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Profits at Dekel Agri-Vision have fallen despite the company benefitting from record palm oil prices as a poor harvest hit production at the agribusiness group.
The London-listed West African group reported a 18.4% drop in revenues for its palm oil operation to €30.5m in 2022 after an “unprecedently” low fresh fruit bunch harvest and “atypically” weak high season.
However, a surge in crude palm oil pricing to more than €1,000 per tonne and palm kernel oil pricing to €1,381 per tonne - both at record levels - helped the business offset the weak harvest.
EBITDA for the year came in at €4.6m, compared with €5.2m in 2021, while net profit remained flat at €1m.
Dekel also kicked off its first year of cashew production, with the operation generating a loss of €2.3m on revenues of €700k.
It meant group net losses for the year widened from €400k in 2021 to €2.3m.
Executive director Lincoln Moore said achieving a “strong EBITDA” from the palm oil operation despite operating in the lowest high season production period the group had experienced was “a credible outcome”.
“With CPO prices remaining higher than historical averages and a much stronger H1 2023 high season, the palm oil operation is well positioned to deliver a strong H1 2023 financial performance,” he added.
“Following a lengthy commissioning process during 2022, the operating and financial performance of the cashew operation is now poised to materially improve in 2023.
“Given reasons to be optimistic about both the palm oil operation and the cashew operation, we are excited about our prospects to deliver a strong financial performance in 2023.”
Morning update
The FTSE 100 is up 0.3% to 7,486.79pts this morning.
It’s another quiet day for fmcg on the markets.
Risers so far include Just Eat Takeaway, up 1.7% to 1,179p, and THG, up 1.7% to 78p.
Hotel Chocolat is down 1.4% to 120.3p, AG Barr is 1.2% lower at 446p and Haleon is down 1.1% to 315.9p.
Yesterday in the City
The FTSE 100 got its head 0.1% above water by the end of the day to 7,461.46pts.
Shares in PZ Cussons tumbled 5.5% to 165.5p after the consumer group warned of a potential revenues and profits hit from a devaluation of Nigeria’s currency.
Other fallers included Nichols, down 1% to 1,025p, and Fever-Tree, down 1.6% to 1,200.2p.
Winners yesterday included Just Eat Takeaway, up 6.9% to 1,159.3p, Ocado, up 6% to 562.5p, and Greggs, up 2.6% to 2,581.1p.
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