 3 |
| TOTAL | 637 | 527 | 403 | 376 | 345 |
| Staff | 2022 | 2021 | 2020 | 2019 | 2018 |
| Average workforce | 25,453 | 24,596 | 23,291 | 24,166 | 22,707 |
| (EUR million) | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|
| Turnover | 637 | 527 | 403 | 376 | 345 |
| Operating income | 175 | 143 | 56 | 47 | 42 |
| Profit / (loss) for the period attributable to the Group |
76 | 72 | -4 | 4 | 5 |
| Net cash flows from operating activities |
190 | 154 | 91 | 65 | 91 |
| Free cash flows (*) | 136 | 93 | 30 | 9 | 6 |
(*) Free cash flows = cash flows from operating activities + cash flows from investing activities.
| (EUR million) | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|
| Bearer biological assets | 350 | 366 | 364 | 405 | 405 |
| Other non-current assets | 324 | 316 | 290 | 304 | 302 |
| Current assets | 230 | 209 | 171 | 169 | 140 |
| Total equity | 509 | 436 | 334 | 385 | 383 |
| Non-current liabilities | 196 | 274 | 182 | 197 | 142 |
| Current liabilities | 199 | 180 | 310 | 298 | 323 |
| (EUR) | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|
| Number of shares | 17,836,650 | 17,836,650 | 17,836,650 | 17,836,650 | 17,836,650 |
| Equity attributable to the owners of the Company |
384,444,515 | 315,276,676 | 224,895,450 | 272,328,282 | 272,815,410 |
| Undiluted net profit per share | 4.24 | 4.04 | -0.22 | 0.22 | 0.27 |
| Dividend per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Share price | |||||
| Minimum | 11.30 | 8.10 | 7.00 | 8.2 | 10.90 |
| Maximum | 15.80 | 12.40 | 12.60 | 12.2 | 16.90 |
| Closing | 12.10 | 12.00 | 11.10 | 12 | 11.40 |
| Market capitalisation (*) | 215,823,465 | 214,039,800 | 197,986,815 | 214,039,800 | 203,337,810 |
| Dividend paid / net profit attributable to the owners of the Company |
N.a. | N.a. | N.a. | N.a. | N.a. |
| Dividends / market capitalisation | N.a. | N.a. | N.a. | N.a. | N.a. |
| Market price / undiluted net profit per share |
2.86 | 2.97 | -51.03 | 55.60 | 42.68 |
(*) Market capitalisation is calculated by multiplying the number of shares by the closing share price.
Liquidation of Sodimex.
Sale of 5% of Management Associates to Socfin.
Socfinaf pays close attention to the evolution of the ten principles of corporate governance of the Luxembourg Stock Exchange. It commits to provide the necessary explanations for a comprehensive understanding on how the Company functions.
Corporate governance is a set of principles and rules whose main objective is to contribute to long-term value creation. It allows the Board to promote the interests of the Company and its shareholders while putting in place effective control systems, management of risks and conflicts of interests.
The Board of Directors adopted the Corporate Governance Chart on 21st November 2018. It was updated on 29th March 2023 and is available on the Group's website.
| Name | Nationality | Year of Birth |
Position | First nomination |
Term of office |
|---|---|---|---|---|---|
| Mr. Hubert Fabri Mr. Vincent Bolloré |
Belgian French |
1952 1952 |
Chairman (a) Director (a) |
AGM 1981 AGM 1993 |
AGM 2028 AGM 2023 |
| Bolloré Participations SE represented by Mr. Cyrille Bolloré |
French | 1985 | Director (a) | AGM 2018 | AGM 2024 |
| Mr. Gbenga Oyebode | Nigerian | 1959 | Director (a) | AGM 2011 | AGM 2023 |
| Mr. François Fabri | Belgian | 1984 | Managing Director (b) | AGM 2014 | AGM 2026 |
| Mr. Philippe Fabri | Belgian | 1988 | Director (b) | AGO 2020 | AGO 2026 |
| Mr. Frédéric Lemaire | Belgian | 1970 | Director (c) | AGM 2019 | AGM 2025 |
(a) Non-Executive Non-Independent Director
(b) Executive Non-Independent Director
(c) Independent Director
The term served as director by Mr. Vincent Bolloré expires this year. It will be proposed at the next Annual General Meeting to renew this mandate for six years until the Annual General Meeting of 2029.
The term served as director by Mr. Gbenga Oyebode expires this year. It will be proposed at the next Annual General Meeting to renew this mandate for six years until the Annual General Meeting of 2029.
Hubert Fabri Chairman
Positions and offices held in Luxembourg companies
• Chairman and director of the Board of Directors of Société Financière des Caoutchoucs "Socfin", Socfinaf and Socfinasia.
Director
• Director of Société Financière des Caoutchoucs "Socfin", Socfinaf and Socfinasia.
Director
Positions and offices held in Luxembourg companies
• Director of Socfinaf.
Positions and offices held in foreign companies
Director
Positions and offices held in Luxembourg companies
• Director of Socfinaf.
Positions and offices held in foreign companies
François Fabri Managing Director
Positions and offices held in Luxembourg companies
Positions and offices held in foreign companies
Director
Positions and offices held in Luxembourg companies
Director
Positions and offices held in Luxembourg companies
• Director of Socfinaf.
The Board of Directors proposes the appointment of the Directors at the Annual General Meeting of shareholders. It specifies the term of service and verifies that the Director meets the criteria for independence.
In the event of a vacancy due to death or following the resignation of one or more Directors, the remaining Directors will proceed to temporary co-optations. These co-optations will be subject to the approval of the Annual General Meeting at its next meeting. The Director appointed to replace another Director will complete the term of his predecessor.
The Board of Directors is the body responsible for the management of the Company and the control of day-today management. It acts in the interest of the Company.
The Board of Directors ensures that all financial and human resources are available and ensures that all the necessary structures are in place to achieve its objectives and ensure long-term value creation.
The Articles of Association empower the Board of Directors the power to perform all actions necessary to achieve the corporate purpose.
At least two for the year-end and mid-year evaluations. During the 2022 financial year, the Board of Directors met 4 times.
Periodic accounting situations; Portfolio movements; Inventory and valuation of the portfolio; Evolution of significant holdings; Management report; Investment projects; Corporate, social and environmental responsibility.
The Committee is composed of three members, of which 2 are independents and one of them assigned as President of the Audit Committee. The members of the Audit Committee are appointed for one year and are eligible for re-election. This Audit Committee is effective as of 1st January 2023 and has been in charge of the supervision of the preparation of the financial information for the year 2022.
The Board of Directors has proposed that it will be constituted as follows:
The appointment of the non-executive members will be confirmed at the General Meeting of Shareholders on 30 th May 2023.
The Audit Committee will assist the Board of Directors in its supervisory function and is responsible of the monitoring of the financial reporting, the audit process, the analysis and control of financial risks.
The Audit Committee shall meet three times a year.
The remuneration of the operational management of Socfinaf is set by the principal shareholders. The Board of Directors does not consider it necessary to set up a Remuneration Committee. Similarly, for practical reasons and due to the size of the Company, the Board of Directors has chosen not to set up a Nomination Committee.
The remuneration allocated to the members of the Board of Directors of Socfinaf for the financial year 2022 amounts to EUR 356,995 compared to EUR 863,648 for the financial year 2021.
The Directors of Socfinaf did not receive any other payment in shares (stock options).
On 31st December 2014, Socfinaf issued 1,474,200 new shares which brings to a total of 17,854,200 number of shares issued. All statements filed between 1st July 2011 and 31st December 2014 relate to the previous number of shares in place and the previous number of voting rights, i.e. 16,380,000.
At 31st December 2022, the share capital is represented by 17,836,650 shares.
| Shareholder | Number of shares held = Number of voting rights |
Percentage holding |
Date of notification |
|---|---|---|---|
| Socfin L-1650 Luxembourg |
10,497,046 | 58.85 | 01/02/2017 |
| Bolloré (a) F-29500 Ergué Gaberic |
80,642 | 0.49 (b) | 03/09/2014 |
| Compagnie du Cambodge (a) F-92800 Puteaux |
1,157,929 | 7.07 (b) | 03/09/2014 |
| Société Industrielle et Financière de l'Artois (a) F-92800 Puteaux |
176,636 | 1.08 (b) | 03/09/2014 |
| Compagnie des Glénans (a) F-29500 Ergué Gaberic |
58,993 | 0.36 (b) | 03/09/2014 |
| Total Bolloré (all categories combined, based on aggregate voting rights) |
1,474,200 | 9.00 (b) |
(a) = entities controlled by Vincent Bolloré.
(b) = before increase in share capital on 31st December 2014
| th May 2023 30 |
Annual General Meeting at 10 a.m. |
|---|---|
| End of September 2023 | Half year stand alone and consolidated results at 30th June 2023 |
| Mid-November 2023 | Interim Management statement for 3rd quarter of 2023 |
| End of March 2024 | Annual stand alone results at 31st December 2023 |
| Mid-April 2024 | Consolidated annual results at 31st December 2023 |
| Mid-May 2024 | Interim Management statement for the 1st quarter of 2024 |
| 28th May 2024 | Annual General Meeting at 10 a.m. |
The results of the Company are published on the website of the Luxembourg Stock Exchange www.bourse.lu under the heading "OAM" and on the website of the Company www.socfin.com.
Independent statutory auditor (Réviseur d'entreprises agréé) Ernst & Young "EY" 35E Avenue John F. Kennedy L-1855 Luxembourg.
In 2022, the audit fees amounted to EUR 758,845 VAT included.
The audit fees include all fees paid to the independent statutory auditor of the Group namely EY as well as those paid to member firms within EY network for the relevant years. No consulting work or other non-audit services have been performed by this firm in 2022 or in 2021.
The responsible management policy is based on the Group's three pillars of commitment, alongside its specific commitment to transparency: rural development, workers and local communities, and environment. These commitments form the basis of key initiatives aimed at improving long-term economic performance, social wellbeing, health, safety and natural resource management.
An implementation plan for this policy has been defined and implemented throughout 2022.
The efforts and actions undertaken by the Socfin Group in this area are detailed in a regularly updated dashboard as well as in a separate annual report ("Sustainable Development Report").
Pursuant to the Regulation 2016/347 of the European Commission of 10th March 2016 specifying the modalities for updating insider lists, a list of insiders has been drawn up and is updated continuously. The persons concerned have been informed of their inclusion on this list.
Directors' report on the consolidated financial statements presented by the Board of Directors to the Annual General Meeting of the Shareholders of 30th May 2023
Ladies and Gentlemen,
The consolidated financial statements at 31st December 2022 include the financial statements of Socfinaf, all subsidiaries and direct and indirect associate companies, the details of which are given in Note 2 of the notes to the consolidated financial statements.
As stated in Note 1 of the notes to the consolidated financial statements, the consolidated financial statements have been prepared in accordance with International Financial Reporting Standards or IFRS as adopted by the European Union. Socfinaf (the Group) adopted IFRS standards for the first time in 2005 and all the standards applicable to the Group at 31st December 2022 have been implemented.
For the 2022 financial year, the result attributable to the Group of the parent company amounted to EUR 75.6 million compared to EUR 72.0 million in 2021. This results in earnings per share of EUR 4.24 compared to EUR 4.04 in 2021.
Consolidated revenue amounted to EUR 637.3 million in 2022 compared to EUR 526.7 million in 2021 (increase of EUR 110.6 million). This increase in revenue is mainly due to the increase in prices for EUR 98.5 million and by variation of transactional currency versus Euro for EUR 13.0 million.
Likewise, the operating profit increased to EUR 175.3 million, compared to EUR 142.9 million in 2021.
Other financial income amounted to EUR 8.7 million compared to EUR 6.3 million in 2021 and consisted mainly of foreign exchange gains of EUR 8.0 million compared to EUR 3.7 million in 2021.
Financial expenses amounted to EUR 41.2 million compared to EUR 22.4 million in 2021 and consisted mainly of interest expense for EUR 15.9 million (EUR 14.9 million in 2021) and foreign exchange losses of EUR 24.6 million (EUR 6.9 million in 2021).
The tax expense increased. Income taxes amounted to EUR 39.8 million compared to EUR 28.9 million in 2021.
Profit for the period from associates attributable to the Group increased to EUR 11.3 million compared to EUR 7.3 million in 2021.
The assets of Socfinaf consist of:
Shareholders' equity amounted to EUR 384.4 million compared to EUR 315.3 million in 2021. This increase in shareholder's equity of EUR 69.2 million is mainly due to the profit for the period: EUR 75.6 million (2021: EUR 72.0 million) and to the change in the translation reserve for EUR -7.6 million.
On the basis of consolidated shareholders' equity, the net value per share attributable to the Group was EUR 21.55 compared to EUR 17.68 a year earlier. At 31st December 2022, the share price stood at EUR 12.10.
Current and non-current liabilities decreased to EUR 394.4 million compared to EUR 454.0 million a year earlier.
Financial debts decreased to EUR 202.7 million in 2022 compared to EUR 270.3 million in 2021. This mainly consist of loans to Socfinaf from Socfin for EUR 134.5 million, as well as the non current and current portion of bank loans for an amount of EUR 62.2 million.
Deferred tax liabilities decreased to EUR 9.2 million compared to EUR 11.4 million in 2021. Current tax liabilities increased to EUR 40.7 million compared to EUR 30.4 million in 2021.
Other liabilities include short-term advances from shareholders amounting to EUR 40.4 million.
At 31st December 2022, cash and cash equivalents amounted to EUR 52.9 million, a decrease of EUR 3.1 million for the year compared to an increase of EUR 24.7 million in the previous financial year.
Net cash flows from operating activities amounted to EUR 189.5 million during the financial year 2022 (EUR 154.3 million in 2021). It resulted mainly from self-financing capacity of EUR 208.4 million (EUR 175.4 million in 2021), EUR 39.8 million of income tax paid and EUR +5.3 million change in working capital.
Net cash flows from investing activities amounted to EUR -53.4 million (EUR -61.4 million in 2021). These activities are largely influenced by acquisitions of tangible fixed assets amounting to EUR 55.1 million (EUR 62.9 million in 2021).
Cash flows from financing activities amounted EUR 138.8 million (EUR 68.7 million in 2021), mainly due to net reimbursement of borrowings for EUR 92.6 million (compared to a net reimbursement in 2021 for EUR 33.8 million) and to the dividends paid for EUR 28.9 million (EUR 18.6 million in 2021).
Financial risk management policies are described in the notes to the consolidated financial statements of the Company (see Notes 24 and 33).
The results for the next financial year will depend, to a large extent, on factors which are external to the Group management, namely the political and economic conditions in the countries where the subsidiaries are established, the changes in the price of rubber and palm oil, and the price of the US dollar against the Euro. The Group, for its part, pursues its policy of keeping cost prices as low as possible and improving its production capacity.
The Company holds interests in subsidiaries operating in Africa.
Given the economic and political instability in some of the African countries (Sierra Leone, Liberia, Côte d'Ivoire, Ghana, Nigeria, Cameroon, São Tomé and DRC), these holdings present a risk in terms of exposure to political and economic changes.
In February 2022, a number of countries (including the US, UK and EU) imposed sanctions against certain entities and individuals in Russia as a result of the official recognition of the Donetsk People Republic and Lugansk People Republic by the Russian Federation. Announcements of potential additional sanctions have been made following military operations initiated by Russia against the Ukraine on 24th February 2022.
Due to these geopolitical tensions, there has been a significant increase in volatility on the securities and currency markets in 2022, as well as a significant depreciation of the ruble against the US dollar and the euro.
Although neither the company's performance and going concern nor operations, have been significantly impacted by the above during 2022, the Board of Directors continues to monitor the evolving situation and its impact on the financial position and results of the company.
On 24th February 2023, Socfinaf early repaid an amount of USD 14,750,000 i.e. EUR 13,828,989 to Socfin as a final reimbursement of the loan in USD.
The Board of Directors implements the corporate governance rules applicable in the Grand Duchy of Luxembourg in the Group's financial structure and reports.
Further information on how the rules are implemented is available in the corporate governance statement in the annual report and in the management report on the Company's stand alone financial statements.
The segregation of operational, commercial and financial functions implemented at each level of the Group reinforces the independence of internal control.
These different functions ensure the completeness and reliability of the information which is within their areas of responsibility. They provide regular updates of the completeness of information to local managers and to the Group's headquarters (agricultural and industrial production, trade, human resources, finance, etc).
The operational entities have a large degree of autonomy in their management due to geographical distances. They are, in particular, responsible for the implementation of an internal control system adapted to the nature and extent of their activity, the optimisation of their operations and financial performances, the protection of their assets and management of their risks.
This autonomy makes it possible for the entities to be more accountable and to ensure the adequacy between their practices and the legal framework of their host country.
The Human Resources Management policy of the top management of the entities within the Group is centralised at the Group's headquarters. It contributes to the smooth running of an effective internal control system through the independence of recruitment, the harmonisation of the segregated functions, annual evaluations and training programs.
The operational, commercial and financial functions centrally define a set of standard reports which ensure the homogeneity of the presentation of information originating from the subsidiaries.
The treasury department organises, supervises and controls the reporting of daily information and weekly indicators of the subsidiaries and, in particular, the cash flow position, the evolution of net debt and the expenses related to the investments.
The financial department organises, supervises and controls the reporting of monthly accounting, budgetary and financial information and distributes condensed reports for use by the Group's operational management.
Twice per year, it includes this information in the long-term development plan of the subsidiaries. It also ensures the implementation of the financial decisions taken by the Board of Directors of the subsidiaries.
The consolidated financial statements are prepared on a half-yearly basis. They are audited annually by the external auditors as part of a financial audit of subsidiaries, which covers both the statutory accounts of the entities in the scope of consolidation and the consolidated financial statements.
Once approved by the Board of Directors, they are published.
The consolidation department of the Group guarantees homogeneity and treatment monitoring for all companies within the scope of consolidation. It strictly adheres to the accounting standards in force relating to consolidation operations. It uses a standard consolidation tool to ensure the secure processing of information feedback from subsidiaries, the transparency and relevance of automatic consolidation processes and the consistency of presentation of accounting aggregates in the annual report. Lastly, due to the complexity of the accounting standards in force and the many specificities related to their implementation, the consolidation service centralises the adjustments specific to the valuation rules applicable to the consolidated financial statements.
The responsible management policy is based on the Group's three pillars of commitment, alongside its specific commitment to transparency: rural development, workers and local communities, and environment. These commitments form the basis of key initiatives aimed at improving long-term economic performance, social wellbeing, health, safety and natural resource management.
An implementation plan for this policy has been defined and implemented throughout 2022.
The efforts and actions undertaken by the Socfin Group in this area are detailed in a regularly updated dashboard as well as in a separate annual report ("Sustainable Development Report").
The responsible management policy, the dashboard and the annual sustainable development report are available on the Group's website.
The Board of Directors
| EUR | Note | 31/12/2022 | 31/12/2021 |
|---|---|---|---|
| ASSETS | |||
| Non-Current Assets | |||
| Right-of-use assets | 3 | 8,169,573 | 7,484,998 |
| Intangible assets | 4 | 1,449,899 | 1,958,916 |
| Property, plant and equipment | 5 | 277,533,909 | 269,676,822 |
| Biological assets | 6 | 350,244,763 | 365,903,978 |
| Investments in associates | 10 | 27,288,358 | 23,619,982 |
| Financial assets at fair value through other comprehensive income | 11 | 300,038 | 38 |
| Long-term advances | 1,664,769 | 1,745,719 | |
| Deferred tax assets | 12 | 4,513,651 | 9,421,066 |
| Other non-current assets | 2,619,576 | 1,743,807 | |
| 673,784,536 | 681,555,326 | ||
| Current Assets | |||
| Inventories | 15 | 105,769,814 | 92,844,873 |
| Current biological assets | 6 | 3,005,618 | 2,423,966 |
| Trade receivables | 16 | 23,519,223 | 28,185,332 |
| Other receivables | 17 | 21,440,996 | 8,995,522 |
| Current tax assets | 13 | 12,438,610 | 13,378,526 |
| Cash and cash equivalents | 18 | 63,638,033 | 63,091,772 |
| 229,812,294 | 208,919,991 | ||
| TOTAL ASSETS | 903,596,830 | 890,475,317 |
| EUR | Note | 31/12/2022 | 31/12/2021 |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity attributable to the owners of the Parent | |||
| Share capital | 19 | 35,673,300 | 35,673,300 |
| Share premium | 19 | 87,453,866 | 87,453,866 |
| Legal reserve | 20 | 3,567,330 | 3,567,330 |
| Consolidated reserves | 253,235,800 | 180,034,758 | |
| Translation reserves | -71,070,327 | -63,481,543 | |
| Profit / (loss) for the period | 75,584,548 | 72,028,965 | |
| 384,444,517 | 315,276,676 | ||
| Non-controlling interests | 9 | 124,791,747 | 121,205,286 |
| Total Equity | 509,236,264 | 436,481,962 | |
| Non-Current Liabilities | |||
| Deferred tax liabilities | 12 | 9,219,942 | 11,408,890 |
| Employee Benefits Obligations | 21 | 12,366,549 | 12,054,536 |
| Long-term debt, net of current portion | 22 | 159,582,281 | 234,679,480 |
| Long-term lease liabilities | 3 | 8,674,141 | 8,285,305 |
| Other payables | 23 | 6,005,420 | 7,401,155 |
| 195,848,333 | 273,829,366 | ||
| Current Liabilities | |||
| Short-term debt and current portion of long-term debt | 22 | 43,071,845 | 35,588,183 |
| Short-term lease liabilities | 3 | 1,532,064 | 1,105,090 |
| Trade payables | 23 | 50,186,437 | 43,847,861 |
| Current tax liabilities | 13 | 40,651,438 | 30,408,824 |
| Provisions | 622,480 | 337,462 | |
| Other payables | 23 | 62,447,969 | 68,876,569 |
| 198,512,233 | 180,163,989 | ||
| TOTAL EQUITY AND LIABILITIES | 903,596,830 | 890,475,317 |
| EUR | Note | 2022 | 2021 |
|---|---|---|---|
| Revenue | 32 | 637,341,934 | 526,702,437 |
| Work performed by entity and capitalised | 9,969,880 | 11,960,180 | |
| Change in inventories of finished products and work in progress | -5,109,712 | 753,008 | |
| Other operational income | 5,844,939 | 5,393,496 | |
| Raw materials and consumables used | 32 | -182,873,108 | -145,224,395 |
| Other expenses | 32 | -132,268,074 | -114,534,558 |
| Staff costs | 25 | -74,266,738 | -69,886,384 |
| Depreciation and impairment expense | 7 | -58,213,723 | -55,738,718 |
| Other operating expenses | 32 | -25,095,805 | -16,546,165 |
| Operating profit / (loss) | 175,329,593 | 142,878,901 | |
| Other financial income | 26 | 8,653,915 | 6,324,778 |
| Gain on disposals | 76,466 | 803,432 | |
| Loss on disposals | -1,833,410 | -3,604,256 | |
| Financial expenses | 27 | -41,163,373 | -22,363,108 |
| Profit / (loss) before taxes | 141,063,191 | 124,039,747 | |
| Income tax expense | 14 | -39,796,407 | -28,856,992 |
| Deferred tax (expense) / income | 14 | -2,914,673 | -718,754 |
| Share of the Group in the result from associates | 10 | 11,297,778 | 7,264,011 |
| Profit / (loss) for the period | 109,649,889 | 101,728,012 | |
| Profit / (loss) attributable to non-controlling interests | 34,065,341 | 29,699,047 | |
| Profit / (loss) attributable to the owners of the Parent | 75,584,548 | 72,028,965 | |
| Basic earnings per share undiluted | 28 | 4.24 | 4.04 |
| Number of Socfinaf shares | 17,836,650 | 17,836,650 | |
| Basic earnings per share | 4.24 | 4.04 | |
| Diluted earnings per share | 4.24 | 4.04 |
| EUR | Note | 2022 | 2021 |
|---|---|---|---|
| Profit / (loss) for the period | 109,649,889 | 101,728,012 | |
| Other comprehensive income | |||
| Actuarial gains / (losses) | 21 | 902,556 | 2,011,089 |
| Deferred tax on actuarial losses and gains | -187,624 | -568,972 | |
| Subtotal of items that cannot be reclassified to profit or loss |
714,932 | 1,442,117 | |
| Gains / (losses) on exchange differences on translation of subsidiaries |
-7,801,046 | 18,221,626 | |
| Share of other comprehensive income related to associates | 443,736 | 296,273 | |
| Subtotal of items eligible for reclassification to profit or loss |
-7,357,310 | 18,517,899 | |
| Total other comprehensive income | -6,642,378 | 19,960,016 | |
| Comprehensive income | 103,007,511 | 121,688,028 | |
| Comprehensive income attributable to non-controlling interests |
33,205,681 | 31,337,419 | |
| Comprehensive income attributable to the owners of the Parent |
69,801,829 | 90,350,609 |
| EUR | Note | 2022 | 2021 |
|---|---|---|---|
| Operating activities | |||
| Profit / (loss) attributable to the owners of the Parent Profit / (loss) attributable to non-controlling shareholders |
75,584,548 34,065,341 |
72,028,965 29,699,047 |
|
| Income from associates | 10 | -11,297,777 | -7,264,009 |
| Dividends received from associates | 10 | 7,126,982 | 3,383,509 |
| Fair value of agricultural production | -5,789,099 | -8,090,073 | |
| Other adjustments having no impact on cash position | -1,202,239 | -1,352,609 | |
| Depreciation and impairment expense | 7 | 58,213,722 | 55,738,719 |
| Provisions and allowances | 7,278,229 | -1,120,117 | |
| Net loss on disposals of assets | 1,758,494 | 2,799,747 | |
| Income tax expense and deferred tax | 14 | 42,711,079 | 29,575,745 |
| Cash flows from operating activities | 208,449,280 | 175,398,924 | |
| Interest expense | 26, 27 | 15,590,970 | 14,683,522 |
| Income tax paid | 14 | -39,796,406 | -28,856,992 |
| Change in inventory | -8,943,177 | -3,417,054 | |
| Change in trade and other receivables | -13,221,521 | 6,878,991 | |
| Change in trade and other payables | 29,213,136 | -10,288,803 | |
| Change in accruals and prepayments | -1,758,263 | -118,044 | |
| Change in working capital requirement | 5,290,175 | -6,944,910 | |
| Net cash flows from operating activities | 189,534,019 | 154,280,544 | |
| Investing activities Acquisitions / disposals of intangible assets |
-32,003 | -3,696 | |
| Acquisitions of property, plant and equipment and biological assets | 5, 6 | -55,144,750 | -62,916,100 |
| Disposals of property, plant and equipment | 1,655,010 | 1,375,153 | |
| Acquisitions / disposals of financial assets | 134,933 | 142,451 | |
| Net cash flows from investing activities | -53,386,810 | -61,402,192 | |
| Financing activities | |||
| Dividends paid to non-controlling shareholders Proceeds from borrowings |
9 22 |
-28,941,422 7,030,288 |
-18,586,503 22,778,375 |
| Repayment of borrowings | 22 | -99,581,546 | -56,595,266 |
| Repayment of lease liabilities | 22 | -1,737,556 | -1,595,202 |
| Interest paid | 26, 27 | -15,590,970 | -14,683,522 |
| Net cash flows from financing activities | -138,821,206 | -68,682,118 | |
| Effect of exchange rate fluctuations | -446,315 | 551,541 | |
| Net cash flow | -3,120,312 | 24,747,775 | |
| Cash and cash equivalents at 1st January | 18 | 56,062,445 | 31,314,670 |
| Cash and cash equivalents at 31st December | 18 | 52,942,133 | 56,062,445 |
| Net increase / (decrease) in cash and cash equivalents | -3,120,312 | 24,747,775 |
| EUR | Share capital |
Share premium |
Legal reserve |
Translation reserves |
Consolidated reserves |
Equity attributable to the owners of the Parent |
Non controlling interests |
TOTAL EQUITY |
|---|---|---|---|---|---|---|---|---|
| Balance at 1st January 2021 | 35,673,300 | 87,453,866 | 3,567,330 | -80,401,590 | 178,602,545 | 224,895,451 | 109,141,208 | 334,036,659 |
| Profit / (loss) for the period | 72,028,965 | 72,028,965 | 29,699,047 | 101,728,012 | ||||
| Actuarial (losses) / gains | 1,105,324 | 1,105,324 | 336,793 | 1,442,117 | ||||
| Foreign currency translation adjustments | 16,920,047 | 0 | 16,920,047 | 1,301,579 | 18,221,626 | |||
| Share in other comprehensive income from associates | 296,273 | 296,273 | 0 | 296,273 | ||||
| Other comprehensive income | 16,920,047 | 73,430,562 | 90,350,609 | 31,337,419 | 121,688,028 | |||
| Dividends | 0 | 0 | -19,207,377 | -19,207,377 | ||||
| Interim dividends | 0 | 0 | -147,164 | -147,164 | ||||
| Other movements | 0 | 30,617 | 30,617 | 81,200 | 111,817 | |||
| Transactions with shareholders | 0 | 30,617 | 30,617 | -19,273,341 | -19,242,724 | |||
| Balance at 31st December 2021 | 35,673,300 | 87,453,866 | 3,567,330 | -63,481,543 | 252,063,723 | 315,276,676 | 121,205,286 | 436,481,962 |
| Balance at 1st January 2022 | 35,673,300 | 87,453,866 | 3,567,330 | -63,481,543 | 252,063,723 | 315,276,676 | 121,205,286 | 436,481,962 |
| Profit / (loss) for the period | 75,584,548 | 75,584,548 | 34,065,341 | 109,649,889 | ||||
| Actuarial (losses) / gains | 620,360 | 620,360 | 94,572 | 714,932 | ||||
| Foreign currency translation adjustments | -6,846,814 | 0 | -6,846,814 | -954,232 | -7,801,046 | |||
| Share in other comprehensive income from associates | 443,736 | 443,736 | 0 | 443,736 | ||||
| Other comprehensive income | -6,846,814 | 76,648,644 | 69,801,830 | 33,205,681 | 103,007,511 | |||
| Dividends | 0 | 0 | -22,312,967 | -22,312,967 | ||||
| Interim dividends | 0 | 0 | -6,485,266 | -6,485,266 | ||||
| Other movements (Notes 2, 9) |
-741,970 | 107,981 | -633,989 | -820,987 | -1,454,976 | |||
| Transactions with shareholders | -741,970 | 107,981 | -633,989 | -29,619,220 | -30,253,209 | |||
| Balance at 31st December 2022 | 35,673,300 | 87,453,866 | 3,567,330 | -71,070,327 | 328,820,348 | 384,444,517 | 124,791,747 | 509,236,264 |
Socfinaf S.A. (the "Company") was incorporated on 22nd October 1961. Its corporate purpose qualifies it as a holding company "soparfi" since the Annual General Meeting of 10th January 2011. The registered office is established at 4, avenue Guillaume, L-1650 in Luxembourg.
The main activity of the Company and its subsidiaries (the "Group") is the management of a portfolio of holdings mainly focused on the exploitation of tropical oil palm and rubber plantations in Africa.
Socfinaf is controlled by Société Financière des Caoutchoucs, abbreviated as "Socfin" which is the largest entity that consolidates. The registered office of the latter company is also located at 4, avenue Guillaume, L-1650 in Luxembourg.
The Company is listed on the Luxembourg Stock Exchange under ISIN code: LU0056569402 and is registered in the commercial register under the number B6225.
The consolidated financial statements have been prepared on a going concern basis and in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and the consolidated financial statements are presented in euros and rounded to the nearest whole number, the euro being the functional currency of the parent company Socfinaf and of the Group's presentation currency.
On 29th March 2023, the Board of Directors approved the consolidated financial statements.
In conformity with the current legislation existing in the Grand Duchy of Luxembourg, the financial statements will be approved by the shareholders during the Annual General Meeting. The official version of the accounts is the ESEF version available with the Officially Appointed Mechanism (OAM) tool.
The Group does not expect the adoption of the standards and amendments described below to have a material impact on its consolidated financial statements, nor anticipate early adoption of new accounting standards, amendments and interpretations.
On 18th May 2017, the IASB issued IFRS 17 "Insurance Contracts", which establishes principles for the recognition, measurement and presentation of insurance contracts. Under IFRS 17, insurance performance should be measured at its current execution value and provide a more consistent measurement and presentation method for all types of insurance contracts. IFRS 17 replaces IFRS 4 "Insurance contracts" and its interpretations. It is effective as of 1 st January 2023 and early adoption is permitted if IFRS 15 "Revenue from Contracts with Customers" and IFRS 9 "Financial Instruments" have been applied. On 9th December 2021, the IASB issued amendments to IFRS 17, aimed at helping entities to avoid temporary accounting mismatches between financial assets and insurance contract liabilities.
On 7th May 2021, the IASB published amendments to IAS 12 "Deferred Tax related to Assets and Liabilities arising from a Single Transaction". The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. They are effective for financial years beginning on or after 1st January 2023 and are to be applied retrospectively, with early adoption permitted.
On 12th February 2021, the IASB issued amendments to IAS 1, IFRS Practice Statement 2 "Making Judgments about Materiality" and IAS 8. The amendments are intended to assist preparers in determining the accounting policies to be presented in their financial statements, to further enhance the importance in determining the accounting policies, and to distinguish changes in accounting estimates from changes in accounting policies. They are effective for financial years beginning on or after 1st January 2023 and are to be applied prospectively, with early adoption permitted.
On 23rd January 2020, the IASB published amendments to IAS 1 "Presentation of Financial Statements" on the classification of liabilities as current and non-current in order to establish a more general approach to the classification of liabilities under IAS 1, based on an analysis of contracts existing at the balance sheet date. The amendments include clarification of the requirements for classifying liabilities that a company could settle by converting them into equity. On 15th July 2020, the IASB deferred the effective date of the amendments. On 31st October 2022, the IASB issued "Non-current Liabilities with Covenants" to clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments are effective for reporting periods beginning on or after 1st January 2024. The Group does not expect the adoption of these amendments to have a material impact on its consolidated financial statements.
On 22nd September 2022, the IASB issued amendments to IFRS 16 "Lease Liability in a Sale and Leaseback", that clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for a sale. The amendment does not change the accounting for leases unrelated to sale and leaseback transactions. The amendment applies retrospectively to annual reporting periods beginning on or after 1st January 2024, with early adoption permitted. The Group does not expect the adoption of these amendments to have a material impact on its consolidated financial statements.
The consolidated financial statements are presented in euros (EUR or €). They are prepared on the basis of historical cost with the exception of the following assets:
Biological assets (current) (IAS 2, IAS 41), derivative instruments and securities measured at fair value through other comprehensive income are recognised at fair value;
Property, plant and equipment acquired as part of a business combination (IFRS 3) are measured initially at their fair value at the date of acquisition.
The accounting principles and rules are applied in a consistent and permanent way within the Group. The consolidated financial statements are prepared for the accounting year ending 31st December 2022 and are presented before the Annual General Meeting of shareholders approving the allocation of the parent company's income.
As of 1st January 2022, the Group adopted the following amendments without any material impact on the Group's consolidated financial statements:
Amendment to IFRS 3 Business Combinations - reference to the Conceptual Framework: the amendments updated the reference to the Conceptual Framework for Financial Reporting, added a reference to IAS 37 or IFRIC 21 when a company identifies the liabilities assumed in a business combination, and stated that an acquirer should not recognise contingent assets acquired in a business combination.
Amendment IAS 16 Property, Plant and Equipment: the amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company should recognise such sales proceeds and related cost in profit or loss.
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: Onerous Contracts — Cost of Fulfilling a Contract: these amendments specify which costs a company includes when assessing whether a contract will be loss-making.
Annual Improvements to IFRS Standards 2018–2020. These amendments concern IFRS 1, IFRS 9, IFRS 16 and IAS 41:
• IFRS 1 (1st time adopter): allows a subsidiary to measure translation differences using the amounts reported by its parent, based on the parent's date of transition to IFRS
• IFRS 16: removal from the illustrative examples of the illustration of the reimbursement of leasehold improvements by the lessor
• IFRS 9: the amendment clarifies which fees an entity includes when it applies the "10 per cent" test in paragraph B3.3.6 of IFRS 9 in assessing whether to derecognise a financial liability
• IAS 41: the amendment removes the requirement in IAS 41.22 for entities to exclude taxation cash flows when measuring the fair value of a biological asset using a present value technique.
The consolidated financial statements include the financial statements of the parent company Socfinaf as well as those of the companies controlled by the parent ("subsidiaries") and those of the companies in which Socfinaf has exercised significant influence ("associates"), all of which constitute the "Group".
All companies included in the scope of consolidation as at 31st December 2022 close their accounts on 31st December.
a) Subsidiaries
In accordance with IFRS 10, an investor has control when three conditions are fulfilled:
Currently, the Group holds the majority of the voting rights in the entities.
Income and expenses from subsidiaries acquired or sold during the year are included in the consolidated income statement, respectively, from the date of acquisition to the date of disposal.
Profit or loss and each component of other comprehensive income are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
Where appropriate, restatements are made to the financial statements of the subsidiaries to align the accounting principles used with those of other companies in the scope of consolidation.
All intra-group balances and transactions are eliminated upon consolidation.
If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any residual gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.
b) Investments in associates and joint ventures
An associate is a company over which the Group exercises significant influence through its participation in the financial and operational decisions of this company, but over which it has no control nor joint control. Significant influence is presumed when the Group holds, directly or indirectly through its subsidiaries, between 20% and 50% of the voting rights. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement (i.e. decisions require unanimous consent of the parties sharing control).
Associates and joint ventures are accounted for using the equity method. Under this method, the Group's interest in the associate and joint venture is initially recognised at cost in the statement of financial position and subsequently adjusted to recognise the Group's share of movements in profit and loss and other comprehensive income.
The statement of profit or loss reflects the Group's share of the results of operations of the associate or joint venture. Any change in other comprehensive income of those investees is presented as part of the Group's other comprehensive income. Unrealised gains and losses resulting from transactions between the Group and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.
Investments in associates and joint ventures are included in the consolidated financial statements using the equity method from the date on which significant influence begins until the date when this influence ceases. The carrying amount of positive goodwill that results from the acquisition of associates and joint ventures is included in the carrying amount of the investment and is not tested for impairment separately. An impairment test is performed if an objective index of impairment is identified. Impairment is recognised, if necessary, in the income statement under the heading "Share of the Group in the result from associates".
The list of subsidiaries and associated companies (including joint ventures) of the Group is presented in Note 2.
A change in accounting policy is applied only if it meets the requirements of a standard or interpretation or permits more reliable and relevant information. Changes in accounting policies are accounted for retrospectively, except in the case of transitional provisions specific to the standard or interpretation. A material error, when discovered, is also adjusted retrospectively.
Uncertainties inherent in the activity require the use of estimates when preparing financial statements. The estimates are based on judgments intended to give a reasonable assessment of the latest reliable information available. An estimate is revised to reflect changes in circumstances, new information available and the effects of experience.
IFRS 3 "Business Combinations" provides the accounting basis for recognising business combinations and changes in interests in subsidiaries after obtaining control.
For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree's identifiable net assets.
Changes in interest in a subsidiary that do not result in loss of control are accounted for as equity transactions.
Goodwill is the difference on the date of acquisition between the fair value of the consideration given in exchange for taking control, the value of non-controlling interests, the fair value of previous equity investments and the fair value of identifiable assets and liabilities and contingent liabilities of the acquiree.
When disposing of a subsidiary, the residual amount of goodwill attributable to the subsidiary is included in the calculation of the result of disposal.
Gain on a bargain purchase represents the excess of the Group's interest in the fair value of identifiable assets and liabilities and the contingent liabilities of a subsidiary or associate on the cost of acquisition on the acquisition date.
To the extent that gain on a bargain purchase remains after considering and reassessing the fair value of identifiable assets and liabilities and contingent liabilities of a subsidiary or associate, it is recognised directly as an income in the income statement.
In the financial statements of Socfinaf and of each subsidiary, transactions in foreign currency are recorded, upon initial recognition, in the functional currency of the company concerned by applying the exchange rate in force on the transaction date. At closing, monetary assets and liabilities denominated in foreign currencies are converted on the last day of the year. Gains and losses arising from the realisation or translation of monetary items denominated in foreign currencies are recorded in the income statement for the year.
On consolidation, the assets and liabilities of companies whose accounts are held in a currency other than the euro are translated into euros at the exchange rate prevailing on the closing date. Income and expenses are converted into euros at the average exchange rate for the year. Any exchange differences are classified as equity under "Translation reserves". In the event of a disposal, the translation reserves relating to the company concerned are recognised in the income statement for the year in which the sale occurred.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.
The following exchange rates have been used for the conversion of the consolidated financial statements:
| 1 euro equals to: | Closing rate | Average rate | ||
|---|---|---|---|---|
| 31/12/2022 | 31/12/2021 | 2022 | 2021 | |
| Euro | 1.000 | 1.000 | 1.000 | 1.000 |
| CFA franc | 655.957 | 655.957 | 655.957 | 655.957 |
| Ghanaian cedi | 9.1472 | 6.8025 | 8.4184 | 6.8705 |
| Nigerian naira | 478.92 | 467.50 | 445.11 | 471.97 |
| Dobra of São Tomé | 24.50 | 24.50 | 24.50 | 24.50 |
| Congolese franc | 2,151 | 2,265 | 2,103 | 2,351 |
| American dollar | 1.0666 | 1.1326 | 1.0479 | 1.1809 |
Intangible assets are stated at their acquisition cost less accumulated depreciation and any impairment losses.
Amortisation is applied on a straight-line basis based on an estimate of the useful life of the asset in question. Intangible assets are not subject to revaluation. When the recoverable value of an asset is lower than its book value, the latter is reduced to reflect this loss in value.
The estimated useful lives are as follows:
| Patents | 3 to 5 years |
|---|---|
| Other intangible assets | 3 to 5 years |
| Software | 3 to 5 years |
| Concessions | Length of the concessions |
Amortisation starts from the date of bringing the asset into use.
Gains or losses arising on derecognition of assets (difference between the disposal proceeds and the carrying amount of the asset) are included in the income statement when assets are derecognised.
Tangible fixed assets are recorded at their acquisition cost less accumulated amortisation and any impairment losses.
Property, plant and equipment in progress is carried at cost less any identified impairment.
Depreciation is applied on a straight-line basis based on an estimate of the useful life for each significant component of the asset in question. When the recoverable value of an asset is lower than its book value, the latter is reduced to reflect this loss in value.
The estimated useful lives are as follows:
| Buildings | 20 to 50 years |
|---|---|
| Technical installations | 3 to 20 years |
| Furniture, vehicles and others | 3 to 20 years |
Depreciation starting from the date that the assets are brought into use.
Land is not subject to depreciation.
Gains or losses arising on derecognition of assets (difference between the disposal proceeds and the carrying amount of the asset) are included in the income statement when assets are derecognised.
The Group has biological assets in Africa. Bearer plants, mainly consisting of palm oil and rubber plantations, are valued by using the cost model, according to the principles defined in IAS 16 "Tangible fixed assets".
Biological assets at the time of harvest, in particular for palm bunches, palm oil and rubber, are evaluated according to the principles defined by IAS 41 "Agriculture".
Producer biological assets are recorded at acquisition cost, less accumulated amortisation and any impairment losses.
Depreciation is applied according to the straight-line method based on an estimate of the useful life. When the recoverable amount of an asset is less than its carrying amount, the carrying amount is reduced to reflect that impairment.
The estimated useful lives are as follows:
| Bearer plants – Palm | 20 to 26 years |
|---|---|
| Bearer plants - Rubber | 20 to 33 years |
Depreciation starting date is the date of transfer of biological assets in production (asset being mature). This transfer takes place in the fourth year after palm oil tree planting and in the seventh year after rubber tree planting. For each entity, the operating period can be adapted according to the particular circumstances.
Agricultural production at harvest is valued at fair value less estimated costs necessary to complete the sale.
There are no observable data for agricultural production (palm harvest, latex). The World Bank publishes price forecasts for dry rubber (finished product). These forecasts are based on the RSS3 grade (smoked sheet) that is not produced by the Group. Lastly, and even more so, there are no observable prospective data relating to the Group's agricultural production. The price of a standard product in a global market is not sufficiently representative of the economic reality in which the various entities of the Group intervene. This price cannot be used as a reference for valuation.
As a result, each entity determines the fair value of agricultural production based on actual market prices obtained over the past year.
The Group considers produce that grows on mature plantations (oil in the palm fruits and produce of rubber) as biological assets, in accordance with IAS 41 principles. This produce is measured at fair value until the point of harvest. Any resultant gains or losses arising from changes in fair value are recognised in the income statement.
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets (mainly IT equipment), for which payments associated are recognised as an expense in the income statement. The Group recognises lease liabilities to make lease payments and right-ofuse assets representing the right to use the underlying assets.
The Group leases offices and agricultural land for terms ranging from 1 to 99 years, as well as vehicles and equipment for terms ranging from 1 month to 5 years.
The Group's lease contracts are standard contracts that do not include additional non-leasing components, except for some vehicle lease contracts that include a maintenance service. The Group has used the practical expedient that allows not separating the lease component from the non-lease component for these contracts.
Assets and liabilities related to lease contracts are initially measured at the present value of the fixed payments including in-substance fixed payments less any lease incentives receivable. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. To this purpose, management considers all facts and circumstances that may create an incentive to exercise a renewal option or not to exercise an early termination option. The lease liability is remeasured if there is a change in the lease term, in the lease payment or in the assessment of an option to purchase the underlying asset.
As the implicit interest rate is not known for all the Group's contracts, the incremental borrowing rate was used to discount the lease payments. The incremental borrowing rate is the rate that the lessee would have to pay to borrow, for a similar term and with a similar guarantee, the funds necessary to acquire an asset of similar value to the asset under the right-of-use in a similar economic environment.
In determining the incremental borrowing rate, the Group:
where possible, uses the most recent financing received by the lessee as a starting point, adjusted to reflect the change in financing conditions since the financing was received;
uses a build-up approach starting with a risk-free rate adjusted for credit risk for leases for entities with no recent external financing;
makes lease specific adjustments (such as term, country, currency and collateral).
The discount rates used by the Group range between 1.75% and 19.9%.
Lease payments are allocated between the repayment of the principal amount of the lease liabilities and interest expense. Interest expense is recognised in the income statement for the period over the term of the lease. Rightof-use assets are depreciated on a straight-line basis over the shorter of the useful life and the lease term.
The Group applies IAS 36 to determine whether a right-of-use asset is impaired and recognises any impairment loss as described in Note 8: Impairment of assets.
Goodwill is not amortised but is tested for impairment at least once a year and whenever there is an indication of impairment.
In addition, at each reporting date, the Group reviews the carrying amounts of its intangible and tangible assets, including its organic producing assets, in order to assess whether there is any indication that its assets may have lost value. If there is such an indication, the recoverable amount of the asset is estimated to determine, if applicable, the amount of the loss or impairment. The recoverable amount is the higher of the fair value less costs to sell the asset and the value in use.
The fair value of property, plant and equipment and intangible assets is the present value of estimated future cash flows expected from the use of an asset or cash-generating unit. When it is not possible to estimate the recoverable amount of an isolated asset, the Group determines the recoverable amount of the cash-generating unit to which the asset belongs.
If the recoverable amount of an asset (or a cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. Impairment losses are immediately recognised as expenses in the income statement.
When an impairment loss recognised in a prior period no longer exists or needs to be written down, the carrying amount of the asset (cash-generating unit) is increased to the extent of the revised estimate of its recoverable amount. However, this increased carrying amount may not exceed the carrying amount that would have been determined if no impairment loss had been recognised for the asset (cash-generating unit) in prior years. The reversal of an impairment loss is recognised immediately in income in the income statement.
An impairment loss recorded on goodwill cannot be subsequently reversed.
Inventories are recorded at the lower of cost and net realisable value. Cost includes direct material costs and, if applicable, direct labour costs and directly attributable overhead costs.
Where specific identification is not possible, the cost is determined on the basis of the weighted average cost method. Net realisable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated costs necessary to complete the sale (primarily selling expenses).
Impairment or loss on inventory to net realisable value is recognised as an expense in the period in which the impairment or loss occurred.
As explained in Note 1.12. Bearer biological assets, agricultural production is measured at fair value less estimated costs necessary to make the sale.
Trade receivables are valued at their nominal value and do not bear interest. The Group applies a simplified approach and records a provision for expected losses over the life of the receivables. This provision for losses is an amount that the Group considers a reliable estimate of the inability of its customers to make the required payments (refer to Note 33).
This item includes cash, demand deposits, short-term deposits of less than 3 months, as well as investments easily convertible into a known amount of cash, having a maturity of three months or less, and which are subject to a negligible risk of change in value.
Financial assets and liabilities are recognised in the consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument.
Financial instruments derivatives are measured at fair value at each reporting date. The accounting treatment depends on the qualification of the instrument concerned:
- Hedging instruments:
The Group refers to certain hedging instruments, including foreign exchange risk and interest rate risk derivatives, as cash flow hedges. Foreign currency hedges related to firm commitments are accounted for as cash flow hedges.
At the inception of the hedging relationship, the entity prepares documentation describing the relationship between the hedging instrument and the hedged item as well as its risk management objectives and strategy for performing various hedging transactions. In addition, when the hedge is created and regularly thereafter, the Group indicates whether the hedging instrument is highly effective in offsetting changes in the fair value or cash flows of the hedged item attributable to the hedged risk.
The effective portion of changes in the fair value of derivatives that are designated as cash flow hedges and qualify for such designation is recognised in other comprehensive income and accumulated in the hedging reserve, cash flow. The gain or loss related to the ineffective portion is recognised immediately in profit or loss, in other gains and losses.
Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to net income in the periods in which the hedged item affects net income, to the same account as the recognised hedged item. However, if a hedged forecast transaction results in the recognition of a non-financial asset or liability, the gains and losses that were previously recognised in other comprehensive income and accumulated in equity are taken out of equity to be recognised in the initial measurement of the cost of the non-financial asset or liability.
For the periods 2021 and 2022, no hedging instruments were used by the Group.
Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the income statement when they occur.
To hedge its exposure to certain foreign exchange risks, the Group uses forward exchange contracts: for the periods 2021 and 2022, forward exchange contracts were used by the Group.
Loans bearing interest are recorded for the amounts given, net of direct costs of issue. Financial income is added to the carrying amount of the instrument to the extent that it is not received in the period in which it occurs. Interest is calculated using the effective interest rate method.
The Group's business model for financial assets management refers to the way it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from the collection of contractual cash flows, the disposal of financial assets or both. Financial assets classified and measured at amortised cost are held in a business model with the objective of holding financial assets to collect contractual cash flows. Long-term advances and other receivables are held for the sole purpose of collecting principal and interest. They comply with the "Solely Payments of Principal and Interest" (SPPI) model. They are accounted for using the amortised cost method.
The Group applies the low credit risk simplification: at every reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the internal credit rating of the debt instrument. In addition, the Group considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due.
Interest-bearing borrowings and overdrafts are recorded for amounts received, net of direct issue costs, at amortised cost. Financial expenses are recognised in income statement and are added to the carrying amount of the instrument to the extent that they are unpaid in the year in which they occur.
The carrying amount is a reasonable approximation of fair value in the case of financial instruments such as borrowings and debts with short-term maturity.
The fair value measurement of borrowings and debts with financial institutions, other than in the short-term, depends both on the specifics of the loans and on current market conditions. The fair value was calculated by discounting the expected future cash flows at the re-estimated interest rates prevailing at the balance sheet date over the remaining term of repayment of the loans (Refer to Note 24).
The Group relied on the evolution of the interest rate of the European Central Bank adjusted for the specific risk inherent in each financial instrument, as a reasonable benchmark for estimating the fair value of such borrowings (see Note 24).
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.
The Group elected to classify irrevocably its non-listed equity investments under this category.
Other financial assets (trade receivables, other receivables, ...) and l liabilities (trade payables, other payables, ...) are recorded at their acquisition cost. The fair value of other financial assets and liabilities is estimated to be close to the carrying amount.
The receivables are valued at their nominal value (at cost) less any write-downs covering amounts considered as non-recoverable if the Group deems it necessary. Impairment of assets is recognised in the income statement under "Other operating income/expenses". The Group has established a provision matrix based on its historical credit loss experience (average default over several years), adjusted for prospective factors specific to the debtors and the economic environment. The carrying amount of the asset is reduced through the use of a provision account and the amount of the loss is recognised in the consolidated income statement. The Board of Directors of each subsidiary evaluates the receivables individually. Value adjustments are determined taking into account the local economic reality of each country. They are reviewed at the reception of new events and at least annually.
Provisions are recognised when the Group has a present obligation (legal or constructive) resulting from a past event which will probably lead to an outflow of economic benefits that can be reasonably estimated.
Restructuring provisions are recognised when the Group has a formal and detailed plan for the restructuring that has been notified to the affected parties.
These plans designate the post-employment benefit plans under which the Group pays defined contributions to external insurance companies for certain categories of employees. Payments made under these pension plans are recognised in the income statement in the year in which they are due.
As these plans do not generate future commitments for the Group, they do not give rise to provisions.
These plans refer to post-employment benefit plans that provide additional income to certain categories of employees for services rendered during the year and prior years.
This guarantee of additional resources is a future expenditure for the Group for which a commitment is calculated by independent actuaries at the end of each financial year.
The actuarial assumptions used to determine the liabilities vary according to the economic conditions prevailing in the country in which the plan is located.
The discount rates applicable to discount post-employment benefit obligations should be determined by reference to the market yields on high quality corporate bonds that are appropriate to the estimated timing of benefit payments at the balance sheet date.
The Group decided to calculate discount rates using an economic approach for high-quality corporate bonds corresponding to the terms of the employee benefits in the countries concerned. In the countries where there is no active market for such obligation, the Group refers to the market yields (at the end of the reporting period) of government bonds. The currency and duration of these corporate or government bonds must correspond to the currency and estimated duration of the post-employment benefit obligations.
The cost of corresponding commitments is determined using the projected unit credit method, with a discounted value calculation at the balance sheet date in accordance with the principles of IAS 19 "Employee Benefits".
All changes in the amount of defined benefit pension obligations are recognised as they occur.
Remeasurements of defined benefit pension obligations, including actuarial gains and losses, should be recognised immediately in "Other comprehensive income".
The costs of services rendered during the period, past service costs (plan amendment) and net interest are recognised as an expense immediately.
The amount recognised in the statement of financial position is the present value of the pension obligations of the defined benefit plans adjusted for actuarial gains and losses and less the fair value of plan assets.
The Group's revenues derive from the performance obligation of transferring control of products under arrangements. According to these arrangements, the transfer of control and the fulfilment of the performance obligation occur at the same time.
The point of control of the asset by the customer depends on when the goods are made available to the carrier or when the buyer takes possession of the goods, depending on the delivery conditions. With regards to the Group's activities, the recognition criteria are generally met:
(a) for export sales, where the time of the transfer of deed based on the incoterms;
(b) for local sales, depending on the delivery conditions, either when the goods leave the premises or when the customer takes possession of the goods.
This is the moment when the Group has fulfilled its performance obligations.
Revenues are valued at the transaction price of the consideration received or receivable, which the company expects to be entitled to.
The selling price is determined at the market price and in a few cases the selling price is contractually determined on a provisional basis, based on a reliable estimate of the selling price. In the latter case, price adjustments can then take place depending on the movements between the reference price and the final price, as recognised.
The Group considers being the principal in its revenue arrangements, because it controls the goods sold before transferring them to the customers.
At 31st December 2022, revenue from the major Group customer accounted for approximately EUR 247.5 million (2021: EUR 215.3 million) of total Group revenue.
Current tax is the amount of tax payable or recoverable on the profit or loss of a financial year.
Temporary differences between the book values of assets and liabilities and their tax bases give rise to the recognition of a deferred tax using the tax rates whose application is provided for when reversing the temporary differences, as adopted on the closing date.
Deferred taxes are recognised for all temporary differences unless the deferred tax is generated by goodwill or by the initial recognition of an asset or a liability that is not acquired through a business combination and does not affect the accounting profit or the taxable profit on the transaction date.
A deferred tax liability is recognised for all taxable temporary differences related to investments in subsidiaries and associates, unless the date on which the temporary difference will be reversed can be checked and it is likely that it will not reverse in the foreseeable future.
A deferred tax asset is recognised to carry forward unused tax losses and tax credits to the extent that it is probable that future taxable profits will be available on which these unused tax losses and tax credits can be charged.
Deferred tax is recognised in the income statement unless it relates to items that have been directly recognised, either in equity or in other comprehensive income.
IFRS 8 "Operating Segments" requires operating segments to be identified based on the internal reporting analysed by the entity's chief operating decision-maker to assess performance and make resource decisions for the segments.
The identification of these operational sectors follows from the information analysed by the management which is based on the geographic distribution of political and economic risks and on the analysis of individual social accounts at historical cost.
For the preparation of consolidated financial statements in accordance with IFRS, Group management has had to make assumptions based on its best estimates that affect the carrying amount of assets and liabilities, information on assets and liabilities, contingent liabilities and the carrying amount of income and expenses recorded during the period. Depending on the evolution of these assumptions or different economic conditions, the amounts that will appear in the Group's future consolidated financial statements may differ from current estimates. Significant accounting policies, for which the Group has made estimates, mainly concern the application of IAS 19 (Note 21), IAS 41 / IAS 2 (Notes 6 and 15), IAS 16 (Note 5), IAS 36 (Notes 5, 6 and 8), IFRS 9 (Note 24) and IFRS 16 (Note 3).
In the absence of observable data within the scope of IFRS 13, the Group makes use of a model developed to assess the fair value of agricultural production based on local production costs and conditions and local sales (Refer to Note 1.12).
This method is inherently more volatile than assessment at historical cost.
At 31st December 2022, liabilities due within 12 months (EUR 198,512,233) do not exceed assets due within 12 months (EUR 229,812,294).
The Group considered the potential impact of the climate change, which may affect positively and negatively the Group's biological assets thus the financial performance of the Group, the distribution of rainfall and sunshine being the most important factors.
The Group considered climatic events such as severe wind or fires in the valuation of the biological assets, however and given the actual level of knowledge, distinguishing impacts of natural climate variations apart from climate impacts related to anthropic activity remain difficult.
The effects of the climate change on the Group's financial statements as at 2022 year-end remain uncertain. The Management Board considered various documentation in its assessment of the impact, such as the last Intergovernmental Panel on Climate Change (IPCC) reports, that do not link the climate change to a negative impact on oil palm plantations.
The Management Board will continue to consider the potential impacts of the climate change in its judgements, and will integrate any new potential impact if this could lead to a material change in the Group's financial statements.
In February 2022, a number of countries (including the US, UK and EU) imposed sanctions against certain entities and individuals in Russia as a result of the official recognition of the Donetsk People Republic and Lugansk People Republic by the Russian Federation. Announcements of potential additional sanctions have been made following military operations initiated by Russia against the Ukraine on 24th February 2022.
Due to the geopolitical tensions since February 2022, there has been a significant increase in volatility on the securities and currency markets, as well as a significant depreciation of the ruble against the US dollar and the euro.
Although neither the company's performance and going concern nor operations, have been significantly impacted by the above during 2022, the Board of Directors continues to monitor the evolving situation and its impact on the financial position and results of the company.
| % Group Interest |
% Group Control |
Consolidation Method (*) |
% Group Interest |
% Group Control |
Consolidation Method (*) |
|
|---|---|---|---|---|---|---|
| 2022 | 2022 | 2022 | 2021 | 2021 | 2021 | |
| AFRICA | ||||||
| Rubber and palm | ||||||
| SOCIETE DES CAOUTCHOUCS DE GRAND-BEREBY "SOGB" S.A. | 63.69 | 73.16 | FI | 63.69 | 73.16 | FI |
| PLANTATIONS SOCFINAF GHANA "PSG" LTD | 100.00 | 100.00 | FI | 100.00 | 100.00 | FI |
| OKOMU OIL PALM COMPANY PLC | 66.38 | 66.38 | FI | 65.23 | 65.23 | FI |
| SOCIETE AFRICAINE FORESTIERE ET AGRICOLE DU CAMEROUN "SAFACAM" S.A. |
69.05 | 69.05 | FI | 69.05 | 69.05 | FI |
| SOCIETE CAMEROUNAISE DE PALMERAIES "SOCAPALM" S.A. | 67.46 | 67.46 | FI | 67.46 | 67.46 | FI |
| Rubber | ||||||
| LIBERIAN AGRICULTURAL COMPANY "LAC" | 100.00 | 100.00 | FI | 100.00 | 100.00 | FI |
| SALALA RUBBER CORPORATION "SRC" | 100.00 | 100.00 | FI | 100.00 | 100.00 | FI |
| SUD COMOË CAOUTCHOUC "SCC" S.A. | 60.95 | 70.01 | FI | 60.95 | 70.01 | FI |
| Palm | ||||||
| SOCFIN AGRICULTURAL COMPANY "SAC" LTD | 93.00 | 93.00 | FI | 93.00 | 93.00 | FI |
| SOCIETE DES PALMERAIES DE LA FERME SUISSE "SPFS" S.A. | 67.46 | 100.00 | FI | 67.46 | 100.00 | FI |
| AGRIPALMA LDA | 88.00 | 88.00 | FI | 88.00 | 88.00 | FI |
| BRABANTA S.A. | 100.00 | 100.00 | FI | 99.80 | 99.80 | FI |
| Other activities | ||||||
| BEREBY-FINANCES "BEFIN" S.A. | 87.06 | 87.06 | FI | 87.06 | 87.06 | FI |
| CAMSEEDS S.A. | 67.61 | 100.00 | FI | 67.61 | 100.00 | FI |
| EUROPE | ||||||
| Other activities | ||||||
| CENTRAGES S.A. | 50.00 | 50.00 | EM | 50.00 | 50.00 | EM |
| IMMOBILIERE DE LA PEPINIERE S.A. | 50.00 | 50.00 | EM | 50.00 | 50.00 | EM |
| INDUSERVICES S.A. | 30.00 | 30.00 | EM | 30.00 | 30.00 | EM |
| INDUSERVICES FR S.A. | 50.00 | 50.00 | EM | 50.00 | 50.00 | EM |
| MANAGEMENT ASSOCIATES S.A. | 15.00 | 15.00 | NC | 20.00 | 20.00 | EM |
| SOCIETE ANONYME FORESTIERE AGRICOLE "SAFA" S.A.S. | 100.00 | 100.00 | FI | 100.00 | 100.00 | FI |
| SOCFINCO S.A. | 50.00 | 50.00 | EM | 50.00 | 50.00 | EM |
| SOCFINCO FR S.A. | 50.00 | 50.00 | EM | 50.00 | 50.00 | EM |
| SOCFINDE S.A. | 20.00 | 20.00 | EM | 20.00 | 20.00 | EM |
| SODIMEX S.A. | - | - | NC | 50.00 | 50.00 | EM |
| SODIMEX FR S.A. | 50.00 | 50.00 | EM | 50.00 | 50.00 | EM |
| SOGESCOL FR S.A. | 50.00 | 50.00 | EM | 50.00 | 50.00 | EM |
| STP INVEST S.A. | 100.00 | 100.00 | FI | 100.00 | 100.00 | FI |
| TERRASIA S.A. | 33.28 | 33.28 | EM | 33.28 | 33.28 | EM |
(*) Consolidation method: FI: Full Integration - EM: Equity Method – NC: Not Consolidated
* SOCFINDE S.A. is a finance holding company under Luxembourg law.
* SOCIETE DES PALMERAIES DE LA FERME SUISSE "SPFS" S.A. is active in Cameroon in the production, processing and marketing of palm oil.
The amounts recognised in the balance sheet related to leases are as follows:
* Right-of-use assets:
| EUR | Furniture, vehicles and other |
Buildings | Land and concession of agricultural area |
TOTAL |
|---|---|---|---|---|
| Gross value at 1st January 2021 | 7,337,888 | 535,431 | 7,120,294 | 14,993,613 |
| Additions | 988,351 | 136,739 | 197,754 | 1,322,844 |
| Foreign exchange differences | 8,302 | -6 | 119,922 | 128,218 |
| Gross value at 31st December 2021 | 8,334,541 | 672,164 | 7,437,970 | 16,444,675 |
| Accumulated depreciation at 1st January 2021 |
-4,668,641 | -404,013 | -2,124,702 | -7,197,356 |
| Depreciation | -1,496,461 | -24,728 | -153,860 | -1,675,049 |
| Foreign exchange differences | -8,125 | -40,979 | -38,174 | -87,278 |
| Accumulated depreciation at 31st December 2021 |
-6,173,227 | -469,720 | -2,316,736 | -8,959,683 |
| Net book value at 31st December 2021 | 2,161,314 | 202,444 | 5,121,234 | 7,484,992 |
| Gross value at 1st January 2022 | 8,334,541 | 672,164 | 7,437,970 | 16,444,675 |
| Additions | 2,517,377 | 0 | 58,191 | 2,575,568 |
| Disposals | 0 | -136,602 | 0 | -136,602 |
| Foreign exchange differences | -32,383 | -39 | 86,597 | 54,175 |
| Gross value at 31st December 2022 | 10,819,535 | 535,523 | 7,582,758 | 18,937,816 |
| Accumulated depreciation at 1st January 2022 |
-6,173,227 | -469,720 | -2,316,736 | -8,959,683 |
| Depreciation | -1,666,422 | -36,367 | -158,987 | -1,861,776 |
| Depreciation reversals | 0 | 40,980 | 0 | 40,980 |
| Foreign exchange differences | 40,887 | 11 | -28,669 | 12,229 |
| Accumulated depreciation at 31st December 2022 |
-7,798,762 | -465,096 | -2,504,392 | -10,768,250 |
| Net book value at 31st December 2022 | 3,020,773 | 70,427 | 5,078,366 | 8,169,566 |
* Lease liabilities:
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Long-term lease liabilities | 8,674,141 | 8,285,305 |
| Short-term lease liabilities | 1,532,064 | 1,105,090 |
| TOTAL | 10,206,205 | 9,390,395 |
The amounts recognised in the income statement in relation with the lease contracts are detailed as follows:
| EUR | 2022 | 2021 |
|---|---|---|
| Depreciation of right-of-use assets | 1,861,776 | 1,675,049 |
| Expenses related to short-term leases and leases of low-value assets | 1,529,868 | 1,707,351 |
| Interest expense (included in the financial expenses) | 1,041,390 | 954,891 |
| TOTAL | 4,433,034 | 4,337,291 |
The Group does not own all of the land on which its biological-based assets are planted. In general, these lands are subject to very long-term concessions from the local public authority. These concessions are renewable.
| Company | Date of initial lease or renewal extension |
Duration of the initial lease |
Area conceded | |
|---|---|---|---|---|
| SOCFIN AGRICULTURAL COMPANY "SAC" | 2013/2014 | 50 years | 18,473 ha | (1) |
| LIBERIAN AGRICULTURAL COMPANY "LAC" | 1959 | 77 years | 121,407 ha | |
| SALALA RUBBER CORPORATION "SRC" | 1960 | 70 years | 8,000 ha | (3) |
| SOGB | 1995 | 99 years | 34,712 ha | |
| PLANTATIONS SOCFINAF GHANA "PSG" | 2013/2016 | 50 years | 18,304 ha | |
| OKOMU OIL PALM COMPANY PLC | 1986/2001/2013 | 92 to 99 years | 33,113 ha | |
| SOCAPALM | 2000 | 60 years | 58,063 ha | |
| SAFACAM | 2019 | 3 years | 2,161 ha | (4) |
| AGRIPALMA | 2009 | 25 years | 4,252 ha | (2)(5) |
| BRABANTA | 2015/2018/2019 | 25 years | 8,380 ha |
(1) Renewable concessions for a term of 25 years
(2) Concessions renewable tacitly for periods of 25 years
(3) Extensible concessions up to 40,000 ha
(4) Safacam owns 15,529 ha
(5) Agripalma owns 665 ha
| EUR | Concessions and patents |
Softwares | Other intangible assets |
TOTAL |
|---|---|---|---|---|
| Cost at 1st January 2021 | 2,107,973 | 729,897 | 765,068 | 3,602,938 |
| Additions | 0 | 915 | 2,752 | 3,667 |
| Disposals | 0 | 0 | 30 | 30 |
| Foreign exchange differences | 81,607 | 21,500 | -178 | 102,929 |
| Cost at 31st December 2021 | 2,189,580 | 752,312 | 767,672 | 3,709,564 |
| Accumulated depreciation at 1st January 2021 | -228,518 | -488,164 | -709,644 | -1,426,326 |
| Depreciation | -42,968 | -247,697 | -12,857 | -303,522 |
| Foreign exchange differences | -8,590 | -12,388 | 178 | -20,800 |
| Accumulated depreciation at 31st December 2021 | -280,076 | -748,249 | -722,323 | -1,750,648 |
| Net book value at 31st December 2021 | 1,909,504 | 4,063 | 45,349 | 1,958,916 |
| Cost at 1st January 2022 | 2,189,580 | 752,312 | 767,672 | 3,709,564 |
| Additions | 0 | 0 | 32,003 | 32,003 |
| Disposals | 0 | -348,205 | -167,660 | -515,865 |
| Foreign exchange differences | -556,198 | 1,454 | -1,205 | -555,949 |
| Cost at 31st December 2022 | 1,633,382 | 405,561 | 630,810 | 2,669,753 |
| Accumulated depreciation at 1st January 2022 | -280,076 | -748,249 | -722,323 | -1,750,648 |
| Depreciation | -35,068 | -3,938 | -15,628 | -54,634 |
| Depreciation reversals | 0 | 348,480 | 167,660 | 516,140 |
| Foreign exchange differences | 69,538 | -1,454 | 1,205 | 69,289 |
| Accumulated depreciation at 31st December 2022 | -245,606 | -405,161 | -569,086 | -1,219,853 |
| Net book value at 31st December 2022 | 1,387,776 | 400 | 61,724 | 1,449,900 |
| EUR | Land and nurseries |
Buildings | Technical installations |
Furniture, vehicles and |
Work in progress |
Advances and |
TOTAL |
|---|---|---|---|---|---|---|---|
| others | prepayments | ||||||
| Cost at 1st January 2021 Additions (*) |
8,833,566 470,766 |
218,513,900 6,994,838 |
119,868,659 22,299,730 |
200,171,674 10,310,803 |
26,777,402 9,533,518 |
248,868 406,203 |
574,414,069 50,015,858 |
| Disposals | -24,592 | -107,278 | -242,806 | -4,059,360 | 0 | 0 | -4,434,036 |
| Transfer | -1,051,159 | 13,867,215 | 4,565,872 | 2,225,091 | -19,174,963 | 0 | 432,056 |
| Foreign exchange differences | 38,115 | 5,519,899 | 1,992,688 | 2,769,275 | 618,290 | 3,025 | 10,941,292 |
| Cost at 31st December 2021 | 8,266,696 | 244,788,574 | 148,484,143 | 211,417,483 | 17,754,247 | 658,096 | 631,369,239 |
| Accumulated depreciation at 1st January 2021 |
-1,163,542 | -113,954,942 | -59,339,090 | -152,965,029 | 0 | 0 | -327,422,603 |
| Depreciation | -23,629 | -9,607,730 | -7,760,055 | -14,583,288 | 0 | 0 | -31,974,702 |
| Depreciation reversals | 10,437 | 634,753 | 249,229 | 3,637,700 | 0 | 0 | 4,532,119 |
| Transfer | 2,470 | -191,384 | 2,768 | 186,146 | 0 | 0 | 0 |
| Foreign exchange differences | -1,308 | -2,051,412 | -519,958 | -2,344,224 | 0 | 0 | -4,916,902 |
| Accumulated depreciation at 31st December 2021 |
-1,175,572 | -125,170,715 | -67,367,106 | -166,068,695 | 0 | 0 | -359,782,088 |
| Accumulated impairment at 1st January 2021 |
0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Impairment | 0 | 0 | -1,728,058 | -182,271 | 0 | 0 | -1,910,329 |
| Accumulated impairment at 31st December 2021 |
0 | 0 | -1,728,058 | -182,271 | 0 | 0 | -1,910,329 |
| Net book value at 31st December 2021 |
7,091,124 | 119,617,859 | 79,388,979 | 45,166,517 | 17,754,247 | 658,096 | 269,676,822 |
| Cost at 1st January 2022 | 8,266,696 | 244,788,574 | 148,484,143 | 211,417,483 | 17,754,247 | 658,096 | 631,369,239 |
| Additions (*) | 409,617 | 6,398,548 | 15,373,975 | 11,600,420 | 12,514,036 | 583,322 | 46,879,918 |
| Disposals | 0 | -1,914,426 | -343,416 | -7,501,440 | 0 | 0 | -9,759,282 |
| Transfer | 870,068 | 2,235,911 | 7,830,695 | 5,329,369 | -16,185,586 | -314,457 | -234,000 |
| Foreign exchange differences | -178,502 | 1,423,572 | -3,654,409 | 530,620 | 178,014 | -61,378 | -1,762,083 |
| Cost at 31st December 2022 | 9,367,879 | 252,932,179 | 167,690,988 | 221,376,452 | 14,260,711 | 865,583 | 666,493,792 |
| Accumulated depreciation at 1st January 2022 |
-1,175,572 | -125,170,715 | -67,367,106 | -166,068,695 | 0 | 0 | -359,782,088 |
| Depreciation | -16,775 | -11,632,747 | -10,914,834 | -11,632,864 | 0 | 0 | -34,197,220 |
| Depreciation reversals | 0 | 1,909,317 | 238,877 | 6,463,264 | 0 | 0 | 8,611,458 |
| Transfer | 0 | -1,736,377 | 0 | 1,736,377 | 0 | 0 | 0 |
| Foreign exchange differences | -1,085 | -701,941 | 750,838 | -916,911 | 0 | 0 | -869,099 |
| Accumulated depreciation at 31st December 2022 |
-1,193,432 | -137,332,463 | -77,292,225 | -170,418,829 | 0 | 0 | -386,236,949 |
| Accumulated impairment at 1st January 2022 |
0 | 0 | -1,728,058 | -182,271 | 0 | 0 | -1,910,329 |
| Impairment (**) | 0 | -409,129 | -403,478 | 0 | 0 | 0 | -812,607 |
| Accumulated impairment at 31st December 2022 |
0 | -409,129 | -2,131,536 | -182,271 | 0 | 0 | -2,722,936 |
| Net book value at 31st December 2022 |
8,174,447 | 115,190,587 | 88,267,227 | 50,775,352 | 14,260,711 | 865,583 | 277,533,907 |
(*) Additions for the period include capitalised costs.
(**) Impairment test on property, plant and equipment is disclosed in Note 8.
At 31st December 2022, the Group has technical installations and professional equipment pledged as guarantees for borrowings of the Group for an amount of EUR 8.1 million (2021 : EUR 11 million). Details of these guarantees are provided in Note 31.
| EUR | Palm | Rubber | Others | TOTAL | ||||
|---|---|---|---|---|---|---|---|---|
| Mature | Immature | Mature | Immature | |||||
| Cost at 1st January 2021 | 355,854,974 | 7,317,554 | 138,335,145 | 74,511,408 | 7,131 | 576,026,212 | ||
| Additions (*) | 0 | 3,397,554 | 0 | 9,502,688 | 0 | 12,900,242 | ||
| Disposals | -641,757 | -518,073 | -1,585,313 | -22,125 | 0 | -2,767,268 | ||
| Transfer | 3,863,596 | -3,777,156 | 36,189,869 | -36,096,036 | 0 | 180,273 | ||
| Foreign exchange differences | 10,314,967 | 86,533 | 4,986,596 | 2,356,489 | 0 | 17,744,585 | ||
| Cost at 31st December 2021 | 369,391,780 | 6,506,412 | 177,926,297 | 50,252,424 | 7,131 | 604,084,044 | ||
| Accumulated depreciation at 1st January 2021 |
-107,206,390 | 0 | -54,068,026 | 0 | -3,048 | -161,277,464 | ||
| Depreciation | -14,929,640 | 0 | -4,289,754 | 0 | -56 | -19,219,450 | ||
| Depreciation reversals | 433,948 | 0 | 1,629,222 | 0 | 0 | 2,063,170 | ||
| Transfer | -1,552,584 | 0 | 0 | 0 | 0 | -1,552,584 | ||
| Foreign exchange differences | -1,591,618 | 0 | -1,511,154 | 0 | 0 | -3,102,772 | ||
| Accumulated depreciation at 31st December 2021 |
-124,846,284 | 0 | -58,239,712 | 0 | -3,104 | -183,089,100 | ||
| Accumulated impairment at 1st January 2021 |
-21,094,793 | 0 | -11,646,517 | -18,314,889 | 0 | -51,056,199 | ||
| Impairment (**) | -6,090,512 | 0 | 0 | 0 | 0 | -6,090,512 | ||
| Impairment reversal | 5,434,846 | 0 | 0 | 0 | 0 | 5,434,846 | ||
| Transfer | 0 | 0 | -16,480,949 | 16,480,949 | 0 | 0 | ||
| Foreign exchange differences | -1,078,246 | 0 | -1,494,650 | -806,209 | 0 | -3,379,106 | ||
| Accumulated impairment at 31st December 2021 |
-22,828,705 | 0 | -29,622,116 | -2,640,149 | 0 | -55,090,971 | ||
| Net book value at 31st December 2021 | 221,716,791 | 6,506,412 | 90,064,469 | 47,612,275 | 4,027 | 365,903,973 | ||
| Cost at 1st January 2022 | 369,391,780 | 6,506,412 | 177,926,297 | 50,252,424 | 7,131 | 604,084,044 | ||
| Additions (*) | 0 | 2,839,161 | 0 | 5,425,671 | 0 | 8,264,832 | ||
| Disposals | -7,615,248 | -521,789 | -4,614,064 | -1,048,276 | 0 | -13,799,377 | ||
| Transfer | 3,220,779 | -3,129,536 | 16,158,537 | -16,015,781 | 0 | 233,999 | ||
| Foreign exchange differences | -1,387,620 | -186,183 | 3,504,320 | -130,834 | 0 | 1,799,683 | ||
| Cost at 31st December 2022 | 363,609,691 | 5,508,065 | 192,975,090 | 38,483,204 | 7,131 | 600,583,181 | ||
| Accumulated depreciation at 1st January 2022 |
-124,846,284 | 0 | -58,239,712 | 0 | -3,104 | -183,089,100 | ||
| Depreciation | -15,458,723 | 0 | -5,828,706 | 0 | -56 | -21,287,485 | ||
| Depreciation reversals | 7,590,069 | 0 | 4,314,350 | 0 | 0 | 11,904,419 | ||
| Transfer | -304,376 | 0 | 304,376 | 0 | 0 | 0 | ||
| Foreign exchange differences | 480,583 | 0 | -1,182,888 | 0 | 0 | -702,305 | ||
| Accumulated depreciation at 31st December 2022 |
-132,538,731 | 0 | -60,632,580 | 0 | -3,160 | -193,174,471 | ||
| Accumulated impairment at 1st January 2022 |
-22,828,705 | 0 | -29,622,116 | -2,640,149 | 0 | -55,090,970 | ||
| Foreign exchange differences | -761,413 | 0 | -1,148,202 | -163,369 | 0 | -2,072,984 | ||
| Accumulated impairment at 31st December 2022 |
-23,590,118 | 0 | -30,770,318 | -2,803,518 | 0 | -57,163,954 | ||
| Net book value at 31st December 2022 | 207,480,842 | 5,508,065 | 101,572,192 | 35,679,686 | 3,971 | 350,244,756 |
(*) Additions for the period include capitalised costs.
(**) Impairment test on biological assets is disclosed in Note 8.
On 31st December 2022, the Group has biological assets pledged as guarantees for borrowings of the Group for an amount of EUR nil (2021: EUR 13 million). Details of these guarantees are provided in Note 31.
Accounting policy regarding current biological assets is disclosed in note 1.12.
| EUR | 2022 | 2021 |
|---|---|---|
| Depreciation | ||
| Of intangible assets (Note 4) | 54,634 | 303,522 |
| Of property, plant and equipment excluding biological assets (Note 5) | 34,197,220 | 31,974,702 |
| Of biological assets (Note 6) | 21,287,485 | 19,219,450 |
| Of right-of-use assets (Note 3) | 1,861,776 | 1,675,049 |
| Impairment | ||
| Of property, plant and equipment excluding biological assets (Note 5) | 812,607 | 1,910,329 |
| Of biological assets (Note 6) | 0 | 6,090,512 |
| Impairment reversal | ||
| Of biological assets (Note 6) | 0 | -5,434,846 |
| TOTAL | 58,213,722 | 55,738,718 |
Impairment tests on goodwill are performed at least once a year to assess whether the carrying amount is still appropriate.
At each reporting date, the Group reviews the carrying amount of its intangible and tangible assets and right-ofuse assets in order to assess whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated to determine, the amount of the impairment loss.
At 31st December 2022, an impairment loss of EUR 0.8 million (2021: EUR 1.9 million) was recognised on Property, plant and equipment.
At each reporting date, the Group assesses if there is any indication that its biological assets may be impaired.
For this purpose, the Group assesses several indicators:
The significant and sustained decreasing trend in the prices of natural rubber (TSR20 1st position on SGX) and crude palm oil (CIF Rotterdam) was considered an observable sign that the biological assets may have been impaired. A decrease in these prices at reporting date greater than 15% compared to an average of 5-year value has been set by the Group to be an impairment indicator.
At 31st December 2022, the decrease in prices does not exceed 15% of the average price over the past 5 years for the rubber and palm segment.
The Group considers, as well, average prices over the six months before reporting date and average prices over the last twelve months instead of only closing prices to avoid seasonal fluctuations in the prices of supply materials.
The Group reviews also the prices of palm oil observed on local market and considers a decrease in these prices at the closing date of more than 15% compared to an average of values over 5 years as an impairment indicator.
Based on these criteria, for the rubber segment, the rise in prices observed during the financial year 2022 does not exceed 15% of the average prices over the past 5 years. For the palm segment, the review of global and local prices do not indicate any impairment indicator.
In addition to these external indicators, the Group considers the following indicators:
The review of impairment indicators led the Group to conclude that no sign of impairment exist during the 2022 period.
If an indication of impairment is identified, the recoverable amount of the bearer biological assets is determined.
Impairment tests must be performed on the smallest identifiable group of assets which generates cash flows independently of other assets or groups of assets "CGU" and for which the Group prepares financial information for the Board of Directors.
The identification of Cash Generating Units (CGUs) depends, in particular, on:
The Group considers the political and country specific risk factors while reviewing business evolution. Therefore, companies are grouped within the CGU country.
The recoverable amount of bearer biological assets is determined from the calculation of value in use using the most recent information approved by the local management. The Group uses the discounted value of expected net cash flows which are discounted at a pre-tax rate. At reporting date, the financial projection incorporates the full exploitation of the younger bearer biological assets. The operational life ranges between 25 and 30 years for both crops. This period can be adapted according to the particular circumstances for each entity.
The value in use calculation has been very sensitive to:
Initially, the Group determines separately the expected production of each category of bearer biological assets within the entity over their remaining life. This expected production is estimated on the basis of the surface areas planted at reporting date as well as the actual crop yield recorded during the financial year which depends on the maturity of the bearer biological asset. Production is then valued on average basis of five-year of the margins achieved by the entity in relation to agricultural activities. The value in use of the bearer biological asset is then obtained by discounting these cash flows. Average margins are considered constant over the duration of the financial projection. An indexing factor is not considered.
At 31st December 2022, accumulated impairment losses in the palm business segment amounted to EUR 9.9 million for Brabanta, EUR 9.2 million for Agripalma and EUR 4.5 million for SAC. For the rubber segment, the accumulated impairment losses are EUR 30.8 million for SRC, EUR 1.4 million for PSG and EUR 1.4 million for Safacam (Note 6).
| Subsidiary | Main location |
Percentage of equity shares of non-controlling interest |
rights of non-controlling | Percentage of voting interests |
|
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | ||
| Production of palm oil and rubber | |||||
| SOGB | Côte d'Ivoire | 36% | 36% | 27% | 27% |
| OKOMU | Nigeria | 34% | 35% | 34% | 35% |
| SAFACAM | Cameroon | 31% | 31% | 31% | 31% |
| SOCAPALM | Cameroon | 33% | 33% | 33% | 33% |
Interests of non-controlling interests in the activities of the Group
| EUR | Net income attributed to non controlling interests in the subsidiary during the financial period |
Accumulated non-controlling | interests in the subsidiary | |
|---|---|---|---|---|
| Subsidiary | 2022 | 2021 | 2022 | 2021 |
| SOGB | 9,919,771 | 8,543,723 | 40,323,449 | 37,590,418 |
| OKOMU | 13,985,190 | 10,771,914 | 32,131,012 | 32,376,319 |
| SAFACAM | 795,546 | 1,205,702 | 14,333,451 | 14,704,129 |
| SOCAPALM | 5,871,789 | 7,290,049 | 27,876,194 | 31,143,226 |
| Subsidiaries that hold non-controlling interests that are not significant individually |
10,127,641 | 5,391,194 |
Non-controlling interests 124,791,747 121,205,286
Summary financial information concerning subsidiaries whose interests of non-controlling interests are significant for the Group excluding intragroup eliminations
| EUR | ||||
|---|---|---|---|---|
| 2021 | Current assets |
Non-current assets |
Current liabilities |
Non-Current Liabilities |
| Subsidiary | ||||
| SOGB | 47,069,842 | 100,818,900 | 36,697,511 | 10,223,275 |
| OKOMU | 33,527,881 | 106,235,499 | 16,119,871 | 39,330,460 |
| SAFACAM | 14,000,204 | 34,504,233 | 10,924,741 | 5,404,975 |
| SOCAPALM | 26,800,996 | 109,893,878 | 25,202,975 | 3,069,977 |
| EUR | ||||
| 2022 | ||||
|---|---|---|---|---|
| SOGB | 41,259,858 | 98,190,002 | 27,675,941 | 6,768,082 |
| OKOMU | 28,642,085 | 116,727,370 | 19,373,135 | 38,262,602 |
| SAFACAM | 12,578,738 | 33,387,449 | 9,541,067 | 3,840,819 |
| SOCAPALM | 31,652,073 | 113,564,581 | 37,057,322 | 7,186,191 |
| EUR | ||||
|---|---|---|---|---|
| 2021 Subsidiary |
Revenue from ordinary activities |
Net income for the period |
Comprehensive income for the period |
Dividends paid to non controlling interests |
| SOGB | 126,645,632 | 22,453,119 | 22,453,119 | 2,455,221 |
| OKOMU | 79,363,158 | 23,976,881 | 23,976,881 | 5,234,727 |
| SAFACAM | 32,790,020 | 3,778,438 | 3,778,438 | 305,252 |
| SOCAPALM | 114,731,158 | 20,617,398 | 20,617,398 | 8,682,053 |
| EUR | ||||
| 2022 | ||||
| SOGB | 143,125,135 | 23,862,820 | 23,862,820 | 5,321,013 |
| OKOMU | 133,279,823 | 38,962,980 | 38,962,980 | 13,683,296 |
| SAFACAM | 35,405,879 | 4,188,838 | 4,188,838 | 1,177,658 |
| SOCAPALM | 112,851,693 | 16,268,753 | 16,268,753 | 7,717,380 |
| EUR | ||||
| 2021 | ||||
| Subsidiary | Net cash inflows (outflows) | Net cash inflows |
||
| Operating | Investing | Financing | (outflows) | |
| SOGB | activities 14,435,766 |
activities -9,570,729 |
activities -12,136,117 |
-7,271,080 |
| OKOMU | 49,550,771 | -28,715,135 | -10,902,826 | 9,932,810 |
| SAFACAM | 2,315,684 | -2,647,396 | 337,688 | 5,976 |
| SOCAPALM | 30,591,306 | -9,720,446 | -30,342,263 | -9,471,402 |
| EUR | ||||
| 2022 | ||||
| SOGB | 46,841,347 | -8,339,224 | -31,411,643 | 7,090,479 |
| OKOMU | 50,558,570 | -22,109,292 | -37,698,943 | -9,249,665 |
| SAFACAM | 8,426,402 | -2,316,652 | -6,346,027 | -236,277 |
| SOCAPALM | 28,473,548 | -10,987,793 | -17,619,574 | -133,819 |
The nature and evolution of the risks associated with the interests held by the Group in the subsidiaries remained stable over the financial period compared to the previous year.
| EUR | 2022 | 2021 |
|---|---|---|
| Value at 1st January | 23,619,989 | 22,149,858 |
| Scope exits (Note 2) | -881,038 | -2,274,586 |
| Income from associates | 11,297,777 | 7,264,009 |
| Dividends | -7,126,982 | -3,383,509 |
| Share in other comprehensive income from associates | 443,737 | 316,401 |
| Other movements | -65,125 | -452,184 |
| Value at 31st December | 27,288,358 | 23,619,989 |
| Value of investment in associates |
Income from associates |
Value of investment in associates |
Income from associates |
|
|---|---|---|---|---|
| EUR | 31/12/2022 | 2022 | 31/12/2021 | 2021 |
| Centrages | 3,366,997 | 132,473 | 3,434,524 | 241,051 |
| Immobilière de la Pépinière | 1,866,129 | 1,962 | 1,864,426 | -46,822 |
| Induservices | 98,291 | 26,434 | 71,857 | 1,018 |
| Induservices FR | 0 | -108,679 | 0 | 164,940 |
| Management Associates | 0 | 154,201 | 245,799 | 531,279 |
| Socfin Green Energy | 0 | 0 | 0 | -641,650 |
| Socfin Research | 0 | 0 | 0 | 1,140,424 |
| Socfinco | 318,537 | -256,646 | 775,183 | 20,607 |
| Socfinco FR | 8,639,420 | 5,223,770 | 7,364,276 | 3,386,981 |
| Socfinde | 1,723,552 | 23,464 | 1,700,089 | 120,699 |
| Sodimex | 0 | 389,114 | 153,374 | 1,557 |
| Sodimex FR | 2,183,194 | 451,950 | 1,890,380 | 227,628 |
| Sogescol FR | 8,807,489 | 5,249,578 | 5,845,483 | 2,106,457 |
| Terrasia | 284,748 | 10,156 | 274,591 | 9,841 |
| TOTAL | 27,288,358 | 11,297,777 | 23,619,982 | 7,264,010 |
| Total assets | Revenue | Total assets | Revenue | |
|---|---|---|---|---|
| EUR | 31/12/2022 | 2022 | 31/12/2021 | 2021 |
| Centrages | 4,106,686 | 3,880,683 | 4,052,720 | 4,128,202 |
| Immobilière de la Pépinière | 4,019,267 | 591,134 | 3,983,909 | 510,366 |
| Induservices | 815,459 | 2,700,576 | 1,853,192 | 3,128,650 |
| Induservices FR | 6,629,460 | 2,937,282 | 6,611,187 | 2,779,036 |
| Management Associates | 18,854,237 | 3,922,498 | 12,567,871 | 3,438,858 |
| Socfinco | 1,589,976 | 169 | 2,456,705 | 20,569 |
| Socfinco FR | 26,442,122 | 30,292,559 | 25,583,207 | 25,179,023 |
| Socfinde | 57,373,319 | 0 | 38,659,255 | 0 |
| Sodimex | 302,203 | 0 | 306,953 | 0 |
| Sodimex FR | 10,279,841 | 21,313,415 | 8,634,788 | 14,238,890 |
| Sogescol FR | 48,532,250 | 411,044,829 | 46,421,846 | 371,317,721 |
| Terrasia | 624,891 | 33,238 | 593,179 | 33,238 |
| TOTAL | 179,569,711 | 476,716,383 | 151,724,812 | 424,774,553 |
| Associate company | Main location |
Main activity | Dividend received |
Dividend received |
|---|---|---|---|---|
| EUR | 31/12/2022 | 31/12/2021 | ||
| Socfinco | Belgium | Rendering of services | 200,000 | 125,000 |
| Socfinco FR | Switzerland | Rendering of services | 4,000,000 | 1,000,000 |
| Sodimex FR | Switzerland | Purchase and sale of equipment | 250,000 | 250,000 |
| Sogescol FR | Switzerland | Trade of tropical products | 2,730,328 | 1,885,091 |
| TOTAL | 7,180,328 | 3,260,091 |
| Associate company | Current assets |
Non current assets |
Current liabilities |
Non current liabilities |
|---|---|---|---|---|
| 31/12/2021 | EUR | EUR | EUR | EUR |
| Management Associates | 1,424,905 | 11,142,966 | 2,868,219 | 7,000,000 |
| Socfinco FR | 19,608,845 | 5,974,362 | 4,970,769 | 5,014,035 |
| Socfinde | 28,727,668 | 9,931,587 | 26,346,328 | 6,429,674 |
| Sodimex FR | 8,585,658 | 49,131 | 4,585,941 | 0 |
| Sogescol FR | 45,509,154 | 912,692 | 33,230,531 | 0 |
| TOTAL | 103,856,230 | 28,010,738 | 72,001,788 | 18,443,709 |
| Associate company | Current assets |
Non current assets |
Current liabilities |
Non current liabilities |
|---|---|---|---|---|
| 31/12/2022 | EUR | EUR | EUR | EUR |
| Management Associates | 1,537,121 | 17,317,115 | 9,398,157 | 7,000,000 |
| Socfinco FR | 22,132,936 | 4,309,187 | 6,658,770 | 3,351,275 |
| Socfinde | 47,411,732 | 9,961,587 | 44,937,399 | 6,412,830 |
| Sodimex FR | 10,245,556 | 34,286 | 5,825,789 | 0 |
| Sogescol FR | 47,807,127 | 725,123 | 31,698,353 | 0 |
| TOTAL | 129,134,472 | 32,347,298 | 98,518,468 | 16,764,105 |
Summary financial information of interests held in associates - Income statement
| Associate company | Profit from operations |
Net income for the period |
Comprehensive income for the period |
|---|---|---|---|
| 31/12/2021 | EUR | EUR | EUR |
| Management Associates | 262,563 | 262,563 | 262,563 |
| Socfinco FR | 6,288,105 | 6,288,105 | 6,288,105 |
| Socfinde | 9,970 | 9,970 | 9,970 |
| Sodimex FR | 413,732 | 413,732 | 413,732 |
| Sogescol FR | 5,129,175 | 5,129,175 | 5,129,175 |
| TOTAL | 12,103,545 | 12,103,545 | 12,103,545 |
| Associate company | Profit from operations |
Net income for the period |
Comprehensive income for the period |
|---|---|---|---|
| 31/12/2022 | EUR | EUR | EUR |
| Management Associates | -243,573 | -243,573 | -243,573 |
| Socfinco FR | 8,833,675 | 8,833,675 | 8,885,013 |
| Socfinde | 139,836 | 139,836 | 139,836 |
| Sodimex FR | 905,204 | 905,204 | 996,068 |
| Sogescol FR | 8,459,383 | 8,459,383 | 8,652,202 |
| TOTAL | 18,094,525 | 18,094,525 | 18,429,547 |
Reconciliation of the financial information summarised above to the carrying amount of the investments in the consolidated financial statements
| Associate company | Net assets of the associate |
% stake held by the Group |
Other IFRS adjustments |
Value of stake held by the Group |
|---|---|---|---|---|
| 31/12/2021 | EUR | EUR | EUR | |
| Management Associates | 2,699,652 | 20% | -294,131 | 245,799 |
| Socfinco FR | 15,598,403 | 50% | -434,926 | 7,364,276 |
| Socfinde | 5,883,253 | 20% | 523,438 | 1,700,089 |
| Sodimex FR | 4,048,848 | 50% | -134,044 | 1,890,380 |
| Sogescol FR | 13,191,315 | 50% | -750,175 | 5,845,483 |
| TOTAL | 41,421,471 | -1,089,838 | 17,046,027 |
| Associate company | Net assets of the associate |
% stake held by the Group |
Other IFRS adjustments |
Value of stake held by the Group |
|---|---|---|---|---|
| 31/12/2022 | EUR | EUR | EUR | |
| Management Associates | 2,456,079 | 15% | -368,412 | 0 |
| Socfinco FR | 16,432,078 | 50% | 423,381 | 8,639,420 |
| Socfinde | 6,023,090 | 20% | 518,934 | 1,723,552 |
| Sodimex FR | 4,454,053 | 50% | -43,833 | 2,183,194 |
| Sogescol FR | 16,833,897 | 50% | 390,541 | 8,807,489 |
| TOTAL | 46,199,197 | 920,611 | 21,353,655 |
There is no goodwill attributed to the above associates.
Aggregated information relating to associates that are not significant individually
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Share of profit from continued operations attributable to the Group | 194,814 | 1,117,037 |
| Share of other comprehensive income attributable to the Group | 194,814 | 1,117,037 |
| Total book value of investments in associates held by the Group | 5,934,703 | 6,573,955 |
Profit after tax from discontinued operations for 2022 and 2021 are nil for all associate companies of the Group.
The nature, extent and financial impact of the interests held in associates by the Group, including the nature of relationships with other investors, remained stable over the financial period compared to the previous year.
| EUR | 2022 | 2021 |
|---|---|---|
| Fair value at 1st January | 38 | 91,902 |
| Disposals | 0 | -91,864 |
| Transfer | 300,000 | 0 |
| Fair value at 31st December | 300,038 | 38 |
| Cost (historical) | Fair value | |||
|---|---|---|---|---|
| EUR | 2022 | 2021 | 2022 | 2021 |
| Financial assets at fair value through other comprehensive income |
300,038 | 38 | 300,038 | 38 |
| EUR | 2022 | 2021 |
|---|---|---|
| IAS 2 / IAS 41: Agricultural production | -3,466,822 | -2,043,880 |
| IAS 12: Withholding Tax | -3,998,436 | -108,261 |
| IAS 16: Property, plant and equipment | -2,667,377 | -3,761,922 |
| IAS 19: Pension obligations | 3,282,072 | 2,063,354 |
| IAS 21: Translation differences | 0 | -40,261 |
| IAS 37: Provisions for risks and charges | 757,296 | 279,695 |
| IAS 38: Formation expenses | 516,392 | 513,556 |
| IAS 38: Research costs | 337,185 | 293,716 |
| IFRS 9: Financial assets measured at fair value through other comprehensive income |
-98,386 | -56,587 |
| IFRS 16: Leases | 648,482 | 506,903 |
| IFRS 3: Fair value of investment property | -16,580 | -15,614 |
| Others | -117 | 381,479 |
| Balance at 31st December | -4,706,291 | -1,987,822 |
| Of which deferred tax assets | 4,513,652 | 9,421,068 |
| Of which deferred tax liabilities | -9,219,943 | -11,408,890 |
The above deferred taxes are presented per category of deferred taxes resulting from consolidated adjustments. They are calculated company per company and the net position between deferred tax liabilities and deferred tax assets is presented.
Some of the subsidiaries have accumulated tax losses that are limited or not over time capital allowances limited or not over time.
Brabanta, SRC, Agripalma and Camseeds, have unused tax losses which recoverability is uncertain of EUR 21.4 million, EUR 20.3 million, EUR 4.6 million and EUR 1.1 million respectively at 31st December 2022. Socfinaf has unused tax losses of EUR 211.4 million.
Due to the instability which may exist in these countries with regards to the evolution of tax legislation or its application, no deferred tax assets have been booked related to these tax losses.
| EUR | 2022 | 2021 |
|---|---|---|
| Current tax assets at 1st January | 13,378,526 | 12,802,007 |
| Tax income | 1,211,151 | 253,048 |
| Other taxes (*) | -1,710,668 | -1,988,902 |
| Taxes paid or recovered | 2,333,362 | 1,457,303 |
| Tax adjustments | -3,022,879 | 460,557 |
| Foreign exchange differences | 249,118 | 394,513 |
| Current tax assets at 31st December | 12,438,610 | 13,378,526 |
| EUR | 2022 | 2021 |
|---|---|---|
| Current tax liabilities at 1st January | 30,408,824 | 20,857,243 |
| Tax expense | 37,157,521 | 22,769,738 |
| Other taxes (*) | 23,208,381 | 38,170,123 |
| Taxes paid or recovered | -48,988,859 | -44,998,165 |
| Tax adjustments | -1,177,818 | -6,458,667 |
| Foreign exchange differences | 43,389 | 68,552 |
| Current tax liabilities at 31st December | 40,651,438 | 30,408,824 |
(*) Other taxes are composed of taxes not included in general tax expenses: VAT, withholding tax, custom tax,...
| EUR | 2022 | 2021 |
|---|---|---|
| Current income tax expense (*) | 39,796,406 | 28,856,992 |
| Deferred tax expense / (income) | 2,914,674 | 718,754 |
| Tax expense at 31st December | 42,711,080 | 29,575,746 |
(*) Withholding tax on dividends is presented within income tax expense.
| EUR | 2022 | 2021 |
|---|---|---|
| IAS 19: Pension obligations | -1,450,766 | 168,783 |
| IAS 38: Intangible assets | -13,828 | 615,930 |
| IAS 2 / IAS 41: Fair value of agricultural produce | 1,420,836 | 1,970,210 |
| IFRS 9: Forward exchange contracts | 0 | 99,835 |
| IFRS 9: Fair value | 44,201 | 0 |
| IAS 12: Income Tax (*) | 1,674,170 | -1,755,604 |
| IAS 16: Tangible assets | 1,666,627 | -15,338 |
| IAS 37: Provisions for risks and charges | -510,998 | -296,810 |
| IAS 21: Foreign exchange differences | -40,261 | 55,169 |
| IFRS 16: Leases | -37,374 | -18,260 |
| Others | 162,066 | -105,162 |
| Deferred tax expense / (income) at 31st December | 2,914,673 | 718,753 |
(*) Of which impact of losses carried forward activated for EUR 3.1 million, and withholding tax for EUR ‑1.7 million.
| EUR | 2022 | 2021 |
|---|---|---|
| Profit before tax from continuing operations | 141,063,191 | 124,039,747 |
| Nominal tax rate of the parent company | 24.94% | 24.94% |
| Nominal tax rate of subsidiaries | from 1% to 33% | from 1% to 33% |
| Income tax at nominal tax rates of subsidiaries | 33,020,896 | 28,072,195 |
| Unfunded taxes | 61,922 | -36,334 |
| Definitively taxed income | 2,222,265 | 2,096,157 |
| Use of capital allowances | -4,472,551 | -11,555,282 |
| Specific tax regimes in foreign countries | 6,763,922 | 10,444,393 |
| Non-taxable income | -1,962,465 | -4,545,080 |
| Non-deductible expenses | 3,975,975 | 5,425,363 |
| Use of unrecognised accumulated tax losses | -1,125,940 | -6,790,311 |
| Unrecognised losses carried forward | 4,104,175 | 5,716,643 |
| Other tax benefits | -40,956 | -91,063 |
| Additional tax assessment | 35,862 | 23,775 |
| Impact of change in tax rate | 113,723 | 819,090 |
| Other adjustments | 14,252 | -3,800 |
| Tax expense at 31st December | 42,711,080 | 29,575,746 |
Since 2021, companies listed in Cameroon are eligible for a reduced tax rate of 27.5%.
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Raw materials | 33,610,606 | 27,113,530 |
| Consumables | 22,944,186 | 18,792,579 |
| Spare parts | 32,159,246 | 26,307,919 |
| Production in progress | 635,495 | 655,035 |
| Finished products | 17,412,198 | 21,996,097 |
| Down-payments and orders in progress | 4,400,098 | 2,037,012 |
| Gross amount (before impairment) at 31st December | 111,161,829 | 96,902,172 |
| Inventory write-downs | -5,392,015 | -4,057,300 |
| Net amount at 31st December | 105,769,814 | 92,844,872 |
| EUR | 2022 | 2021 |
|---|---|---|
| Situation at 1st January | 96,902,172 | 86,001,559 |
| Change in inventory | 8,994,376 | 3,669,769 |
| Fair value of agricultural products | 5,115,356 | 5,691,697 |
| Foreign exchange differences | 149,925 | 1,539,147 |
| Gross amount (before impairment) at 31st December | 111,161,829 | 96,902,172 |
| Inventory write-downs | -5,392,015 | -4,057,300 |
| Net amount at 31st December | 105,769,814 | 92,844,872 |
| 31/12/2021 | Raw materials |
Production-in-progress | Finished goods |
|---|---|---|---|
| Crude Palm Oil / Palm Kernel Oil (tons) | 1,346 | 0 | 10,405 |
| Rubber (tons) | 30,608 | 0 | 12,595 |
| Others (units) | 0 | 0 | 2,884,630 |
| 31/12/2022 | Raw materials |
Production-in-progress | Finished goods |
| Crude Palm Oil / Palm Kernel Oil (tons) | 667 | 0 | 6,079 |
|---|---|---|---|
| Rubber (tons) | 33,460 | 0 | 9,931 |
| Others (units) | 0 | 0 | 2,150,187 |
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Trade receivables | 19,073,838 | 23,628,781 |
| Advances and prepayments | 4,445,384 | 4,556,551 |
| TOTAL | 23,519,222 | 28,185,332 |
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Social security | 1,017,195 | 1,250,009 |
| Other receivables (*) | 19,953,623 | 7,313,455 |
| Accrued charges | 470,178 | 432,058 |
| TOTAL | 21,440,996 | 8,995,522 |
(*) Other receivables include receivables linked to non-operational activities and a receivable of EUR 14.3 million (EUR 1.6 million in 2021) relating to the cash pooling at the level of Socfinaf and its subsidiaries.
The accounting and risk management policies related to receivables are detailed in Notes 1 and 33.
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Current account | 63,638,033 | 63,091,772 |
| TOTAL | 63,638,033 | 63,091,772 |
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Current account | 63,638,033 | 63,091,772 |
| Bank overdrafts (*) | -10,695,901 | -7,029,326 |
| TOTAL | 52,942,132 | 56,062,446 |
(*) See also Note 22.
Issued and fully paid capital amounted to EUR 35.7 million as at 31st December 2022 (stable compared to 2021). There is a share premium of EUR 87.5 million added to the issued capital.
At 31st December 2022, the share capital is represented by 17,836,650 shares with no designation of par value.
| Ordinary shares | ||
|---|---|---|
| 31/12/2022 | 31/12/2021 | |
| Number of shares at 31st December | 17,836,650 | 17,836,650 |
| Number of fully paid shares issued without designation of par value | 17,836,650 | 17,836,650 |
In accordance with Luxembourg commercial law, the Company is required to allocate a minimum of 5% of its net profit for each financial year to a legal reserve. This requirement ceases to be necessary once the balance on the legal reserve reaches 10% of the issued share capital. The legal reserve is not available for distribution to the shareholders.
Besides the legislation on social security applicable locally, most of the employees of the Group in Africa benefit from a defined benefit pension plan. The subsidiaries pay benefits in the event of retirement and depending on countries in case of dismissal. The benefits paid are calculated as a percentage of salary and are based on the number of years of service. The plans are governed by the local collective agreements in force in each country. The benefits payable to the staff of the Cameroonian subsidiary Socapalm are financed by assets that include insurance contracts whose price is not quoted on active markets.
| EUR | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|
| Present value of obligations |
Fair value of the benefit plans |
Net amount recognised |
Present value of obligations |
Fair value of the benefit plans |
Net amount recognised |
|
| Assets and liabilities recognised in the statement of financial position | ||||||
| Present value of obligations | 13,689,169 | -1,322,634 | 12,366,535 | 13,768,201 | -1,713,679 | 12,054,522 |
| Net amount recognised in the statement of financial position for defined benefit plans |
13,689,169 | -1,322,634 | 12,366,535 | 13,768,201 | -1,713,679 | 12,054,522 |
| Components of net charge | ||||||
| Current service costs | 855,755 | 855,755 | 887,817 | 887,817 | ||
| Financial costs | 1,061,814 | 23,422 | 1,085,236 | 866,521 | 23,257 | 889,778 |
| Interest income on plan assets | -116,216 | -116,216 | -106,422 | -106,422 | ||
| Defined benefit plan costs | 1,917,569 | -92,794 | 1,824,775 | 1,754,338 | -83,165 | 1,671,173 |
| Movements in liabilities / net assets recognised in the statement of financial position | ||||||
| At 1st January | 13,768,201 | -1,713,679 | 12,054,521 | 14,593,998 | -1,382,636 | 13,211,362 |
| Costs as per income statement | 1,917,569 | -92,794 | 1,824,775 | 1,754,338 | -83,165 | 1,671,173 |
| Contributions by employer | -900,012 | -669,194 | -1,569,206 | -462,666 | -664,485 | -1,127,151 |
| Costs of services rendered | -223,676 | 223,676 | 0 | -273,567 | 273,567 | 0 |
| Actuarial gains and losses of the year recognised in other comprehensive income |
-954,436 | 51,880 | -902,556 | -2,062,162 | 51,073 | -2,011,089 |
| Reclassification of net asset | 877,478 | 877,478 | 91,967 | 91,967 | ||
| Foreign exchange differences | 81,522 | 81,522 | 218,259 | 218,259 | ||
| At 31st December | 13,689,168 | -1,322,634 | 12,366,534 | 13,768,201 | -1,713,679 | 12,054,521 |
Provisions are based on actuarial valuation reports prepared in January 2023.
| EUR | 2022 | |||||
|---|---|---|---|---|---|---|
| Present value of obligations |
Fair value of the benefit plans |
Net amount recognised |
Present value of obligations |
Fair value of the benefit plans |
Net amount recognised |
|
| Adjustments of liabilities related to experience |
-269,868 | 0 | -269,868 | 139,152 | 0 | 139,152 |
| Changes in financial assumptions related to recognised liabilities |
1,445,002 | 0 | 1,445,002 | 2,229,828 | 0 | 2,229,828 |
| Changes in demographic assumptions related to recognised liabilities |
-220,698 | 0 | -220,698 | -306,816 | 0 | -306,816 |
| Return on assets in the plan excl. interest income |
0 | -51,880 | -51,880 | 0 | -51,073 | -51,073 |
| Actuarial gains and losses recognised during the period in other comprehensive income |
954,436 | -51,880 | 902,556 | 2,062,164 | -51,073 | 2,011,091 |
| 2022 | 2021 | |
|---|---|---|
| AFRICA | ||
| Average discount rate | from 4.93% to 18.48% | from 2.63% to 12.61% |
| Expected long-term returns of plan assets | 170,158 | N/A |
| Future salary increases | from 1.74% to 12% | from 1.74% to 12% |
| Average remaining active life of employees (in years) | 19.34 | 19.50 |
| EUR | 2022 | 2021 |
|---|---|---|
| Actuarial value of the obligation | ||
| - Pension plan | 13,689,169 | 13,768,201 |
| - Fair value of plan assets | -1,322,634 | -1,713,679 |
| Total at 31st December | 12,366,535 | 12,054,522 |
| Actuarial rate (on pension plan) | ||
| Increase of 0.5% | 13,285,487 | 13,316,089 |
| Decrease of 0.5% | 14,093,019 | 14,228,460 |
| Expected future salary increases (on pension plan) | ||
| Increase of 0.5% | 14,067,916 | 14,197,217 |
| Decrease of 0.5% | 13,306,104 | 13,341,712 |
The sensitivity analysis is based on the same actuarial method used to measure the obligations of the defined benefit plans.
* Impact of the defined benefit pension plan on future cash flows
| 2023 | 2022 | |
|---|---|---|
| Estimated contributions for the next financial year (in euros) | 1,810,894 | 1,394,835 |
| 2022 | 2021 | |
| Weighted average duration of defined benefit plan obligations (in years) | 6.2 | 6.7 |
| EUR | 2022 | 2021 |
|---|---|---|
| Accounted expense for the defined contribution pension plan | 1,049,949 | 643,632 |
| 31/12/2021 | |||
|---|---|---|---|
| EUR | < 1 year | > 1 year | TOTAL |
| Loans held by financial institutions | 13,112,838 | 42,290,430 | 55,403,268 |
| Lease liabilities | 1,105,090 | 8,285,305 | 9,390,395 |
| Other loans (*) | 15,446,018 | 192,389,051 | 207,835,069 |
| Bank overdrafts (**) | 7,029,326 | 0 | 7,029,326 |
| TOTAL | 36,693,272 | 242,964,786 | 279,658,058 |
| 31/12/2022 | |||
|---|---|---|---|
| EUR | < 1 year | > 1 year | TOTAL |
| Loans held by financial institutions | 16,872,593 | 34,606,124 | 51,478,717 |
| Lease liabilities | 1,532,064 | 8,674,142 | 10,206,206 |
| Other loans (*) | 15,503,351 | 124,976,156 | 140,479,507 |
| Bank overdrafts (**) | 10,695,901 | 0 | 10,695,901 |
| TOTAL | 44,603,909 | 168,256,422 | 212,860,331 |
(*) This balance includes an amount of EUR 134.5 million payable to Socfin (2021 : EUR 196.5 million). See note 30.
(**) See also Note 18.
Most of the consolidated borrowings are denominated in Euros or CFA francs (whose parity is linked to the Euro). The fixed interest rates from financial institutions and which are pegged to the Euro vary between 5.00% and 7.09%.
As explained in Note 33, interest rate management is the subject of ongoing management attention.
The Group is in compliance with covenants related to amounts owed to credit institutions.
* Analysis of long-term debt by interest rate
| 31/12/2021 | |||||
|---|---|---|---|---|---|
| EUR | Fixed Rate | Rate | Floating rate | Rate | TOTAL |
| Loans held by financial institutions | |||||
| Côte d'Ivoire | 6,940,138 | 5.50% to 6.50% | 0 | - | 6,940,138 |
| Nigeria | 18,203,287 | 5.00% to 10.00% | 0 | - | 18,203,287 |
| Liberia | 2,462,387 | 7.60% | 0 | - | 2,462,387 |
| Cameroon | 6,559,618 | 5.75% to 6.80% | 0 | - | 6,559,618 |
| Ghana | 8,125,000 | 4.00% | 0 | - | 8,125,000 |
| 42,290,430 | 0 | 42,290,430 | |||
| Other loans | |||||
| Europe | 120,000,000 | 4.25% | 66,463,935 | 3-months LIBOR +6.95% |
186,463,935 |
| Sierra Leone | 5,925,116 | 3.00% | 0 | - | 5,925,116 |
| 125,925,116 | 66,463,935 | 192,389,051 | |||
| TOTAL | 168,215,546 | 66,463,935 | 234,679,481 | ||
| 31/12/2022 | |||||
| EUR | Fixed Rate | Rate | Floating rate | Rate | TOTAL |
| Loans held by financial institutions | |||||
| Côte d'Ivoire | 2,647,567 | 5.50% to 6.50% | 0 | - | 2,647,567 |
| Nigeria | 17,197,310 | 5.00% to 10.00% | 0 | - | 17,197,310 |
| Liberia | 1,699,592 | 7.60% | 0 | - | 1,699,592 |
| Cameroon | 8,186,656 | 5.00% to 7.09% | 0 | - | 8,186,656 |
| Ghana | 4,874,999 | 4.00% | 0 | - | 4,874,999 |
| 34,606,124 | 0 | 34,606,124 | |||
| Other loans | |||||
| Europe | 120,000,000 | 4.25% | 0 | 120,000,000 | |
| Sierra Leone | 4,976,157 | 3.00% | 0 | - | 4,976,157 |
| 124,976,157 | 0 | 124,976,157 |
| 31/12/2021 | EUR | CFA | NGN | STN | USD | GHS | CDF | TOTAL EUR |
|---|---|---|---|---|---|---|---|---|
| Loans held by financial institutions | 8,125,000 | 13,499,755 | 18,203,287 | 0 | 2,462,388 | 0 | 0 | 42,290,430 |
| Other loans | 186,463,936 | 2 | 0 | 0 | 5,925,114 | 0 | 0 | 192,389,052 |
| Lease liabilities | 0 | 6,332,507 | 271,450 | 289,187 | 1,306,092 | 47,996 | 38,071 | 8,285,303 |
| TOTAL | 194,588,936 | 19,832,264 | 18,474,737 | 289,187 | 9,693,594 | 47,996 | 38,071 | 242,964,785 |
| 31/12/2022 | EUR | CFA | NGN | STN | USD | GHS | CDF | TOTAL EUR |
| Loans held by financial institutions | 4,874,999 | 10,834,222 | 17,197,310 | 0 | 1,699,592 | 0 | 0 | 34,606,123 |
| Other loans | 120,000,000 | 0 | 0 | 0 | 4,976,156 | 0 | 0 | 124,976,156 |
| Lease liabilities | 0 | 6,901,010 | 65,318 | 268,436 | 1,364,985 | 35,690 | 38,702 | 8,674,141 |
* Net cash surplus / (net debt)
| 31/12/2021 | ||||||
|---|---|---|---|---|---|---|
| EUR | 2023 | 2024 | 2025 | 2026 | 2027 and above |
TOTAL |
| Loans held by financial institutions | 16,450,747 | 10,138,166 | 5,394,772 | 3,669,989 | 6,636,756 | 42,290,430 |
| Lease liabilities | 879,920 | 527,871 | 152,648 | 105,521 | 6,619,345 | 8,285,305 |
| Other loans | 9,719,243 (*) | 9,719,243 (*) | 9,719,243 (*) | 196,183,178 (*) | 5,925,115 | 231,266,022 |
| TOTAL | 27,049,910 | 20,385,280 | 15,266,663 | 199,958,688 | 19,181,216 | 281,841,757 |
(*) those amounts correspond to the interests and capital to be repaid on the EUR 120 million and USD 74.8 million long-term loans, disclosed in Note 30.
| 31/12/2022 | ||||||
|---|---|---|---|---|---|---|
| EUR | 2024 | 2025 | 2026 | 2027 | 2028 and above |
TOTAL |
| Loans held by financial institutions | 13,888,998 | 7,702,455 | 4,539,071 | 3,950,392 | 4,525,209 | 34,606,125 |
| Lease liabilities | 1,220,841 | 606,192 | 278,971 | 73,687 | 6,494,450 | 8,674,141 |
| Other loans | 5,100,000 (*) | 5,100,000 (*) | 125,100,000 (*) | 0 | 4,976,156 | 140,276,156 |
| TOTAL | 20,209,839 | 13,408,647 | 129,918,042 | 4,024,079 | 15,995,815 | 183,556,422 |
(*) those amounts correspond to the interests and capital to be repaid on the EUR 120 million long-term loan, disclosed in Note 30.
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Cash and cash equivalents | 63,638,033 | 63,091,772 |
| Long-term debt net of current portion | -159,582,280 | -234,679,480 |
| Short-term debt and current portion of long-term debt | -43,071,844 | -35,588,183 |
| Lease liabilities | -10,206,207 | -9,390,396 |
| Net debt | -149,222,298 | -216,566,287 |
| Cash and cash equivalents | 63,638,033 | 63,091,772 |
| Loan bearing interest at a fixed rate | -188,042,341 | -193,747,432 |
| Loan bearing interest at a variable rate | -14,611,784 | -76,520,231 |
| Lease liabilities | -10,206,207 | -9,390,396 |
| Net debt | -149,222,298 | -216,566,287 |
* Reconciliation of net cash surplus / (net debt)
| Cash and cash equivalents |
Long-term debt, net of current portion |
Short-term debt and current portion of long-term debt |
Debt related to leases |
TOTAL | |
|---|---|---|---|---|---|
| At 1st January 2021 | 35,372,990 | -134,841,335 | -161,910,543 | -9,599,122 | -270,978,010 |
| Cash flows | 27,161,205 | -22,418,673 | 52,262,491 | 1,595,201 | 58,600,224 |
| Foreign exchange differences |
557,575 | -1,048,465 | -90,876 | -99,356 | -681,122 |
| Transfers | 0 | -76,371,003 | 74,150,742 | 0 | -2,220,261 |
| Other movements with no impact on cash flows |
0 | 0 | 0 | -1,287,115 | -1,287,115 |
| At 31st December 2021 | 63,091,770 | -234,679,476 | -35,588,186 | -9,390,392 | -216,566,284 |
| Cash flows | 992,576 | 66,189,365 | 21,018,464 | 1,737,556 | 89,937,961 |
| Foreign exchange differences |
-446,314 | 1,813,057 | 1,020,847 | -78,293 | 2,309,297 |
| Transfers | 0 | 17,174,509 | -29,522,972 | 0 | -12,348,463 |
| Other movements with no impact on cash flows |
0 | -10,079,732 | 0 | -2,475,073 | -12,554,805 |
| At 31st December 2022 | 63,638,032 | -159,582,277 | -43,071,847 | -10,206,202 | -149,222,294 |
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Non-current other payables | 6,005,421 | 7,401,156 |
| Trade creditors: suppliers | 42,111,681 | 34,257,187 |
| Advances received and invoices to be received | 8,074,757 | 9,590,674 |
| Subtotal trade payables | 50,186,438 | 43,847,861 |
| Staff cost liabilities | 5,102,003 | 5,201,155 |
| Other payables (*) | 48,178,657 | 51,170,778 |
| Accruals (**) | 9,167,312 | 12,504,635 |
| Subtotal current other payables | 62,447,972 | 68,876,568 |
| TOTAL | 118,639,831 | 120,125,585 |
| Non-current liabilities | 6,005,421 | 7,401,156 |
| Current liabilities | 112,634,410 | 112,724,429 |
(*) Other payables consist mainly of shareholder loans amounting to EUR 40.4 million (EUR 40.4 million in 2021) as well as debt of EUR 0.3 million (EUR 2.2 million in 2021) relating to the cash pooling at the level of Socfinaf. See also Note 30.
(**) This amount includes Okomu grant part of the loans, for EUR 6.2 million (2021: EUR 8.1 million).
| 31/12/2021 | Loans and borrowings |
Financial assets at fair value through other comprehensi ve income |
Other financial assets and liabilities |
TOTAL | Loans and borrowings (*) |
Other financial assets and liabilities (*) |
|---|---|---|---|---|---|---|
| EUR | At cost | At fair value | At cost | At fair value | At fair value | |
| Assets Financial assets at fair value through other comprehensive income |
0 | 38 | 0 | 38 | 0 | 0 |
| Long-term advances | 1,390,426 | 0 | 355,294 | 1,745,720 | 1,390,426 | 355,294 |
| Other non-current assets | 0 | 0 | 1,743,808 | 1,743,808 | 0 | 1,743,808 |
| Trade receivables | 0 | 0 | 28,185,332 | 28,185,332 | 0 | 28,185,332 |
| Other receivables | 0 | 0 | 8,995,522 | 8,995,522 | 0 | 8,995,522 |
| Cash and cash equivalents | 0 | 0 | 63,091,772 | 63,091,772 | 0 | 63,091,772 |
| Total Assets | 1,390,426 | 38 | 102,371,728 | 103,762,192 | 1,390,426 | 102,371,728 |
| Liabilities | ||||||
| Long-term debts (**) | 234,679,480 | 0 | 0 | 234,679,480 | 234,682,961 | 0 |
| Other non-current liabilities | 0 | 0 | 7,401,156 | 7,401,156 | 0 | 7,401,156 |
| Short-term debts (**) | 28,558,856 | 0 | 7,029,327 | 35,588,183 | 28,558,856 | 7,029,327 |
| Trade payables (current) | 0 | 0 | 43,847,861 | 43,847,861 | 0 | 43,847,861 |
| Other payables (current) (**) | 0 | 0 | 68,876,568 | 68,876,568 | 0 | 68,876,568 |
| Total Liabilities | 263,238,336 | 0 | 127,154,912 | 390,393,248 | 263,241,817 | 127,154,912 |
(*) For information purposes.
(**) See note 22.
| 31/12/2021 | Fair Value | |||
|---|---|---|---|---|
| EUR | Level 1 | Level 2 | Level 3 | TOTAL |
| Financial assets at fair value through other comprehensive income | 0 | 0 | 38 | 38 |
| 31/12/2022 | Loans and borrowings |
Financial assets at fair value through other comprehensive income |
Other financial assets and liabilities |
TOTAL | Loans and borrowings (*) |
Other financial assets and liabilities (*) |
|---|---|---|---|---|---|---|
| EUR | At cost | At fair value | At cost | At fair value | At fair value | |
| Assets | ||||||
| Financial assets at fair value through other comprehensive income |
0 | 300,038 | 0 | 300,038 | 0 | 0 |
| Long-term advances | 1,231,712 | 0 | 433,058 | 1,664,770 | 1,231,712 | 433,058 |
| Other non-current assets | 0 | 0 | 2,619,576 | 2,619,576 | 0 | 2,619,576 |
| Trade receivables | 0 | 0 | 23,519,222 | 23,519,222 | 0 | 23,519,222 |
| Other receivables | 0 | 0 | 21,440,996 | 21,440,996 | 0 | 21,440,996 |
| Cash and cash equivalents | 0 | 0 | 63,638,033 | 63,638,033 | 0 | 63,638,033 |
| Total Assets | 1,231,712 | 300,038 | 111,650,885 | 113,182,635 | 1,231,712 | 111,650,885 |
| Liabilities | ||||||
| Long-term debts (**) | 159,582,280 | 0 | 0 | 159,582,280 | 159,078,419 | 0 |
| Other non-current liabilities |
0 | 0 | 6,005,421 | 6,005,421 | 0 | 6,005,421 |
| Short-term debts (**) | 32,375,944 | 0 | 10,695,900 | 43,071,844 | 32,375,944 | 10,695,900 |
| Trade payables (current) | 0 | 0 | 50,186,438 | 50,186,438 | 0 | 50,186,438 |
| Other payables (current) (**) |
0 | 0 | 77,059,462 | 77,059,462 | 0 | 77,059,462 |
| Total Liabilities | 191,958,224 | 0 | 129,335,730 | 321,293,954 | 191,454,363 | 129,335,730 |
(*) For information purposes.
(**) See note 22.
| 31/12/2022 | Fair Value | |||
|---|---|---|---|---|
| EUR | Level 1 | Level 2 | Level 3 | TOTAL |
| Financial assets at fair value through other comprehensive income |
0 | 0 | 300,038 | 300,038 |
The Group did not identify significant differences between the carrying amount of the loans and their fair value.
| Staff costs EUR |
2022 | 2021 |
|---|---|---|
| Remuneration | 67,210,544 | 62,844,015 |
| Social security and pension expenses | 7,056,194 | 7,042,368 |
| TOTAL | 74,266,738 | 69,886,383 |
| Average number of employees | 2022 | 2021 |
| Directors | 106 | 107 |
| Employees | 4,534 | 3,870 |
| Workers (including temporary workers) | 20,813 | 20,619 |
| TOTAL | 25,453 | 24,596 |
| EUR | 2022 | 2021 |
|---|---|---|
| Interest from receivables and cash and cash equivalents | 346,457 | 257,883 |
| Exchange gains | 8,040,379 | 3,681,686 |
| Others | 267,079 | 2,385,209 |
| TOTAL | 8,653,915 | 6,324,778 |
| EUR | 2022 | 2021 |
|---|---|---|
| Interest and finance expense | 14,896,038 | 13,986,514 |
| Interest expense on lease liabilities | 1,041,390 | 954,891 |
| Exchange losses | 24,584,287 | 6,859,672 |
| Others | 641,659 | 562,031 |
| TOTAL | 41,163,374 | 22,363,108 |
The undiluted net earnings per share (basic) is the profit for the year attributable to ordinary shareholders divided by the average number of ordinary shares outstanding during the year. As there are no potential dilutive ordinary shares, the diluted net earnings per share is identical to the undiluted net earnings per share.
| 2022 | 2021 | |
|---|---|---|
| Net profit / (loss) for the period (in euros) | 75,584,548 | 72,028,965 |
| Average number of shares | 17,836,650 | 17,836,650 |
| Net earnings per share undiluted (in euros) | 4.24 | 4.04 |
The Board will propose to the Annual General Meeting of 30th May 2023 not to pay any dividend.
| 2022 | 2021 | |
|---|---|---|
| Dividends and interim dividends distributed during the period | 0 | 0 |
| Number of shares | 17,836,650 | 17,836,650 |
| Dividend per share distributed during the period | 0.00 | 0.00 |
| EUR | 2022 | 2021 |
|---|---|---|
| Short-term benefits | 356,995 | 863,648 |
| 31/12/2021 | ||||
|---|---|---|---|---|
| EUR | Parent | Associates | Other related parties |
TOTAL |
| Non-current assets | ||||
| Long-term advances | 0 | 590,000 | 0 | 590,000 |
| 0 | 590,000 | 0 | 590,000 | |
| Current assets | ||||
| Trade receivables | 0 | 21,424,833 | 6,598 | 21,431,431 |
| Other receivables (Note 17) | 0 | 2,233,336 | 5,636 | 2,238,972 |
| 0 | 23,658,169 | 12,234 | 23,670,403 | |
| Non-current liabilities | ||||
| Financial debts (Note 22) | 186,463,934 | 5,925,115 | 0 | 192,389,049 |
| 186,463,934 | 5,925,115 | 0 | 192,389,049 | |
| Current liabilities | ||||
| Financial debts (Note 22) | 10,056,296 | 15,780 | 0 | 10,072,076 |
| Trade payables | 0 | 13,718,264 | 39,713 | 13,757,977 |
| Other payables (Note 23) | 0 | 7,310,533 | 40,404,934 | 47,715,467 |
| 10,056,296 | 21,044,577 | 40,444,647 | 71,545,519 | |
| Income statement | ||||
| Services and goods delivered | 0 | 210,672,282 | 0 | 210,672,282 |
| Services and goods received | 0 | 33,154,829 | 116,812 | 33,271,641 |
| Financial income | 0 | -57,869 | 0 | -57,869 |
| Financial expenses | 6,327,238 | 219,006 | 4,344,109 | 10,890,353 |
| 31/12/2022 | ||||
|---|---|---|---|---|
| EUR | Parent | Associates | Other related parties |
TOTAL |
| Non-current assets | ||||
| Long-term advances | 0 | 130,000 | 280,000 | 410,000 |
| 0 | 130,000 | 280,000 | 410,000 | |
| Current assets | ||||
| Trade receivables | 0 | 14,712,028 | 0 | 14,712,028 |
| Other receivables (Note 17) | 0 | 15,122,089 | 7,464 | 15,129,553 |
| 0 | 29,834,117 | 7,464 | 29,841,581 | |
| Non-current liabilities | ||||
| Financial debts (Note 22) | 120,000,000 | 4,976,156 | 0 | 124,976,156 |
| 120,000,000 | 4,976,156 | 0 | 124,976,156 | |
| Current liabilities | ||||
| Financial debts (Note 22) | 14,611,491 | 292 | 0 | 14,611,783 |
| Trade payables | 0 | 15,503,605 | 71,063 | 15,574,668 |
| Other payables (Note 23) | 0 | 3,159,945 | 40,406,140 | 43,566,085 |
| 14,611,491 | 18,663,842 | 40,477,203 | 73,752,536 | |
| Income statement | ||||
| Services and goods delivered | 0 | 247,471,984 | 0 | 247,471,984 |
| Services and goods received | 0 | 45,273,521 | 681,422 | 45,954,943 |
| Financial income | 0 | 69,462 | 0 | 69,462 |
| Financial expenses | 8,835,902 | 520,375 | 1,600,000 | 10,956,277 |
Related party transactions are carried out at arm's length.
Other related party transactions are carried out with Bolloré Participations and Palmboomen Cultuur Maatschappij (Mopoli).
Mopoli is a Dutch company which is majority owned by Mr Hubert Fabri through Financière Privée, which also owns Socfin.
Bolloré Participations is a shareholder and director of Socfinaf.
In 2014, Socfinaf obtained a cash advance of EUR 35 million from Mopoli. This advance bears an annual interest (net of tax) of 4%. Interest is payable in arrears at the end of each calendar quarter. The amount of interest recognised for the year 2022 is EUR 0.8 million. At 31st December 2022, the outstanding balance amounts to EUR 20.2 million and is repayable on demand with final maturity on July 2024.
In 2016, Socfinaf obtained a loan of EUR 20 million from Bolloré Participations. The loan has an annual interest rate of 4%. The amount of interest recognised for the year 2022 is EUR 0.8 million. At 31st December 2022, the outstanding balance amounts to EUR 20.2 million and is repayable on demand with final maturity on June 2024.
Socfinaf did not pay any dividend in 2022 to its parent company Socfin (2021: nil). Socfinaf has borrowed an amount of EUR 120.0 million from Socfin (2021: EUR 120.7 million and USD 75.8 million). Annual interests at rate of 4.25% is payable on this loan. As such, Socfinaf has paid an interest of EUR 8.8 million in 2022 compared to EUR 6.3 million in 2021.
In 2019, a subsidiary of Socfinaf, Okomu Oil Palm Company obtained a loan of Naira 10 billion, which contract stipulates that Okomu will use as mortgage guarantee, up to the loan granted, the 11,416 ha plantation. At 31st December 2022, the balance of the loan amounts to EUR 15 million (2021: EUR 14 million).
In 2019, a subsidiary of Socfinaf, Plantations Socfinaf Ghana (PSG), obtained a loan of EUR 16.5 million for the construction of an oil mill. This loan consists of a credit line of EUR 15 million and a bank overdraft of EUR 1.5 million. The contract stipulates that PSG pledges the oil mill as mortgage guarantee, up to the amount of the loan granted. At 31st December 2022, the balance of the loan amounts to EUR 8.1 million (2021: EUR 11.4 million) and the overdraft to nil (2020: nil).
In 2021, a subsidiary of Socfinaf, Okomu Oil Palm Company obtained a loan of Naira 2 billion, whose contract stipulates that Okomu will use as mortgage guarantee, up to the loan granted, the 11,416 ha plantation. At 31st December 2022, the balance of the loan amounts to EUR 3 million (2021: EUR 3 million).
In accordance with IFRS 8, the information analysed by management is based on the geographical distribution of political and economic risks. As a result, the sectors presented are Europe, Sierra Leone, Liberia, Côte d'Ivoire, Ghana, Nigeria, Cameroon, São Tomé and Principe and Congo (DRC).
Products from the Côte d'Ivoire, Ghana, Nigeria and Cameroon operating sectors come from the palm oil and rubber sales, those from the Liberia sector are only from the rubber sales, those from Sierra Leone, Ghana, São Tomé and Principe and Congo (DRC) come solely from the palm oil sales. Those in the Europe segment come from the provision of administrative services, assistance in managing the areas under plantation and the marketing of products outside the Group. The segment result of the Group is the profit from operations.
The stated figures originate from internal reporting. They do not include any consolidation or IFRS adjustments or restatements and are therefore not directly comparable to amounts reported in the consolidated statement of financial position and income statement.
| EUR | Revenue from ordinary business with external customers |
Revenue from ordinary business between segments |
Segmental profit / (loss) (*) |
|---|---|---|---|
| Europe | 0 | 0 | -3,136,523 |
| Sierra Leone | 46,760,015 | 0 | 19,240,229 |
| Liberia | 36,783,462 | 0 | 5,538,511 |
| Côte d'Ivoire | 176,301,157 | 69,873 | 37,488,425 |
| Ghana | 26,377,673 | 0 | 13,096,295 |
| Nigeria | 79,363,158 | 0 | 34,174,303 |
| Cameroon | 143,222,868 | 0 | 33,644,277 |
| São Tomé and Principe | 4,776,845 | 0 | -1,691,862 |
| Congo (DRC) | 13,117,259 | 0 | -2,058,986 |
| TOTAL | 526,702,438 | 69,873 | 136,294,671 |
| Elimination of revenue from intra-group activities | -69,873 | ||
| Depreciation, amortisation and impairment of bearer plants | -391,200 | ||
| Fair value of agricultural production | 8,260,872 | ||
| Other IFRS adjustments | 437,779 | ||
| Consolidation adjustments (intra-group and others) | -1,653,346 | ||
| Financial income | 7,128,210 | ||
| Financial expenses | -25,967,364 | ||
| Group share of income from associates | 7,264,010 | ||
| Income tax expense | -29,575,746 | ||
| Net Profit / (loss) for the period | 101,728,012 |
(*) Profit / (loss) for the period include operating expenses.
| * Segmental breakdown of profit / (loss) at 31st December 2022 |
|---|
| ---------------------------------------------------------------- |
| EUR | Revenue from ordinary business with external customers |
Revenue from ordinary business between segments |
Segmental profit / (loss) (*) |
|---|---|---|---|
| Europe | 0 | 0 | -2,823,953 |
| Sierra Leone | 58,553,604 | 0 | 21,826,293 |
| Liberia | 40,756,657 | 0 | 1,747,945 |
| Côte d'Ivoire | 200,451,040 | 136,882 | 38,224,054 |
| Ghana | 33,083,346 | 0 | 18,234,769 |
| Nigeria | 133,279,822 | 0 | 56,251,979 |
| Cameroon | 147,069,445 | 0 | 34,187,590 |
| São Tomé and Principe | 7,781,775 | 0 | 779,099 |
| Congo (DRC) | 16,366,246 | 0 | -398,915 |
| TOTAL | 637,341,934 | 136,882 | 168,028,860 |
| Elimination of revenue from intra-group activities | -136,882 | ||
| Depreciation, amortisation and impairment of bearer plants | -2,822,669 | ||
| Fair value of agricultural production | 5,789,099 | ||
| Other IFRS adjustments | 98,142 | ||
| Consolidation adjustments (intra-group and others) | 4,373,045 | ||
| Financial income | 8,730,381 | ||
| Financial expenses | -42,996,783 | ||
| Group share of income from associates | 11,297,778 | ||
| Income tax expense | -42,711,080 | ||
| Net Profit / (loss) for the period | 109,649,891 |
(*) Profit / (loss) for the period include other expenses for EUR 132.3 million, corresponding mainly to external services invoiced to plantations and related directly to the operational activity (road maintenance, …), and other operating expenses for EUR 25.1 million not related directly to the operational activity (other taxes, property taxes, …).
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Europe | 2,063,733 | 10,019,752 |
| Sierra Leone | 128,721,882 | 132,030,565 |
| Liberia | 121,732,913 | 115,585,545 |
| Côte d'Ivoire | 166,346,688 | 170,140,614 |
| Ghana | 57,837,090 | 78,724,410 |
| Nigeria | 145,216,147 | 139,257,028 |
| Cameroon | 184,081,225 | 175,101,980 |
| São Tomé and Principe | 28,111,519 | 27,822,826 |
| Congo (DRC) | 68,260,622 | 68,664,450 |
| Total at 31st December | 902,371,819 | 917,347,171 |
| IFRS 3 / IAS 16: Bearer plants | -25,692,506 | -23,504,111 |
| IAS 2 / IAS 41: Agricultural production | 11,304,647 | 6,128,867 |
| Other IFRS adjustments | -7,621,916 | -5,870,896 |
| Consolidation adjustments (intra-group and others) | -55,200,786 | -70,015,375 |
| Total consolidated segmental assets | 825,161,258 | 824,085,657 |
| Consolidated assets not included in segmental assets | ||
| Right-of-use assets | 8,169,574 | 7,484,998 |
| Investments in associates | 27,288,358 | 23,619,982 |
| Financial assets at fair value through other comprehensive income | 300,038 | 38 |
| Long-term advances | 1,664,770 | 1,745,720 |
| Deferred tax | 4,513,652 | 9,421,068 |
| Other non-current assets | 2,619,576 | 1,743,807 |
| Consolidated non-current assets | 44,555,968 | 44,015,612 |
| Other debtors | 21,440,996 | 8,995,522 |
| Current tax assets | 12,438,610 | 13,378,526 |
| Consolidated current assets | 33,879,606 | 22,374,048 |
| Total of consolidated assets in the segmental assets | 78,435,573 | 66,389,660 |
| Total assets | 903,596,831 | 890,475,316 |
Segmental assets are not part of internal reporting, they are included to meet the requirements of IFRS 8. They are derived from internal reporting and do not take into account any consolidation or IFRS restatements. The segmental assets include fixed assets, biological assets, trade receivables, inventories, cash and cash equivalents.
| EUR | 31/12/2022 | 31/12/2021 |
|---|---|---|
| Europe | 55,702,251 | 42,790,016 |
| Sierra Leone | 3,426,717 | 1,538,755 |
| Liberia | 13,882,723 | 15,247,453 |
| Côte d'Ivoire | 22,364,064 | 17,484,516 |
| Ghana | 1,066,056 | 972,502 |
| Nigeria | 6,950,565 | 9,223,850 |
| Cameroon | 20,840,351 | 25,172,132 |
| São Tomé and Principe | 3,492,126 | 3,468,418 |
| Congo (DRC) | 1,045,995 | 3,650,948 |
| Total at 31st December | 128,770,849 | 119,548,589 |
| Other IFRS adjustments | 104,157 | 48,895 |
| Consolidation adjustments (intra-group and others) | -16,240,597 | -6,873,055 |
| Total consolidated segmental liabilities | 112,634,409 | 112,724,429 |
| Consolidated liabilities not included in segmental liabilities | ||
| Total equity | 509,236,261 | 436,481,961 |
| Non-current liabilities | 195,848,335 | 273,829,367 |
| Current financial debts | 43,071,844 | 35,588,183 |
| Current lease liabilities | 1,532,064 | 1,105,090 |
| Current tax liabilities | 40,651,438 | 30,408,824 |
| Provisions | 622,480 | 337,462 |
| Total consolidated liabilities not included in segmental liabilities | 790,962,422 | 777,750,887 |
| Total equity and liabilities | 903,596,831 | 890,475,316 |
The segmental liabilities include trade payables and other payables.
* Costs incurred for acquisition of segmental assets during 2021
| EUR | Intangible assets |
Tangible assets | Biological assets |
TOTAL |
|---|---|---|---|---|
| Sierra Leone | 0 | 2,207,733 | 0 | 2,207,733 |
| Liberia | 0 | 1,613,464 | 3,808,942 | 5,422,406 |
| Côte d'Ivoire | 3,666 | 6,125,172 | 4,144,678 | 10,273,516 |
| Ghana | 0 | 1,978,271 | 137,231 | 2,115,502 |
| Nigeria | 0 | 27,082,944 | 1,632,191 | 28,715,135 |
| Cameroon | 0 | 9,970,796 | 3,177,201 | 13,147,997 |
| São Tomé and Principe | 0 | 256,352 | 0 | 256,352 |
| Congo (DRC) | 0 | 781,126 | 0 | 781,126 |
| TOTAL | 3,666 | 50,015,858 | 12,900,242 | 62,919,767 |
* Costs incurred for acquisition of segmental assets during 2022
| EUR | Intangible assets |
Tangible assets | Biological assets |
TOTAL |
|---|---|---|---|---|
| Sierra Leone | 0 | 2,125,221 | 0 | 2,125,221 |
| Liberia | 0 | 2,197,106 | 898,587 | 3,095,694 |
| Côte d'Ivoire | 32,003 | 5,966,349 | 3,393,844 | 9,392,196 |
| Ghana | 0 | 2,277,025 | 0 | 2,277,025 |
| Nigeria | 0 | 22,269,520 | 827,710 | 23,097,230 |
| Cameroon | 0 | 10,862,418 | 3,144,690 | 14,007,108 |
| São Tomé and Principe | 0 | 275,584 | 0 | 275,584 |
| Congo (DRC) | 0 | 906,694 | 0 | 906,694 |
| TOTAL | 32,003 | 46,879,918 | 8,264,832 | 55,176,752 |
Revenue from external customers:
| EUR | 2022 | 2021 |
|---|---|---|
| Palm | 408,462,769 | 327,502,389 |
| Rubber | 222,252,985 | 195,905,903 |
| Other agricultural activities | 469,211 | 657,341 |
| Others | 6,156,969 | 2,636,805 |
| TOTAL | 637,341,934 | 526,702,437 |
Revenue from external customers by origin of the customers and geographical location:
| EUR | 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Geographical Location Origin |
Europe | Côte d'Ivoire |
Nigeria | Cameroon | Congo | Sierra Leone |
Other African countries |
Rest of the world |
TOTAL |
| Sierra Leone | 4,084,258 | 0 | 0 | 2,382,645 | 0 | 40,293,112 | 0 | 0 | 46,760,015 |
| Liberia | 36,783,462 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 36,783,462 |
| Côte d'Ivoire | 114,868,414 | 32,387,669 | 11,377 | 33,785 | 3,023 | 51,792 | 1,480,759 | 27,464,339 | 176,301,157 |
| Ghana | 0 | 0 | 0 | 0 | 0 | 0 | 26,377,673 | 0 | 26,377,673 |
| Nigeria | 0 | 0 | 79,363,159 | 0 | 0 | 0 | 0 | 0 | 79,363,159 |
| Cameroon | 12,570,689 | 0 | 0 | 130,652,179 | 0 | 0 | 0 | 0 | 143,222,868 |
| São Tomé and Principe | 4,341,409 | 0 | 0 | 287,851 | 0 | 0 | 147,585 | 0 | 4,776,845 |
| Congo (DRC) | 0 | 0 | 0 | 0 | 13,117,259 | 0 | 0 | 0 | 13,117,259 |
| TOTAL | 172,648,231 | 32,387,669 | 79,374,536 | 133,356,460 | 13,120,282 | 40,344,905 | 28,006,017 | 27,464,339 | 526,702,438 |
| EUR | 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Geographical Location Origin |
Europe | Liberia | Côte d'Ivoire |
Nigeria | Cameroon | Congo | Sierra Leone |
Other African countries |
Rest of the world |
TOTAL |
| Sierra Leone | 3,356,599 | 0 | 0 | 0 | 0 | 0 | 55,197,004 | 0 | 0 | 58,553,603 |
| Liberia | 40,635,339 | 121,318 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 40,756,657 |
| Côte d'Ivoire | 130,232,762 | 0 | 31,878,695 | 0 | 0 | 0 | 0 | 2,350,374 | 35,989,209 | 200,451,040 |
| Ghana | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 33,083,346 | 0 | 33,083,346 |
| Nigeria | 0 | 0 | 0 | 133,279,822 | 0 | 0 | 0 | 0 | 0 | 133,279,822 |
| Cameroon | 15,688,005 | 0 | 0 | 412,650 | 130,968,790 | 0 | 0 | 0 | 0 | 147,069,445 |
| São Tomé and Principe | 7,196,400 | 0 | 0 | 0 | 205,800 | 0 | 0 | 379,575 | 0 | 7,781,775 |
| Congo (DRC) | 0 | 0 | 0 | 0 | 0 | 16,366,246 | 0 | 0 | 0 | 16,366,246 |
| TOTAL | 197,109,105 | 121,318 | 31,878,695 133,692,472 131,174,590 16,366,246 55,197,004 35,813,294 35,989,209 | 637,341,934 |
Revenue from external customers by business segment and geographical area:
| EUR | 2021 | |||
|---|---|---|---|---|
| Category Business Segment |
Palm | Rubber | Other agricultural products |
TOTAL |
| Sierra Leone | 46,760,015 | 0 | 0 | 46,760,015 |
| Liberia | 0 | 36,783,462 | 0 | 36,783,462 |
| Côte d'Ivoire | 36,369,827 | 137,737,562 | 2,193,768 | 176,301,157 |
| Ghana | 25,714,194 | 391,733 | 271,746 | 26,377,673 |
| Nigeria | 67,439,332 | 11,787,948 | 135,878 | 79,363,158 |
| Cameroon | 133,324,917 | 9,205,198 | 692,753 | 143,222,868 |
| São Tomé and Principe | 4,776,845 | 0 | 0 | 4,776,845 |
| Congo (DRC) | 13,117,259 | 0 | 0 | 13,117,259 |
| TOTAL | 327,502,389 | 195,905,903 | 3,294,145 | 526,702,438 |
| EUR | 2022 | |||
|---|---|---|---|---|
| Category Business Segment |
Palm | Rubber | Other agricultural products |
TOTAL |
| Sierra Leone | 58,553,604 | 0 | 0 | 58,553,604 |
| Liberia | 0 | 40,635,339 | 121,318 | 40,756,657 |
| Côte d'Ivoire | 39,919,401 | 157,537,222 | 2,994,417 | 200,451,040 |
| Ghana | 31,991,119 | 968,476 | 123,751 | 33,083,346 |
| Nigeria | 120,757,226 | 12,346,955 | 175,641 | 133,279,822 |
| Cameroon | 133,093,402 | 10,764,990 | 3,211,053 | 147,069,445 |
| São Tomé and Principe | 7,781,775 | 0 | 0 | 7,781,775 |
| Congo (DRC) | 16,366,246 | 0 | 0 | 16,366,246 |
| TOTAL | 408,462,773 | 222,252,981 | 6,626,180 | 637,341,934 |
The Group manages its capital and adjusts accordingly in response to changes in economic conditions and investment opportunities. To maintain or adjust the capital structure, the Group may issue new shares, repay part of the capital or adjust the payment of dividends to shareholders.
The Group also manages its capital by close monitoring of the ratio of debt over equity.
The financial risk for the companies within the Group comes mainly from changes in the selling price of agricultural commodities, foreign exchange and to a lesser extent, interest rate movements.
None of the countries in which the Group operates has a hyperinflationary economy or suffers from an immediate threat of price devaluation. Nevertheless, in a minority of countries in which the Group operates, the political system and economic stability remain fragile and could lead to currency devaluation or hyperinflation.
The Group regularly reviews its sources of financing as well as currency movements and its decisions are based on a variety of risks and opportunities which are themselves based on several factors including interest rates, currency and counterparties.
The Group markets its finished products at prices which may be influenced by commodity prices in international markets. It therefore faces the risk of volatility in the prices of these commodities.
The main policy of the Group's companies has always been to control its production costs in order to generate margins for the viability of structures in the event of a significant drop in the selling prices of raw materials and conversely to generate profit margins during the market downturns.
In parallel with this main policy, secondary policies have also been implemented to improve or consolidate profit margins:
The Group reduces its exposure to price risk by investing into different geographical markets and products.
The Group carries out transactions in local currencies, mainly being US dollar and Nigerian naira. In addition, financial instruments hedging against exchange rate fluctuations may not be available for certain currencies. This creates exposure to exchange rate fluctuations which may have an impact on the financial result denominated in euro.
In Nigeria, the availability of hard currency is extremely limited. The gap between the central bank rate (CBN) and OTC rates is widening, reaching 30 to 35% in 2022. For consolidation purposes, the Group uses the Central Bank of Nigeria (CBN) rates. These rates are disclosed in Note 1.9 to the financial statements. The impact of the Group's Nigerian operations on the consolidated result is disclosed in Note 32 (Segment information) to the financial statements.
Apart from the current currency hedging instruments for operational transactions, which remain relatively limited, the main policy of the Group is to finance its development projects in local currencies in the region given the significant investments made in the plantations and wherever possible, to reduce borrowings.
This risk includes a change in cash flows relating to short-term borrowings (often on a variable rate) and the relatively high level of base interest rates on cash and cash equivalents and developing markets when borrowing in local currency.
The first risk is put under control by an active policy of monitoring the evolution of local financial markets and sometimes short-term debt consolidation in the long term, if necessary. The second risk is considered by a systematic policy of putting local and international banks in competition with international lenders who can offer real investment and development opportunities at attractive rates.
Credit risk arises from the potential inability of clients to meet their contractual obligations.
To manage this risk, the Group ensures the payment of local sales in cash or the guarantee of the receivables by obtaining approved bills of exchange. The export sales of the plantations are centralised in the Group's sales structure, which applies either a cash payment policy or a commercial credit policy whose limits are defined by its Board of Directors.
Details on impairment of financial assets and liabilities, including measurement of expected credit losses, are disclosed in note 1.18.
Liquidity risk is defined as the risk that the Group cannot meet its obligations on time or at a reasonable price. This risk is mainly impacting plantations which are both the main source of cash and financing needs.
Given the specific economic and technological environment of each plantation, the Group manages this risk in a decentralised manner. However, both the cash available and the implementation of the financing are supervised by the Group management.
The Group chooses, whenever possible, to maintain financial liabilities and cash position (as mentioned respectively in Notes 22 and 18) with low credit risk institutions.
Current or future political instability in certain countries in which the Group operates may affect the ability to do business, generate revenue and impact the Group's profitability.
The political system in some of the Group's markets remains relatively fragile and remains potentially threatened by cross-border conflicts or wars between rival groups.
The Group's activities contribute to improve the quality of life in the countries in which the Group operates while improving the stability of its markets may lead to an appreciation of the value of the Group's companies located locally.
Diversifying the geographic mix of countries, economies and currencies in which the Group generates its revenues and cash flows reduces its exposure to emerging market risk.
The Group is aware of the environmental and social responsibility it has towards the local population and is implementing initiatives to this end.
Certain countries in which the Group operates have political regimes that may call into question foreign commercial interests by limiting their activities and may attempt to impose control over the Group's assets.
The diversification of the geographical distribution of the countries in which the Group generates its revenues and its cash flows reduces its exposure to this risk.
The Group is exposed to the risk of loss of confidence of the financial markets in relation to its ability to maintain a sound financial health considering:
The Group has published its responsible management policy in 2017, updated in 2022. This complements the Group's sustainable development commitments, formalised in 2012.
The Group's initiatives to monitor this risk are detailed in the information provided in the annual sustainable development report available on request at Group headquarters.
The Group is exposed to changes in value arising from fluctuations in exchange rates generated by its operating activities. However, as local turnover were made in the local currency and export sales are made in US dollar, the Group's exposure is limited to fluctuations in dollar against the euro. The impact on the result of a 10% increase or decrease (EUR/USD) in foreign currency financial instruments amounts to EUR 1.3 million.
Where the currency from sale is not the functional currency of the company and that currency is linked to a strong currency, the conversion is ensured at the time of the conclusion of the contract. Local turnover in local currency in 2022 (including US dollars) amounted to EUR 389.8 million. The global sales (mainly concluded in US dollars) in 2022 amounted to EUR 247.5 million.
The breakdown of fixed rate loans and variable rate loans is described in Note 22. Following the variable rate loan arrangement entered into by Socfinaf in 2021, the Group is exposed to interest rate risk. To control this risk, the management closely monitors the interests rate evolution.
At 31st December 2022, the trade receivables from global customers and local customers amount to EUR 14.8 million and EUR 8.8 million respectively. Accounts receivable from global customers are mainly receivables related to the sale of rubber. Palm oil is sold locally to local players (wide range of customers). The marketing of rubber is entrusted to Sogescol FR (equity accounted company). It trades either on the physical markets or directly with end customers.
| EUR | 2022 | 2021 |
|---|---|---|
| Trade receivables | 25,333,540 | 30,060,830 |
| Provision incurred mainly on non-operational receivables | -1,814,318 | -1,875,498 |
| Other receivables | 21,440,996 | 8,995,522 |
| Total net receivables | 44,960,218 | 37,180,854 |
| Amount not yet due | 44,704,982 | 36,392,777 |
| Amount due less than 6 months | 0 | 12,761 |
| Amount due for more than 6 months and less than one year | 255,236 | 755,648 |
| Amount due for more than one year | 0 | 19,668 |
| Total net receivables | 44,960,218 | 37,180,854 |
Société des Caoutchoucs du Grand Bereby ("SOGB"), a public limited company incorporated under Ivorian law and subsidiary of the Group, is involved in a dispute with the Caisse Nationale de Prévoyance Sociale ("CNPS") of the Côte d'Ivoire. This dispute concerns the tax audit of the benefits in kind that SOGB should have paid to CNPS for having provided housing to its employees.
Following an initial analysis for the period from 1st January 2010 to 31st December 2013, CNPS estimated an amount due of CFA 182 million, equivalent to EUR 277,000. Based on SOGB's calculations, the amount owed is CFA 32 million, equivalent to EUR 48,000.
Following a contestation, the case was brought before the Court of Sassandra. The latter invited the two parties to reach an amicable settlement of the dispute between them and to submit a transactional agreement, if necessary.
In the absence of an amicable settlement of the dispute, it would be up to the Sassandra Court to rule on the merits.
The CNPS carried out a second analysis covering the years 2014 through 2018. The CNPS added to the previous amount a sum of CFA 1,650 million, equivalent to EUR 2.5 million. The SOGB has recorded a provision of CFA 250 million, equivalent to EUR 381,000, which corresponds to the amount it considers to be effectively due.
The issue of housing on plantations in rural areas is a general one and concerns most agricultural and forestry companies, particularly those in the rubber, oil palm and banana sectors.
For this reason, actions have been taken by companies in the sector, supported by the Union of Agricultural and Forestry Companies ("UNEMAF") and the General Confederation of Companies of Côte d'Ivoire ("CGECI"), to obtain a clear position from the CNPS on this issue.
The CNPS had always granted a tolerance concerning the determination of benefits in kind constituted by the provision of housing in rural areas.
A proposal for arbitration was submitted to the Ministry of Employment and Social Protection by a working group comprising members of CGECI and UNEMAF. Working group meetings were scheduled to take place in the course of 2020, but these were postponed due to the health situation and have not been resumed to date.
At the date of the closing of the accounts, the amicable procedure is therefore still in progress. Its outcome will determine whether or not the case is referred to the Sassandra Court, which alone has the power to enforce the parties. Insofar as there is no legal constraint to date, and based on the above, management is of the opinion that no provision should be recorded because the probability of a claim is very low.
The Company holds interests in subsidiaries operating in Africa.
Given the economic and political instability in some of the related African countries (Sierra Leone, Liberia, Côte d'Ivoire, Ghana, Nigeria, Cameroon, São Tomé and Principe and Congo DRC), these holdings pose a risk in terms of exposure to political and economic changes.
On 24th February 2023, Socfinaf early repaid an amount of USD 14,750,000 i.e. EUR 13,828,989 to Socfin as a final reimbursement of the loan in USD.
| EUR | 2022 | 2021 |
|---|---|---|
| Audit (VAT included) | 758,845 | 683,798 |
The audit fees include all fees paid to the independent statutory auditor of the Group namely EY as well as those paid to member firms within EY network for the relevant years. No consulting work or other non-audit services have been performed by this firm in 2022 or in 2021.
Ladies and gentlemen,
We are pleased to present our annual report and to submit for your approval the annual accounts of our Company at 31st December 2022.
Socfinaf holds financial interests in portfolio companies which operate directly or indirectly in tropical Africa in the rubber and palm oil sectors.
The profit and loss account for the year, compared to that of the previous year, is as follows:
| (million EUR) | 2022 | 2021 |
|---|---|---|
| INCOME | ||
| Value adjustments in respect of financial assets | 0.4 | 3.0 |
| Income from equity investments | ||
| Dividends received | 46.9 | 32.9 |
| Capital gain on disposal of financial fixed assets | 0.1 | 0.7 |
| Other interest receivable and similar income | 7.4 | 3.4 |
| Total income | 54.8 | 40.0 |
| EXPENSES | ||
| Impairment: | ||
| On financial assets | 66.1 (1) |
12.0 |
| Other external expenses | 2.9 | 3.3 |
| Interest payable and similar expenses | 18.6 | 14.2 |
| Income tax | 4.7 | 4.0 |
| Total expenses | 92.3 | 33.5 |
| LOSS /PROFIT FOR THE FINANCIAL YEAR | -37.5 | 6.5 |
(1) At 31st December 2022, the Board of Directors decided to reduce the acquisition value of Brabanta by EUR 17,868,990 and the value of its loan by EUR 48,250,914.
| (EUR million) | 2022 | 2021 |
|---|---|---|
| Dividends | ||
| Socapalm | 16.0 | 18.0 |
| Okomu | 15.2 | 6.4 |
| Befin | 7.5 | 4.6 |
| Socfinco FR | 4.0 | 1.0 |
| Sogescol FR | 2.7 | 1.9 |
| Safa | 0.9 | 0.6 |
| Others | 0.6 | 0.4 |
| Total of dividends | 46.9 | 32.9 |
Interest on receivables amounted to EUR 1.7 million and foreign exchange gains to EUR 5.7 million.
The loss for the year amounted to EUR 37.5 million compared to a profit of EUR 6.5 million at December 31, 2021. This result is impacted by non-recurring impairments on Brabanta.
At 31st December 2022, Socfinaf's total assets amounted to EUR 398.6 million compared to EUR 499.2 million at 31st December 2021.
Socfinaf's assets mainly consist of financial fixed assets of EUR 182.9 million, long term loan receivables of EUR 178.8 million, amounts owed by affiliated undertaking and other receivables for EUR 34.7 million, and cash and equivalent EUR 1.9 million.
The equity amounted to EUR 221.3 million before appropriation of results.
Taking into account the positive cash flow of EUR 28 million generated by the activity and the repayment of the advances from the subsidiaries (SAC and PSG) for EUR 37 million, Socfinaf's indebtedness fell from EUR 240 million on 1st January to EUR 177 million on 31st December 2022.
During the year, the liquidation of Sodimex was completed. Following the liquidation of Sodimex, reversal of value adjustment for a total amount of EUR 0.4 million was recorded. A non-recurring impairment on Brabanta was recorded for a total amount of EUR 66.1 million. In addition, Socfinaf acquired Okomu shares for a total amount of 1.4 million euros and sold 5% of the capital of Management Associates to Socfin.
The investments are estimated at a total value of EUR 688.7 million and includes an unrealised gain of EUR 505.8 million compared to their acquisition costs, potentially adjusted. This unrealised capital gain, however, takes into account a valuation of Okomu at the NGN/USD exchange rate of the Central Bank of Nigeria. This exchange rate is significantly out of line with the OTC markets prices. Taking the latter into account, the capital gain would be reduced to EUR 419.9 million.
The main direct and indirect investments have evolved during the last months as follows:
| AFRICA | TOTAL | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EUR million | Sierra Leone SAC |
Liberia LAC & SRC |
Côte d'Ivoire SOGB |
SCC | Ghana PSG |
Nigeria OKOMU |
Cameroon | Sao Tomé SOCAPALM SAFACAM AGRIPALMA BRABANTA |
DRC | AFRICA | ||
| Actual 2021 | 46 769 | 36 789 | 124 400 | 49 439 | 26 305 | 79 148 | 114 731 | 32 801 | 4 777 | 13 111 | 528 271 | |
| TURNOVER | Actual 2022 | 58 436 | 40 675 | 140 233 | 57 224 | 31 615 | 132 867 | 112 852 | 35 406 | 7 782 | 16 345 | 633 434 |
| Forecasts 2022 | 55 578 | 40 396 | 140 184 | 56 882 | 32 825 | 146 909 | 112 087 | 37 094 | 7 726 | 15 879 | 645 560 | |
| Actual 2021 | 16 395 | 3 659 | 22 453 | 5 340 | 11 248 | 29 725 | 20 952 | 3 778 | -1 938 | -2 201 | 109 412 | |
| NET RESULT | Actual 2022 | 16 483 | 1 278 | 23 863 | 4 858 | 5 560 | 38 955 | 16 269 | 4 189 | 909 | -671 | 111 692 |
| Forecasts 2022 | 21 034 | 683 | 28 261 | 5 277 | 9 753 | 49 988 | 16 279 | 4 996 | 1 102 | 667 | 138 041 | |
| PALM PRODUCT | PALMIER | PALMIER | PALMIER | PALMIER | PALMIER | PALMIER | PALMIER | PALMIER | PALMIER | PALMIER | ||
| Mature | 12 349 | - | 7 471 | - | 6 140 | 19 060 | 29 197 | 5 230 | 2 100 | 6 072 | 87 619 | |
| AREA (HA) | Immature | - | - | - | - | - | - | 3 263 | 76 | - | - | 3 339 |
| Total | 12 349 | - | 7 471 | - | 6 140 | 19 060 | 32 460 | 5 306 | 2 100 | 6 072 | 90 958 | |
| Actual 2021 | 222 488 | - | 163 663 | - | 103 054 | 221 746 | 491 049 | 77 275 | 23 928 | 62 766 | 1 365 969 | |
| FFB | Actual 2022 | 218 363 | - | 148 447 | - | 94 048 | 247 175 | 475 157 | 73 423 | 27 328 | 54 291 1 338 232 | |
| Forecasts 2022 | 235 687 | - | 142 937 | - | 100 008 | 261 221 | 481 087 | 76 066 | 24 596 | 55 342 | 1 376 944 | |
| Actual 2021 | 52 307 | - | 38 935 | - | 27 538 | 46 478 | 152 323 | 16 948 | 5 636 | 15 993 | 356 159 | |
| PRODUCTION | Actual 2022 | 51 919 | - | 35 301 | - | 25 375 | 54 101 | 146 231 | 16 526 | 6 429 | 13 769 | 349 653 |
| Forecasts 2022 | 55 615 | - | 33 971 | - | 26 649 | 56 895 | 148 815 | 16 973 | 6 078 | 13 983 | 358 979 | |
| Actual 2021 | 23.51 | - | 22.77 | - | 26.72 | 20.82 | 22.02 | 21.67 | 23.56 | 24.32 | 22.63 | |
| EXTRATION RATE | Actual 2022 | 23.51 | - | 22.77 | - | 26.72 | 20.82 | 22.02 | 21.67 | 23.56 | 24.32 | 22.56 |
| Forecasts 2022 | 23.50 | - | 22.50 | - | 25.00 | 21.50 | 22.08 | 22.50 | 23.50 | 23.00 | 22.55 | |
| Actual 2021 | 46 769 | - | 36 370 | - | 25 914 | 67 450 | 112 425 | 23 596 | 4 777 | 13 111 | 330 411 | |
| TURNOVER | Actual 2022 | 58 436 | - | 39 919 | - | 30 688 | 120 544 | 111 190 | 24 811 | 7 782 | 16 345 | 409 715 |
| Forecasts 2022 | 55 578 | - | 39 576 | - | 32 093 | 133 779 | 110 746 | 25 988 | 7 726 | 15 879 | 421 365 | |
| RUBBER | CAOUTCHOUCCAOUTCHOUCAOUTCHOUCCAOUTCHOUCCAOUTCHOUCCAOUTCHOUCAOUTCHOUCCAOUTCHOUCCAOUTCHOUC | CAOUTCHOUC | ||||||||||
| Mature | - | 13 759 | 12 746 | - | 627 | 6 025 | 2 075 | 3 420 | - | - | 38 651 | |
| AREA (HA) | Immature | - | 3 022 | 3 116 | - | 315 | 1 310 | - | 932 | - | - | 8 695 |
| Total | - | 16 781 | 15 862 | - | 942 | 7 335 | 2 075 | 4 352 | - | - | 47 346 | |
| Actual 2021 | - | 26 872 | 67 727 | 39 273 | - | 9 277 | - | 6 919 | - | - | 150 068 | |
| PRODUCTION | Actual 2022 | - | 27 401 | 65 815 | 39 554 | - | 8 124 | - | 6 377 | - | - | 147 271 |
| Forecasts 2022 | - | 27 739 | 66 134 | 39 049 | - | 8 389 | - | 6 742 | - | - | 148 053 | |
| Actual 2021 | - | 36 789 | 88 031 | 49 439 | 392 | 11 698 | - | 9 205 | - | - | 195 554 | |
| TURNOVER | Actual 2022 | - | 40 675 | 100 313 | 57 224 | 927 | 12 323 | - | 10 595 | - | - | 222 057 |
| Forecasts 2022 | - | 40 396 | 100 609 | 56 882 | 732 | 13 130 | - | 11 105 | - | - | 222 853 |
The production data correspond to the quantities in tons of Milled Rubber and Crude Palm Oil. This table does not include refined oil production data (SPFS). Rubber production and sales are presented after elimination of intercompany transactions. Consolidated figures may however differ.
Management draws the attention that for its reporting purposes, the Group uses the rates of the Central Bank of Nigeria. However, in Nigeria, this exchange rate is significantly out of line with the OTC market prices. Taking the latter into account, the discount as at December 31, 2022 would reach 40%.
The loss of the year of EUR 37,542,749 increased by retained earnings of EUR 131,413,608, give total retained earnings of EUR 93,870,859 which it is proposed to carry forward again.
After this allocation, the total reserves will be as follows:
| Reserves | EUR |
|---|---|
| Legal reserve Other reserves Available reserve Retained earnings |
3,567,330 628,717 59,629 93,870,859 |
| 98,126,535 |
The Company did not buy back its own shares during the 2022 financial year.
During the financial year 2022, Socfinaf did not incur any expenses for research and development.
During the financial year 2022, the Company did not make use of any financial instruments.
Financial risk management policies are described in the notes to the Company's consolidated financial statements.
The Company has a permanent establishment in Fribourg (CH).
On 3rd September 2014, Compagnie du Cambodge declared that it holds a direct and indirect stake of 9% in the capital of Socfinaf. 7.07% is held by Compagnie du Cambodge, 1.08% by Société Industrielle et Financière de l'Artois, 0.49% by Bolloré and 0.36% by Compagnie des Glénans.
h) Art. 13. of the statutes: "The Company is administered by a Board composed of at least three members, whether natural or legal persons. The Directors are appointed for a period of six years by the General Meeting of Shareholders. They are eligible for re-election. The Directors are renewed by lottery, so that at least one Director will be leaving each year."
Art. 23. of the statutes: "In the event of the death or resignation of a Director, he may be provisionally replaced by observing in this respect the formalities provided for by law. In this case the General Meeting at its first meeting shall proceed to the final election."
Art. 32. of the statutes: "The present statutes can be modified by decision of the General Meeting specially convened for this purpose, in the forms and conditions prescribed by articles 450-3 and 450-8 of the law of 10th August 1915 on the commercial companies, as amended."
i) The powers of the members of the Board of Directors are defined in Art. 17 et seq. of the statutes of the Company. They provide in particular that: "The Board of Directors is vested with the broadest powers for the administration of the Company. All matters not expressly reserved to the General Meeting by the Articles of Incorporation or the law fall within the competence of the Board."
In addition, the statutes provide in Art. 6: "In the event of a capital increase, the Board of Directors shall determine the conditions of issue of the shares.
The new shares to be paid up in cash shall be offered in preference to the current shareholders, in accordance with the law.
In the event of the issue of shares by contribution in cash or in the event of the issue of instruments which fall within the scope of application of article 420-27 of the law on companies and which are paid for in cash, including and in a non-exhaustive manner, convertible bonds allowing their holder to subscribe to shares or to be allocated shares, shareholders have preferential subscription rights in proportion to their participation with regard to all these issues in accordance with the provisions of company law.
The General Meeting called to deliberate, under the conditions required for the amendment of the Articles of Association, on the increase in the share capital or on the authorisation to increase the capital in accordance with Article 420-23 of the law of commercial companies, may limit or cancel the preferential subscription right or authorise the Board to do so in the manner and under the conditions provided for by law."
The other points of Art. 11 (1) are not applicable, namely:
The responsible management policy is based on the Group's three pillars of commitment, alongside its specific commitment to transparency: rural development, workers and local communities, and environment. These commitments form the basis of key initiatives aimed at improving long-term economic performance, social wellbeing, health, safety and natural resource management.
An implementation plan for this policy has been defined and implemented throughout 2022.
The efforts and actions undertaken by the Socfin Group in this area are detailed in a regularly updated dashboard as well as in a separate annual report ("Sustainable Development Report").
The responsible management policy, the dashboard and the annual sustainable development report are available on the Group's website.
The estimated value of Socfinaf at 31st December 2022 before allocation of the result for the financial year amounts to EUR 727.1 million, being EUR 41.76 per share compared to EUR 31.53 in the previous financial year. This valuation incorporates the unrealised capital gains of the portfolio. This unrealised capital gain, however, takes into account a valuation of Okomu at the NGN/USD exchange rate of the Central Bank of Nigeria. This exchange rate is significantly out of line with the price obtained on the OTC markets. Taking the latter into account, the estimated value would be reduced to EUR 36 per share.
As a reminder, the market share price was EUR 11.80 at the end of 2022 against EUR 12.00 a year earlier.
On 24th February 2023, Socfinaf early repaid an amount of USD 14,750,000 i.e. EUR 13.828.989 to Socfin as a final reimbursement of the loan in USD.
It must be emphasized that the Group's investments in South-East Asia may be subject to political and economic risks. On-site executives and managers follow the day-to-day evolution of the situation.
In addition, the Company may be exposed to foreign exchange risks on long-term advances to subsidiaries. The assessment of this risk is described in the notes to the Company's statutory financial statements.
The result for the 2023 financial year will depend to a large extent on the dividend distributions of the subsidiaries; these are not yet fixed.
The term served as director by Mr. Vincent Bolloré and Gbenga Oyebode expire this year. It will be proposed at the next Annual General Meeting to renew these mandates for six years until the Annual General Meeting of 2029.
Besides, it will be also proposed at the next Annual General Meeting to appoint Mr. George Mensah as Director of the Company.
The Board of Directors
| ASSETS | Note | 2022 EUR |
2021 EUR |
|---|---|---|---|
| FIXED ASSETS | |||
| Financial assets | 3 | ||
| Shares in affiliated undertakings | 182,880,279.55 | 199,522,760.65 | |
| Loans to affiliated undertakings | 178,795,759.27 | 269,552,427.50 | |
| 361,676,038.82 | 469,075,188.15 | ||
| CURRENT ASSETS | |||
| Debtors | |||
| Amounts owed by affiliated undertakings | |||
| becoming due and payable within one year | 33,284,161.85 | 17,607,793.72 | |
| Other debtors | |||
| becoming due and payable after one year | 0.00 | 0.00 | |
| becoming due and payable within one year | 1,452,480.00 | 2,333,506.60 | |
| 34,736,641.85 | 19,941,300.32 | ||
| Investments | |||
| Shares in affiliated undertakings | 248,406.09 | 248,406.09 | |
| Cash at bank and in hand | 1,939,330.90 | 9,960,182.80 | |
| TOTAL ASSETS | 398,600,417.66 | 499,225,077.36 |
The accompanying notes form an integral part of the financial statements.
| Note | 2022 | 2021 | |
|---|---|---|---|
| CAPITAL, RESERVES AND LIABILITIES | EUR | EUR | |
| CAPITAL AND RESERVES | 4 | ||
| Issued capital | 35,673,300.00 | 35,673,300.00 | |
| Share premium account | 87,453,866.21 | 87,453,866.21 | |
| Reserves | |||
| Legal reserve | 3,567,330.00 | 3,567,330.00 | |
| Other reserves, including the fair value reserve | |||
| Other available reserves | 688,346.92 | 688,346.92 | |
| 4,255,676.92 | 4,255,676.92 | ||
| Profit brought forward | 131,413,608.00 | 124,914,492.68 | |
| Profit for the financial year | -37,542,749.31 | 6,499,115.32 | |
| 221,253,701.82 | 258,796,451.13 | ||
| CREDITORS | |||
| Amounts owed to credit institutions | |||
| becoming due and payable within one year | 9.03 | 41.50 | |
| Trade creditors | |||
| becoming due and payable within one year | 220,624.09 | 110,860.00 | |
| Amounts owed to affiliated undertakings | 5 | ||
| becoming due and payable after more than one year | 120,000,000.00 | 186,463,934.52 | |
| becoming due and payable within one year | 14,947,456.73 | 12,317,062.61 | |
| Amounts owed to undertakings with which the | 6 | ||
| undertaking is linked by virtue of participating interests becoming due and payable after more than one year |
20,201,643.84 | 20,201,643.84 | |
| becoming due and payable within one year | 20,203,836.00 | 20,201,644.00 | |
| Other creditors | |||
| Tax authorities | 1,665,126.39 | 1,125,420.00 | |
| Other creditors | |||
| becoming due and payable within one year | 108,019.76 | 8,019.76 | |
| 177,346,715.84 | 240,428,626.23 | ||
| TOTAL CAPITAL, RESERVES AND LIABILITIES | 398,600,417.66 | 499,225,077.36 |
The accompanying notes form an integral part of the financial statements.
| Note | 2022 EUR |
2021 EUR |
|
|---|---|---|---|
| Raw materials and consumables and others external expenses |
|||
| Other external expenses | -2,685,678.73 | -2,553,559.66 | |
| Value adjustments in respect of current assets |
0.00 | -12,463.34 | |
| Other operating expenses | -248,765.87 | -646,464.19 | |
| Income from participating interests derived from affiliated undertakings |
7 | 46,958,007.91 | 33,539,007.13 |
| Other interest receivable and similar income | |||
| derived from affiliated undertakings other interest and similar income |
8 | 7,273,633.68 109,529.96 |
3,124,153.86 255,759.64 |
| Value adjustments in respect of financial assets | |||
| and of investments held as current assets | 3 | -65,679,615.45 | -8,947,506.25 |
| Interest payable and similar expenses derived from affiliated undertakings |
-16,979,066.77 | -12,610,509.22 | |
| other interest and similar expenses | -1,618,491.65 | -1,618,065.61 | |
| Tax on profit | -4,134,647.39 | -3,506,212.04 | |
| Profit after taxation | -37,005,094.31 | 7,024,140.32 | |
| Other taxes not shown above | -537,655.00 | -525,025.00 | |
| Profit for the financial year | -37,542,749.31 | 6,499,115.32 |
| 2022 EUR |
2021 EUR |
|
|---|---|---|
| Retained earnings | 93,871,858.69 | 131,413,608.00 |
| From the balance: | ||
| 10% to the Board of Directors 90% to 17,836,650 shares |
0.00 0.00 |
0.00 0.00 |
| 93,870,858.69 | 131,413,608.00 | |
| Dividend per share | 0.00 | 0.00 |
SOCFINAF S.A., (the "Company'') was incorporated on 20th November 1972 as a public limited company and adopted the status of "Soparfi" on 10th January 2011.
The duration of the Company is unlimited, and its registered office is established in Luxembourg. The Company is registered in the Register of Commerce and Companies under number B6225, and is listed on the Luxembourg Stock Exchange under ISIN number LU0056569402.
The object of the company is (i) the acquisition, holding and disposal, in any form whatsoever and by any means, directly or indirectly, of participations, rights and interests, as well as bonds of Luxembourg or foreign companies, (ii) the acquisition by contribution, purchase, subscription or otherwise, as well as the disposal by sale, transfer, exchange or otherwise, of shares, interests, bonds, debts, notes and other securities or financial instruments of any kind (in particular bonds or shares issued by Luxembourg or foreign collective investment funds or any other similar body), loans or any other credit line, as well as contracts relating thereto and (iii) the holding, administration, development and management of a portfolio of assets (composed in particular of the assets described in points (i) and (ii) above).
The company may also acquire and develop any patents and other rights relating to or supplementing those patents.
The company may borrow in any form whatsoever. It may enter into any kind of loan agreement and may issue debt securities, bonds, certificates, shares, profit shares, warrants and all kinds of debt and equity securities, including by virtue of one or several issue programmes. The company may lend funds, including those resulting from borrowings and/or securities issues, to its subsidiaries, affiliates and any other company.
Although the Company is included in the consolidated financial statements of Société Financière des Caoutchoucs, abbreviated as "Socfin", which is the largest entity in which the Company is consolidated, the Company also prepares consolidated financial statements which are published in accordance with the law and which are available at the Company's registered office (4, avenue Guillaume, L-1650 Luxembourg) or on the Internet site: www.socfin.com.
The financial year begins on 1st January and ends on 31st December.
The annual financial statements are prepared in accordance with Luxembourg legal and regulatory requirements in force in Luxembourg under the historical cost convention.
The accounting policies and valuation principles are, apart from the rules imposed by the law of 19th December 2002, determined and implemented by the Board of Directors.
The preparation of the annual financial statements involves the use of a number of critical accounting estimates. It also requires the Board of Directors to exercise its judgement in the application of accounting principles. Any change in assumptions may have a significant impact on the financial statements for the period in which the assumptions are changed. The Board of Directors believes that the underlying assumptions are appropriate and that the financial statements give a true and fair view of the financial position and results of the Company.
The Company keeps its accounts in euros (EUR); the annual accounts are expressed in this currency.
Transactions in a currency other than the balance sheet currency are converted into the balance sheet currency at the exchange rate prevailing on the date of the transaction.
the acquisition price of the financial assets, expressed in a currency other than the currency of the balance sheet, remain converted at the historical exchange rate, with the exception of the current portion of receivables, which is valued individually at the lower of their historical exchange rate value or their value determined on the basis of the exchange rate prevailing at the balance sheet date;
bank accounts expressed in a currency other than the currency of the balance sheet are valued on the basis of the exchange rate prevailing on the balance sheet date. Foreign exchange gains and losses are recognised in the current period;
Realised foreign exchange gains and losses and unrealised losses are recognised in the profit and loss account. Unrealised foreign exchange gains are not recognised.
If there is an economic link between two transactions, unrealised exchange differences are recognised at the corresponding unrealised exchange loss.
Shares in affiliated undertakings are valued at acquisition cost, which includes incidental expenses. Receivables from affiliated companies are valued at their nominal value, which includes incidental expenses.
In the event of an impairment that, in the opinion of the Board of Directors, is of a lasting nature, these financial fixed assets are subject to value adjustments in order to give them the lower value that should be attributed to them on the balance sheet date, as determined by the Board of Directors.
In order to determine the value adjustments that are permanent at the balance sheet date, the Board of Directors carries out the following analyses for each investment on an individual basis:
1/ For investments listed on public markets, the Board of Directors compares the net book value of the investment with its shares in the market based on the stock market price at the closing date. When the market value is greater than or equal to the net book value, the Board of Directors considers that no value adjustment needs to be recorded at the closing date. However, when the market value is lower than the net book value, the Board of Directors tests the net book value against the share in the revalued net assets of the investment.
2/ If the net book value exceeds the market value or the equity value for unlisted investments, the Board of Directors compares the net book value with the share held in the revalued net assets as well as in the consolidated net assets (i.e. equity attributable to owners of the parent company) if the subsidiary prepares consolidated accounts.
If one of these values is greater than or equal to the net book value of the investment, no value adjustment is recognised.
3/ When both values are lower than the net book value of the investment:
However, the Board of Directors may take other factors into consideration and, in particular, in view of the very long period of immaturity of young plantation, it considers that the value adjustment is not permanent for a plantation where more than half of the planted area is not being used.
Loans to affiliated companies are subject to a value adjustment in the event that the net book value test by discounting future cash flows to shareholders does not support the full repayment of the receivable.
These value adjustments are not maintained when the reasons for which they were established have ceased to exist.
Receivables are recorded at their nominal value. They are subject to value adjustments when their recovery is compromised. These value adjustments are not continued if the reason for which the value adjustments were made have ceased to apply.
Securities are valued at the lower of cost, including incidental costs or market value. A value adjustment is recorded when the market price is lower than the purchase price. Value adjustments are not maintained if the reasons for their negotiations have ceased to exist.
Debts are recorded at their reimbursement value. When the amount to be repaid on the debts exceeds the amount received, the difference is recorded to the profit and loss account.
In February 2022, a number of countries (including the US, UK and EU) imposed sanctions against certain entities and individuals in Russia as a result of the official recognition of the Donetsk People Republic and Lugansk People Republic by the Russian Federation. Announcements of potential additional sanctions have been made following military operations initiated by Russia against the Ukraine on 24th February 2022.
Due to the geopolitical tensions since February 2022, there has been a significant increase in volatility on the securities and currency markets, as well as a significant depreciation of the ruble against the US dollar and the euro.
Although neither the company's performance and going concern nor operations, have been significantly impacted by the above during 2022, the Board of Directors continues to monitor the evolving situation and its impact on the financial position and results of the company.
| Shares in | Loans to | Total | |||||
|---|---|---|---|---|---|---|---|
| affiliated undertakings | Affiliated undertakings | ||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||
| EUR | EUR | EUR | EUR | EUR | EUR | ||
| Acquisition cost/nominal value | |||||||
| at the beginning of the year | 239,798,533.55 | 244,779,050.37 | 278,532,028.78 | 308,818,543.42 | 518,330,562.33 | 553,597,593.79 | |
| Increases | 1,428,708.64 | 1.00 | 3,049,548.88 | 3,274,229.42 | 4,478,257.52 | 3,274,230.42 | |
| Decreases | -642,487.94 | -4,980,517.82 | -45,555,303.46 | -33,560,744.06 | -46,197,791.40 | -38,541,261.88 | |
| Acquisition cost/nominal value | |||||||
| at the end of the year | 240,584,754.25 | 239,798,533.55 | 236,026,274.20 | 278,532,028.78 | 476,611,028.45 | 518,330,562.33 | |
| Value adjustments | |||||||
| at the beginning of the year | -40,275,772.90 | -40,307,867.93 | -8,979,601.28 | 0.00 | -49,255,374.18 | -40,307,867.93 | |
| Impairment | -17,868,989.74 | -3,000,090.00 | -48,250,913.65 | -8,979,601.28 | -66,119,903.39 | -11,979,691.28 | |
| Reversal | 440,287.94 | 3,032,185.03 | 0.00 | 0.00 | 440,287.94 | 3,032,185.03 | |
| Value adjustments | |||||||
| at the end of the year | -57,704,474.70 | -40,275,772.90 | -57,230,514.93 | -8,979,601.28 | -114,934,989.63 | -49,255,374.18 | |
| Net book value | |||||||
| at the end of the year | 182,880,279.55 | 199,522,760.65 | 178,795,759.27 | 269,552,427.50 | 361,676,038.82 | 469,075,188.15 |
Information on companies in which the Company holds at least 20% of the capital
| Entity | Country | % held | Net book value EUR |
Year end | Currencies of the annual accounts |
Net equity in foreign currency at 31/12/2022 (including net income) (*) |
Net income in foreign currency at 31/12/2022 |
|---|---|---|---|---|---|---|---|
| Plantations Socfinaf Ghana | Ghana | 100.00 | 32,503,775 | 31.12.2022 | GHS | 225,168,097 | 77,289,093 |
| Socfin Agricultural Company | Sierra Leone | 93.00 | 20,445,954 | 31.12.2022 | USD | 16,376,492 | 19,372,491 |
| Liberian Agricultural Company | Liberia | 100.00 | 13,793,904 | 31.12.2022 | USD | 57,140,499 | 4,744,936 |
| Salala Rubber Corporation | Liberia | 64.91 | 0 | 31.12.2022 | USD | 2,861,133 | -421,173 |
| Bereby-Finances "BEFIN" | Côte d'Ivoire | 87.06 | 13,604,405 | 31.12.2022 | XAF | 15,983,921,022 | 5,557,643,910 |
| Socapalm | Cameroon | 67.46 | 40,640,840 | 31.12.2022 | XAF | 71,120,117,643 | 13,743,634,055 |
| Okomu Oil Palm Company | Nigeria | 66.38 | 22,151,171 | 31.12.2022 | NGN | 39,416,747,556 | 11,316,334,412 |
| Brabanta | Congo (DRC) | 100.00 | 0 | 31.12.2022 | CDF | 71,046,617,102 | -5,175,012,473 |
| Induservices | Luxembourg | 30.00 | 30,000 | 31.12.2022 | EUR | ||
| Socfinde | Luxembourg | 20.00 | 801,000 | 31.12.2022 | EUR | 327,636 6,023,090 |
88,113 139,836 |
| Terrasia | Luxembourg | 33.28 | 246,705 | 31.12.2022 | EUR | 615,003 | 30,516 |
| SAFA | France | 100.00 | 26,535,600 | 31.12.2022 | EUR | 21,845,650 | 2,176,216 |
| Induservices FR | Switzerland | 50.00 | 642,202 | 31.12.2022 | EUR | 1,095,421 | 102,087 |
| Socfinco FR | Switzerland | 50.00 | 486,891 | 31.12.2022 | EUR | 16,432,078 | 8,833,675 |
| Sogescol FR | Switzerland | 50.00 | 1,985,019 | 31.12.2022 | USD | 17,955,034 | 8,864,552 |
| Sodimex FR | Switzerland | 50.00 | 621,424 | 31.12.2022 | EUR | 4,454,052 | 906,872 |
| Centrages | Belgium | 50.00 | 4,074,577 | 31.12.2022 | EUR | 3,378,041 | 223,191 |
| Immobilière de la Pépinière | Belgium | 50.00 | 3,015,798 | 31.12.2022 | EUR | 3,656,008 | 10,856 |
| Socfinco | Belgium | 50.00 | 879,550 | 31.12.2022 | EUR | 1,537,073 | -6,383 |
| STP Invest | Belgium | 100.00 | 0 | 31.12.2022 | EUR | 1,773,693 | -1,110 |
182,458,815
(*) Based on unaudited financial statements at 31st December 2022.
At 31st December 2022, the Board of Directors decided to reduce the acquisition value of Brabanta by EUR 17,868,990 following the update of the portfolio valuation.
At 31st December 2022, the Board of Directors is of the opinion that there is no permanent value decrease for the shares in affiliated undertakings.
At 31st December 2022, loans to affiliated undertakings are as follows:
| Related parties | Currency | Balance in currency |
Balance In EUR |
Unrealised exchange gains / (losses) * EUR |
|---|---|---|---|---|
| Induservices | EUR | 130,000 | 130,000 | 0 |
| Management Associates | EUR | 280,000 | 280,000 | 0 |
| Salala Rubber Corporation | USD | 44,684,218 | 37,289,650 | 4,604,423 |
| Brabanta | USD | 21,000,000 | 19,688,730 | 0 |
| Socfin Agricultural Company | USD | 74,159,256 | 60,804,114 | 8,724,534 |
| Liberian Agricultural Company | USD | 36,404,647 | 32,309,252 | 1,822,238 |
| Plantations Socfinaf Ghana | USD | 12,000,000 | 10,194,062 | 1,056,641 |
| Agripalma | EUR | 18,099,947 | 18,099,947 | 0 |
| Situation at 31st December 2022 | 269,552,427 | 16,207,836 |
* In accordance with Luxembourg legal and regulatory provisions and generally accepted accounting practices, receivables from affiliated undertakings are translated at the historical exchange rate and the unrealised foreign exchange gain or loss is not recognised in the profit and loss account, with the exception of the current portion of receivables, which is valued individually at the lower of their historical exchange rate value or their value determined on the basis of the exchange rate prevailing at the balance sheet date.
At 31st December 2022, the Board of Directors decided to reduce the value of the shareholder advance granted to Brabanta by EUR 48,250,914 following the update of the portfolio valuation.
At 31st December 2022, the Board of Directors are of the opinion that these loans are recoverable as such, no impairment loss has been accounted for.
| EUR | Issued capital | Share premium | Legal reserves | Other reserves | Retained earnings |
Results for the year |
|---|---|---|---|---|---|---|
| Balance at 1st January 2021 | 35,673,300.00 | 87,453,866.21 | 3,567,330.00 | 688,346.92 | 153,563,826.44 | -28,649,333.76 |
| Allocation of the result for the 2020 financial year following decision of the General Meeting held on 25th May 2021 |
||||||
| • Retained earnings | -28,649,333.76 | 28,649,333.76 | ||||
| Results for the financial year | 6,499,115.32 | |||||
| Balance at 31st December 2021 Allocation of the result for the 2021 financial year following decision of the General Meeting held on 31st May 2022 |
35,673,300.00 | 87,453,866.21 | 3,567,330.00 | 688,346.92 | 124,914,492.68 | 6,499,115.32 |
| • Retained earnings | 6,499,115.32 | -6,499,115.32 | ||||
| Results for the financial year | -37,542,749.31 | |||||
| Balance at 31st December 2022 | 35,673,300.00 | 87,453,866.21 | 3,567,330.00 | 688,346.92 | 131,413,608.00 | -37,542,749.31 |
At 31st December 2022 and 2021, the issued and fully paid share capital is EUR 35,673,300 represented by 17,836,650 shares without nominal value.
At 31st December 2022 and 2021, the share premium amounted to EUR 87,453,866.
The annual profit is subject to a levy of 5% to be allocated to a legal reserve. This allocation ceases to be mandatory when the reserve reaches 10% of the share capital. The legal reserve cannot be distributed.
At 31st December 2022, this item consists mainly of:
At 31st December 2022 and 2021, the maturity of debts to affiliated undertakings is as follows:
| 2022 | 2021 | |
|---|---|---|
| Amounts owed to affiliated undertakings: | EUR | EUR |
| - becoming due and payable within one year |
14,947,457 | 12,317,062 |
| - becoming due and payable between one to five years |
120,000,000 | 186,463,935 |
| 134,947,457 | 198,780,997 |
At 31st December 2022, this item consists mainly of:
| 2022 | 2021 | |
|---|---|---|
| EUR | EUR | |
| Dividends received | 46,939,258 | 32,868,364 |
| Capital gain on disposal of financial fixed assets | 18,750 | 670,643 |
| 46,958,008 | 33,539,007 |
| 2022 | 2021 | |
|---|---|---|
| EUR | EUR | |
| Interest on related companies' receivables | 7,273,634 | 3,124,154 |
The Company is subject to all taxes to which Luxembourg commercial companies are subject.
During 2022, the members of the Board of Directors received EUR 9,062 (2021: EUR 11,562) as attendance fees and EUR 230,000 (2020: EUR 630,000) as Directors' fees.
During 2022, no advances or loans were granted to the Board members.
Most of the investments are held directly or indirectly in companies operating in Africa, particularly in the following countries:
Given the political instability that exists in these countries and their economic fragility (dependence on international aid, inflation in some cases, civil wars, etc), the investments held by the Company present a risk in terms of exposure to political and economic fluctuations.
On 24th February 2023, the company early repaid an amount of USD 14,750,000 i.e. EUR 13,828,989 to Socfin as a final reimbursement of the loan in USD.
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