Dekel Agri-Vision Plc (LON:DKL), the West African agribusiness company focused on building a portfolio of sustainable and diversified projects, has announced its unaudited interim results for the six months ended 30 June 2024.
Financial Highlights
Palm Oil Operation
· 10.1% decrease in H1 2024 revenues to €18.6m (H1 2023: €20.7m) due to the 17.6% decrease in Crude Palm Oil (‘CPO’) sales prices more than offsetting the 7.7% increase in CPO sales volumes – includes sale of CPO, Palm Kernel Oil (‘PKO’), Palm Kernel Cake (‘PKC’) and Nursery Plants.
· 11.5% increase in H1 2024 gross margin percentage compared to H1 2023 primarily due to lower Fresh Fruit Bunches (‘FFB’) costs more than offsetting the lower CPO sales prices. In addition, we reported a 158.8% increase in Palm Kernel Oil (‘PKO’) volumes in H1 2024 compared to H1 2023.
· 12.1% increase in EBITDA to €3.7m (2023: €3.3m) due to continued prudent cost control during an inflationary environment.
Cashew Operation
· H1 2024 revenues remained unchanged at €0.6m. The unchanged revenue was due to previously reported issues in the peeling and shelling sections which should be rectified over the next 6-8 weeks.
· H1 2024 EBITDA loss of €0.9m compared to an EBITDA loss of €0.8m.
| Six months ended 30 June | H1 2024 | H1 2023 | % Change |
| Palm Oil Operation | |||
| Revenue | €18.6m | €20.7m | -10.1% |
| Gross Margin | €3.8m | €3.8m | Nil |
| Gross Margin % | 20.4% | 18.3% | 11.5% |
| EBITDA | €3.7m | €3.3m | 12.1% |
| Cashew Operation | |||
| Revenue | €0.6m | €0.6m | Nil |
| EBITDA | (€0.9m) | (€0.8m) | -12.5% |
| Dekel Group | |||
| Revenue | €19.2m | €21.3m | -9.9% |
| EBITDA | €2.8m | €2.5m | 12.0% |
Operational Highlights – Palm Oil Operation
· The Palm Oil Operation experienced a consistent high season albeit slightly below the relatively strong H1 2023 results with Fresh Fruit Bunch (‘FFB’) volumes and Crude Palm Oil (‘CPO’) production decreasing marginally by 8.1% and 7.7% respectively compared to H1 2023.
· CPO sales quantities increased 7.7% in H1 2024 compared to last year. This is largely due to last year’s high season arriving much later than normal, leading to high CPO stock levels at the end of H1 2023.
· The H1 2024 average CPO sales price achieved was historically strong at €770 per tonne, albeit 17.6% below H1 2023 CPO sales price. International prices continue to remain steady at approximately €900 per tonne and we continue to see local CPO prices gradually increase towards the international price with June 2023 prices achieved of €773 per tonne.
· The CPO extraction rate for H1 2024 of 22.0% was slightly higher than H1 2023.
| H1-2024 | H1-2023 | % Change | |
| FFB processed (tonnes) | 105,444 | 114,745 | -8.1% |
| CPO Extraction Rate | 22.0% | 21.9% | 0.5% |
| CPO production (tonnes) | 23,236 | 25,166 | -7.7% |
| CPO Sales (tonnes) | 22,360 | 20,758 | 7.7% |
| Average CPO price per tonne | €770 | €934 | -17.6% |
| Palm Kernel Oil (‘PKO’) production (tonnes) | 1,367 | 1,442 | -5.2% |
| PKO Sales (tonnes) | 1,333 | 515 | 158.8% |
| Average PKO price per tonne | €803 | €947 | -15.2% |
Cashew Operation Update
· The Cashew Operation operated on a conservative basis during H1 2024 while we awaited the arrival and commissioning of new off the shelf shelling and peeling equipment.
· All new shelling and peeling equipment was ordered in January 2024. Shipments related to shelling machinery arrived in late July and the items related to the peeling section arrived on site yesterday.
· Commissioning of new equipment is underway and being overseen by a highly credentialled cashew processing consultant and we expect to see production volume materially increase over the next 6-8 weeks.
· Whole cashew sales prices have increased since the end of H1 2024 which should be reflected in our Q3 production and sales update which will be reported on or around 10 October 2024.
| H1-2024 | H1-2023 | ||
| RCN Inventory | |||
| Opening RCN Inventory (tonnes) | 1,751 | 1,841 | |
| RCN Purchased (tonnes) | 419 | 1,378 | |
| RCN Processed (tonnes) | 588 | 759 | |
| Closing RCN Inventory (tonnes) | 1,582 | 2,460 | |
| Cashew Processing | |||
| Opening Cashews (tonnes) | 154* | 111 | |
| RCN Processed (tonnes) | 588 | 759 | |
| Cashew Extraction Rate | 19.6% | 23.3% | |
| Cashew Produced (tonnes) | 115 | 177 | |
| Cashew Sales (tonnes) | 215 | 170 | |
| Closing Cashews (tonnes) | 54 | 118 | |
| Average Sales prices per tonne | |||
| – Whole Unpeeled Cashews | €3,300 | €3,500 | |
| – Whole Peeled Cashews | €4,250 | €4,400 | |
| – Mixed Peeled Cashews | €3,100 | €3,750 |
* Opening cashew adjustment of 22tn
Lincoln Moore, Dekel Agri-Vision’s Executive Director, said: “The Palm Oil Operation continues to perform very well with H1 2024 EBITDA increasing 12.1% compared to H1 2023. With the replacement shelling and peeling equipment all on site and being assembled, the Cashew Operation is on the cusp of delivering on its promise over the coming months. We look forward to reporting the upside of the Cashew operation and seeing the benefits of both operations working well in tandem”.
