INTERIM FINANCIAL REPORT
HALF-YEAR ENDED 30 JUNE 2024
(UNAUDITED)
GROUPE SOCFIN • SOCFINAF
4, Avenue Guillaume • 1650 Luxembourg • Luxembourg • T : + 352 44 28 77 • E: info@socfin.com • www.socfin.comRC Luxembourg B 6225
SOCFINAF S.A | 3 |
Board of Directors | 3 |
Chief Financial Officer | 3 |
Independent statutory auditor | 3 |
Registered office | 3 |
Statement of compliance | 4 |
Management report on the unaudited interim consolidated financial statements as at 30 June 2024 | |
............................................................................................................................... | 5 |
Activities | 5 |
Portfolio | 5 |
Consolidated income | 5 |
Consolidated statement of financial position | 5 |
Consolidated cash flows | 6 |
Outlook 2024 | 6 |
Distribution of an interim dividend | 6 |
Consolidated financial statements | 7 |
Consolidated statement of financial position as at 30 June 2024 (unaudited) | 7 |
Consolidated income statement for the period from 1 January to 30 June (unaudited) | 9 |
Consolidated statement of other comprehensive income for the period from 1 January to 30 June | |
(unaudited) | 10 |
Consolidated statement of cash flows for the period from 1 January to 30 June (unaudited) | 11 |
Consolidated statement of changes in equity for the period from 1 January to 30 June (unaudited). 12 | |
Notes to the International Financial Reporting Standards (IFRS) consolidated financial statements as | |
at 30 June 2024 (unaudited) | 14 |
Note 1. Overview and accounting policies | 14 |
Note 2. Subsidiaries and affiliates | 15 |
Note 3. Reclassification | 16 |
Note 4. Property, plant and equipment | 17 |
Note 5. Biological assets | 18 |
Note 6. Leases | 19 |
Note 7. Depreciation and impairment expense | 20 |
Note 8. Investments in associates | 20 |
Note 9. Inventories | 22 |
Note 10. Other receivables | 23 |
Note 11. Share capital | 23 |
Note 12. Financial debts | 23 |
Note 13. Trade and other payables | 26 |
Note 14. Financial Instruments | 27 |
Note 15. Other financial income | 29 |
Note 16. Financial expenses | 29 |
Note 17. Dividends | 29 |
Note 18. Information on related party | 30 |
Note 19. Off balance sheet commitments | 32 |
Note 20. Segmental information | 32 |
Note 21. Profit before interest, taxes, depreciation and amortisation (EBITDAG) | 36 |
Note 22. Assets classified as held for sale | 36 |
Note 23. Events after the closing date | 37 |
Glossary | 38 |
Socfinaf - Interim financial report 30/06/2024 - p. 2
SOCFINAF S.A.
Board of Directors
Mr. Hubert Fabri | Chairman |
Mr. Vincent Bolloré | Director |
Bolloré Participations SE represented by Mr. Cyrille Bolloré | Director |
Mr. Gbenga Oyebode | Director |
Mr. François Fabri | Managing Director |
Mr. Philippe Fabri | Director |
Mr. Frédéric Lemaire | Director |
Mr. George Quarteng-Mensah | Director |
Chief Financial Officer
Mr. Daniel Haas
Independent statutory auditor
ERNST & YOUNG S.A. "EY"
Registered office
4, avenue Guillaume L-1650 Luxembourg
Telephone: | (+352) | 44 28 77 |
Telefax: | (+352) | 44 28 77 50 |
E-mail: | info@socfin.com | |
Internet: | www.socfin.com |
Socfinaf - Interim financial report 30/06/2024 - p. 3
Statement of compliance
Mr. Philippe Fabri, Director and Mr. Daniel Haas, Chief Financial Officer, indicate that, to the best of their knowledge,
- the interim consolidated financial statements prepared for the period ended as at 30 June 2024, in accordance with the international accounting standards adopted by the European Union, provide a true and fair view of the assets and liabilities, the financial position and the profits or losses attributable to Socfinaf and all of the entities included in consolidation; and
- the interim management report fairly presents the evolution and results of the Company, the financial position of the Group and all the entities included in the consolidation and a description of the main risks and uncertainties they face.
Socfinaf - Interim financial report 30/06/2024 - p. 4
Management report on the unaudited interim consolidated financial statements as at 30 June 2024
The Board of Directors meeting on 25 September 2024 reviewed the interim consolidated financial statements as at 30 June 2024.
These interim consolidated financial statements have not been audited, nor have they been subject to a limited review by the independent statutory auditor.
Activities
The Company holds interests in companies that operate directly or indirectly in Africa, in the production of rubber and palm oil.
Portfolio
There were no changes in the portfolio during the first half of 2024.
Consolidated income
As at 30 June 2024, the consolidated result attributable to the Group is EUR 27.0 million compared to EUR 31.4 million as at 30 June 2023. This results in a net profit per share of EUR 1.51 compared to EUR 1.76 as at 30 June 2023.
Consolidated revenues for the first half of 2024 amount to EUR 313.0 million compared to EUR 325.3 million in the previous period (EUR -12.3 million). This decrease in turnover is mainly due of the exchange rate effect between the sales currencies (EUR -93.3 million), mainly compensated by the increase in quantities sold (EUR +35.2 million) and to in prices (EUR +45.5 million).
Operating profit amounts to EUR 80.9 million compared to EUR 103.2 million as at 30 June 2023.
EBITDAG amounts to EUR 104.6 million versus EUR 137.1 million during the first half of 2023.
Financial expenses amount to EUR 20.9 million as at 30 June 2024 compared to EUR 25.4 million as at 30 June 2023. This change is mainly due to foreign exchange losses for EUR 14.8 million (compared to EUR 17.3 million during the first half of 2023).
Other financial income amount to EUR 13.0 million (EUR 6.1 million as at 30 June 2023). They are mainly due to foreign exchange gains and to the impact of hyperinflationG in Ghana (revaluation of non-monetary assets).
The income tax expense amounts to EUR 24.8 million compared to EUR 35.1 million during the previous period, due to the decrease in the net profit before tax.
The deferred tax income amount to EUR -2.4 million during the first half of 2024, compared to a deferred tax income of EUR 0.2 million during the previous period.
Consolidated statement of financial position
As at 30 June 2024, Socfinaf's total balance sheet amounts to EUR 802.2 million which represent an increase of EUR 5.2 million compared to the position as at 31 December 2023.
Socfinaf's assets consist of:
- non-currentassets amounting to EUR 573.2 million compared to EUR 600.1 million as at 31 December 2023, a decrease of EUR 26.9 million mainly linked to the foreign exchange difference on biological assets and property, plant and equipment (impact of EUR 23.4 million);
- current assets amounting to EUR 223.5 million compared to EUR 190.5 million as at 31 December 2023, an increase of EUR 33.0 million mostly explained by an increase in cash and cash equivalents for EUR 30.1 million, in inventories for EUR 7.5 million and by a decrease in other receivables for EUR 9.6 million.
- terms are explained part "Glossary" at the end of the interim report
Socfinaf - Interim financial report 30/06/2024 - p. 5
Shareholders' equity attributable to the Group amount to EUR 385.7 million compared to EUR 363.9 million as at 31 December 2023. The decrease in shareholders' equity of EUR 21.8 million is due to the result for the period (EUR 27.0 million) and to the change in the translation reserves (EUR -5.1 million).
Based on the consolidated shareholders' equity, the net value per shareG is EUR 21.63 as at 30 June 2024 compared to EUR 20.40 as at 31 December 2023.
As at 28 June 2024, Socfinaf's share price is EUR 11.20.
Current and non-current liabilities increase to EUR 318.8 million compared to EUR 332.8 million six months earlier.
Financial debt decrease to EUR 137.6 million from EUR 166.9 million as at 31 December 2023. This mainly consist of loans to Socfinaf from Socfin for EUR 70.0 million and advances from shareholders amounting to EUR 40.0 million, as well as the non current and current portion of bank loans for an amount of EUR 18.1 million.
Current tax liabilities increased to EUR 30.8 million compared to EUR 28.7 million in 2023.
Consolidated cash flows
As at 30 June 2024, net cash and cash equivalents amount to EUR 68.4 million, an increase of EUR 32.1 million over the first half of the year (compared to an increase of EUR 26.9 million during the first half 2023).
Cash flows from operating activities amount to EUR 102.6 million as at 30 June 2024 compared to EUR 126.1 million as at 30 June 2023. The net cash flow from operating activities is EUR 94.4 million at closing date compared to EUR 109.5 million one year earlier.
Cash flows from investing activities mobilised EUR 17.8 million compared to EUR 23.9 million in the first half of 2023, which was mainly for the acquisition of property, plant and equipment.
Cash flows from financing activities amount to EUR 41.2 million during the first half of 2024 (compared to EUR 46.2 million in the first half of 2023), of which EUR 6.6 million was for the distribution of dividends and EUR 24.7 million for the net reduction of the debt.
Outlook 2024
The results will depend, to a large extent, on factors which are beyond the control of the management of the Group, namely the political and economic conditions in the countries where the subsidiaries are established, the changes in price of rubber and palm oil, and the exchange of local currencies and 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.
Since 2023, the Central Bank of Nigeria (CBN) introduced several foreign exchange reforms to enhance the supply of foreign exchange and reduce restrictions on demand. Following these reforms, the rate of the Nigerian naira (NGN) towards hard currencies strongly decreased in June 2023 and January 2024. The impacts of these variations are reflected in the financial statements as at 30 June 2024. The impact of the Group's Nigerian operations on the consolidated result is disclosed in Note 20 (Segmental information) of the financial statements. Management closely monitors developments in the Nigerian foreign exchange markets and is keen to present a fair view of the financial statements.
Distribution of an interim dividend
Considering the level of indebtedness as at 30 June 2024, the Board of Directors does not plan to distribute any interim dividend.
Socfinaf - Interim financial report 30/06/2024 - p. 6
Consolidated financial statements
Consolidated statement of financial position as at 30 June 2024 (unaudited)
EUR | Note | 30/06/2024 | 31/12/2023 |
ASSETS | |||
Non-Current Assets | |||
Right-of-use assets | 6 | 30,615,547 | 29,232,550 |
Intangible assets | 814,732 | 991,732 | |
Property, plant and equipment | 4 | 217,529,909 | 232,787,778 |
Non-current biological assets | 5 | 289,215,347 | 299,988,603 |
Investments in associates | 8 | 22,693,578 | 24,499,660 |
Financial assets at fair value through other comprehensive income | 4,800,038 | 4,800,038 | |
Long-term advances | 1,386,586 | 2,015,903 | |
Deferred tax assets | 3,096,169 | 2,735,633 | |
Other non-current assets | 3,086,833 | 3,089,715 | |
573,238,739 | 600,141,612 | ||
Current Assets | |||
Inventories | 9 | 96,273,154 | 88,736,703 |
Current biological assets | 2,107,834 | 2,129,780 | |
Trade receivables | 31,021,528 | 27,235,836 | |
Other receivables | 10 | 13,580,435 | 23,131,220 |
Current tax assets | 10,661,094 | 9,549,095 | |
Cash and cash equivalents | 12 | 69,847,201 | 39,741,654 |
223,491,246 | 190,524,288 | ||
Assets classified as held for sale | 22 | 5,458,941 | 6,313,418 |
TOTAL ASSETS | 802,188,926 | 796,979,318 |
The accompanying notes form an integral part of the consolidated financial statements.
Socfinaf - Interim financial report 30/06/2024 - p. 7
EUR | Note | 30/06/2024 | 31/12/2023 |
EQUITY AND LIABILITIES | |||
Equity attributable to the owners of the Parent | |||
Share capital | 11 | 35,673,300 | 35,673,300 |
Share premium | 87,453,866 | 87,453,866 | |
Legal reserve | 3,567,330 | 3,567,330 | |
Consolidated reserves | 358,807,543 | 330,567,274 | |
Translation reserves | -126,719,563 | -121,624,614 | |
Profit / (loss) for the period | 26,967,064 | 28,248,339 | |
385,749,540 | 363,885,495 | ||
Non-controlling interests | 96,994,687 | 100,045,115 | |
Total Equity | 482,744,227 | 463,930,610 | |
Non-Current Liabilities | |||
Deferred tax liabilities | 21,577,002 | 24,585,197 | |
Employee benefits obligations | 12,325,648 | 12,501,274 | |
Long-term debt, net of current portion | 12 | 85,062,627 | 102,778,317 |
Long-term lease liabilities | 6 | 26,530,673 | 24,950,880 |
Other payables | 13 | 1,325,417 | 1,332,110 |
146,821,367 | 166,147,778 | ||
Current Liabilities | |||
Short-term debt and current portion of long-term debt | 12 | 52,529,095 | 64,103,627 |
Short-term lease liabilities | 6 | 2,802,642 | 2,778,042 |
Trade payables | 13 | 53,406,797 | 46,397,043 |
Current tax liabilities | 30,820,845 | 28,701,137 | |
Provisions | 562,362 | 597,934 | |
Other payables | 13 | 31,850,290 | 24,038,868 |
171,972,031 | 166,616,651 | ||
Liabilities associated with assets classified as held for sale | 22 | 651,301 | 284,279 |
TOTAL EQUITY AND LIABILITIES | 802,188,926 | 796,979,318 | |
The accompanying notes form an integral part of the consolidated financial statements.
Socfinaf - Interim financial report 30/06/2024 - p. 8
Consolidated income statement for the period from 1 January to 30 June (unaudited)
EUR | Note | 2024 | 2023 |
(6 months) | (6 months) | ||
Restated | |||
Revenue | 20 | 313,026,467 | 325,326,824 |
Change in inventories of finished products and work in progress | 21,245,684 | 21,899,921 | |
Other operational income | 2,570,909 | 10,117,109 | |
Raw materialsG and consumables used | 20 | -113,852,233 | -103,888,882 |
Other expenses | 20 | -67,463,796 | -77,936,101 |
Staff costs | -39,287,025 | -35,789,165 | |
Depreciation and impairment expense | 7 | -27,710,909 | -29,977,691 |
Other operating expenses | 20 | -7,579,584 | -6,531,826 |
Operating profit / (loss) | 80,949,513 | 103,220,189 | |
Other financial income | 15 | 12,967,909 | 6,067,229 |
Gain on disposals | 804 | 74,292 | |
Loss on disposals | -1,174,719 | -336,384 | |
Financial expenses | 16 | -20,854,843 | -25,414,154 |
Profit / (loss) before taxes | 71,888,664 | 83,611,172 | |
Income tax expense | -24,832,400 | -35,051,913 | |
Deferred tax (expense) / income | -2,393,818 | 175,058 | |
Share of the Group in the result from associates | 8 | -1,066,512 | 3,903,151 |
Profit / (loss) for the period | 43,595,934 | 52,637,468 | |
Profit / (loss) attributable to non-controlling interests | 16,628,870 | 21,282,322 | |
Profit / (loss) attributable to the owners of the Parent | 26,967,064 | 31,355,145 | |
Basic earnings per share undiluted | 1.51 | 1.76 | |
Number of Socfinaf shares | 17,836,650 | 17,836,650 | |
Basic earnings per share | 1.51 | 1.76 | |
Diluted earnings per share | 1.51 | 1.76 | |
The accompanying notes form an integral part of the consolidated financial statements.
Socfinaf - Interim financial report 30/06/2024 - p. 9
Consolidated statement of other comprehensive | income | for the period from | ||
1 January to 30 June (unaudited) | ||||
EUR | Note | 2024 | 2023 | |
(6 months) | (6 months) | |||
Profit / (loss) for the period | 43,595,934 | 52,637,468 | ||
Other comprehensive income | ||||
Actuarial gains / (losses) | -296 | 0 | ||
Deferred tax on actuarial losses and gains | 535 | 0 | ||
Subtotal of items that cannot be reclassified to profit or loss | 239 | 0 | ||
Gains / (losses) on exchange differences on translation of subsidiaries (*) | -10,338,598 | -59,594,956 | ||
Share of other comprehensive income related to associates | 0 | 0 | ||
Subtotal of items eligible for reclassification to profit or loss | -10,338,598 | -59,594,956 | ||
Total other comprehensive income | -10,338,359 | -59,594,956 | ||
Total comprehensive income | 33,257,575 | -6,957,488 | ||
Comprehensive income attributable to non-controlling interests | 11,385,105 | 5,532,070 | ||
Comprehensive income attributable to the owners of the Parent | 21,872,470 | -12,489,558 | ||
- Mainly Okomu (EUR -4.8 million) and PSG (EUR -5.4 million) in 2024, vs mainly Okomu (EUR -42.1 million) and PSG (EUR -9.4 million) in 2023.
The accompanying notes form an integral part of the consolidated financial statements.
Socfinaf - Interim financial report 30/06/2024 - p. 10
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