2023
ANNUAL REPORT
Socfinaf S.A.
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Socfinaf S.A.
Table of contents
Group profile 4
1. Overview of the Group 4
2. History 4
3. Group structure 6
4. Information on Socfinaf’s holdings 7
International market for rubber and palm oil 21
1. Rubber 21
2. Palm oil 24
Environment and social responsibility 27
Key figures 28
1. Activity indicators 28
2. Key figures in the consolidated income statement and the cash flow statement 29
3. Key figures in the consolidated statement of financial position 29
Stock market data 30
Financial highlights of the year 30
Corporate governance statement 31
1. Introduction 31
2. Corporate governance chart 31
3. Board of Directors 31
4. Committees of the Board of Directors 34
4.1. Audit Committee 34
4.2. Appointment and Remuneration Committee 35
5. Remunerations 35
6. Shareholding status 35
7. Financial calendar 36
8. External audit 36
9. Corporate, social and environmental responsibility 36
10. Other information 36
Statement of compliance 37
Consolidated management report 38
Auditor’s report on the consolidated financial statements 42
Consolidated financial statements 47
1. Consolidated statement of financial position 47
2. Consolidated income statement 49
3. Consolidated statement of comprehensive income 50
4. Consolidated statement of cash flows 51
5. Consolidated statement of changes in equity 52
6. Notes to the consolidated financial statements 53
Note 1. Overview and accounting policies 53
Note 2. Subsidiaries and associates 65
Note 3. Restatement and reclassification 67
Note 4. Leases 69
Note 5. Intangible assets 71
Note 6. Property, plant and equipment 72
Note 7. Biological assets 73
Note 8. Depreciation and impairment 74
Note 9. Impairment of assets 74
Note 10. Non-wholly owned subsidiaries in which non-controlling interests are significant 76
Note 11. Investments in associates 78
Note 12. Financial assets at fair value through other comprehensive income 81
Note 13. Deferred taxes 82
Note 14. Current tax assets and liabilities 83
Note 15. Income tax expense 84
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Note 16. Inventories 85
Note 17. Trade receivables (current assets) 86
Note 18. Other receivables (current assets) 87
Note 19. Cash and cash equivalents 87
Note 20. Share capital and share premium 88
Note 21. Legal reserves 88
Note 22. Pension obligations 89
Note 23. Financial debts 91
Note 24. Trade and other payables 95
Note 25. Financial instruments 96
Note 26. Staff costs and average number of staff 98
Note 27. Other financial income 98
Note 28. Financial expenses 98
Note 29. Net earnings per share 99
Note 30. Dividends and Directors’ fees 99
Note 31. Information on related party 100
Note 32. Off balance sheet commitments 102
Note 33. Segment information 103
Note 34. Risk management 110
Note 35. Contingent liabilities 113
Note 36. Political and economic environment 114
Note 37. Events after the closing date 114
Note 38. Assets classified as held for sale 114
Note 39. Auditor’s fees 115
Company’s management report 116
Audit report on the Company’s financial statements 123
Company financial statements 127
1. Balance sheet as at 31 December 2023 127
2. Income statement for the year ended 31 December 2023 129
3. Notes to the parent company financial statements for the 2023 financial year 130
Note 1. Overview 130
Note 2. Accounting principles, rules and methods 130
Note 3. Financial fixed assets 133
Note 4. Equity 136
Note 5. Amounts owed to affiliated undertakings 137
Note 6. Amounts owed to undertakings with which the undertaking is linked
by vitue of participating interests: 137
Note 7. Income from participating interests 137
Note 8. Income from other investments and loans forming part of the fixed assets 137
Note 9. Taxation 138
Note 10. Remuneration of the Board of Directors 138
Note 11. Political and economic environment 138
Note 12. Off-balance sheet commitments 138
Note 13. Significant events after the year end 138
Glossary 139
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Socfinaf S.A.
Portrait du GroupeGroup profile
1. Overview of the Group
Socfinaf is a Luxembourgish company whose registered
address is 4, Avenue Guillaume, L-1650, Luxembourg.
It was incorporated on 22 October 1961 and is listed
on the Stock Exchange of Luxembourg.
Socfinaf’s principal activity is to manage a portfolio
of shares that mainly focus on the operation of more
than 137,000 hectares of tropical palm oil and rubber
plantations in Africa. As of 2023, Socfinaf employs
23,940 people and has achieved a consolidated
turnover of EUR 563 million over that same year.
2. History
• 22/10/1961: Incorporation of Compagnie Internationale de Cultures (Intercultures) as a Luxembourgish
holding company.
• 31/12/1961: Intercultures invests in two Congolese plantations named “La Compagnie Congolaise de l’Hévéa”
and “Cultures Equatoriales”.
• 18/04/1966: The shares of Intercultures have been listed on the Stock Exchange of Luxembourg.
• 31/12/1974: Nationalisation measures of industrial enterprises by the State of Zaire.
• 31/12/1976: Progress of negotiations with Zaire - exit of Zairian holdings from the portfolio and accounting
for Zaire claim.
• 19/05/1995: Increase of the share capital of Intercultures in order to relaunch the Company’s activity in the
field of tropical plantations.
• 30/06/1995: Acquisition of 65% of Société des Caoutchoucs du Grand Bereby “SOGB” in Côte d’Ivoire via
Bereby Finances “Befin”, a Côte d’Ivoire holding company.
• 30/06/1997: Acquision of 5% of Palmci, a Côte d’Ivoire company producing palm oils.
• 30/06/1998: Increase of share capital and investment in Kenya in 70.8% of Red
Lands Roses, producer of roses and Socfinaf Company, coffee producer.
In addition, Intercultures acquired through its Luxembourg subsidiary (Indufina Luxembourg) 54%
of an oil palm plantation in Nigeria, Okomu Oil Palm Company.
• 31/03/1999: Intercultures continues the expansion of its investments in Africa and more specifically in Liberia:
acquisition of 70% of Weala Rubber Company, owner of a rubber factory and 75% of Liberian
Agricultural Company “LAC” which has a rubber concession
G
(terms having a
G
are explained part
“Glossary” at the end of the annual report).
• 31/03/2000: Acquisition of 89.64% of Société des Palmeraies de la Ferme Suisse “SPFS”, a Cameroon company
active in the production, processing and refining of palm oil.
• 31/12/2000: Through a Cameroon holding Palmcam, Intercultures continues its investments in Cameroon in
Socapalm, a company active in the production and processing of palm oil.
• 31/12/2001: Further increase in share capital which allowed Intercultures to increase its stake in Okomu Oil
Palm Company and in Befin (parent company of SOGB).
• 31/12/2006: Restructuring of Socfinal Group’s holdings, including the distribution of Intercultures shares by
Socfinasia (spin-off) and repositioning of the Group’s operating companies.
• 31/12/2007: Intercultures acquired 99.8% of Brabanta, a company developing a palm oil plantation in Congo
(DRC). On the other hand, Intercultures sold its holdings Weala Rubber Company (Liberia) and
Palmci (Côte d’Ivoire).
• 31/12/2008: Constitution of Sud Comoë Caoutchouc “SCC” (Côte d’Ivoire) via the Ivorian holding Befin.
Intercultures sold 60% of Red Lands Roses (Kenya).
• 31/12/2009: Capital increase in Brabanta (DRC).
Increased participation in Salala Rubber Corporation “SRC” (Liberia).
• 17/03/2010: Sale of Socfinaf Company (Kenya).
• 10/01/2011: Extraordinary General Meeting which ratified the abandon of the holding 29 status and change
of the designation to Socfinaf.
• 01/07/2011: Share split by 10.
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• 06/10/2011: Acquisition of 32.9% of Palmcam’s shares which is entirely owned by Socfinaf.
• 31/12/2012: Acquisition of 3.4% of Okomu Oil Palm Company’s shares.
Incorporation of Plantations Socfinaf Ghana “PSG”.
• 23/10/2013: Acquisition of 100% of STP Invest’s shares, a Belgian company which owns 88% of Agripalma,
benefitting from a grant of 5,000 hectares concession
G
on the island of São Tomé.
• 31/12/2014: Capital increase with the issue of 1,474,200 new shares subscribed by Socfin in exchange for
100% of the shares of Société Anonyme Forestière et Agricole “SAFA”. It owns 68.93% of Safacam
(Cameroon).
• 01/01/2015: Beginning of Sogescol Cameroon and Camseeds, which were formed in 2014 by Sogescol FR and
Socfin Research.
• 05/10/2015: Acquisition of shares in Socapalm to increase the percentage holding to 4.57%.
• 04/11/2015: Constitution of Sodimex FR and Induservices FR.
• 01/02/2016: Liquidation of Palmcam (Cameroon).
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Socfinaf S.A.
3. Group structure
Holding companies
SOCFINDE
Luxembourg
65%
20%
30%
50%
33%
15%
30%
19%
35%
10%
SOCFIN
Luxembourg
10%
SOCFINAF
Luxembourg
50%
100%
50%
50%
50%
50%
50%
STP INVEST
Belgium
100%
100%
100%
66%
100%
100%
88%
BEREBY-FINANCES
Côte d’Ivoire
SAFA
France
93%
100%
100%
69%
87%
70%
100%
67%
73%
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4. Information on Socfinaf’s holdings
Portfolio Number of shares Direct %
Sierra Leone
SAC
119,970,000 93.00%
Liberia
LAC
25,000 100.00%
SRC
795 100%
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%
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
675 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 the current year results.
Corporate data refers to consolidated data.
The balance sheet figures are presented in the
functional currency of the respective entities.
Group profile
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Socfinaf S.A.
SOCFIN AGRICULTURAL COMPANY “SAC”
Share capital: USD 30,000,000
SAC is active in Sierra Leone in the production of palm oil.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Palm 12,349 0 12,349
Concessions
G
: 18,473 ha
Permanent staff as at 31 December 2023: 2,375
Production and turnover
As at 31 December 2023 2022
Production (tons)
Palm oil 50,249 51,919
Turnover (EUR 000) 44,341 58,554
Result (EUR 000) 11,126 16,516
Average sale price (EUR / kg)
Palm oil 0.88 1.13
Average rate EUR / USD 1.08 1.05
Closing rate EUR / USD 1.10 1.07
Key figures (USD 000)
As at 31 December 2023 2022
Fixed assets
124,216 131,376
Current assets
13,813 7,315
Equity (*)
45,729 33,684
Debts, provisions and third parties (*)
92,299 105,007
Profit / (loss) for the period
12,046 17,307
Socfinaf’s holding (%)
93.00 93.00
(*) Before profit allocation.
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LIBERIAN AGRICULTURAL COMPANY “LAC”
Share capital: USD 31,105,561
LAC is active in Liberia in the field of rubber cultivation and industrial rubber processing.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Rubber 10,711 1,558 12,269
Concessions
G
: 121,407 ha
Permanent staff as at 31 December 2023: 2,036
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 27,694 27,401
Turnover (EUR 000) 34,964 40,757
Result (EUR 000) -16,538 3,509
Average sale price (EUR / kg)
Rubber 1.26 1.49
Average rate EUR / USD 1.08 1.05
Closing rate EUR / USD 1.10 1.07
Key figures (USD 000)
As at 31 December 2023 2022
Fixed assets 64,814 83,995
Current assets 24,252 23,589
Equity (*) 42,913 60,817
Debts, provisions and third parties (*) 46,153 46,767
Profit / (loss) for the period -17,904 3,677
Socfinaf’s holding (%) 100.00 100.00
(*) Before profit allocation.
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Socfinaf S.A.
SALALA RUBBER CORPORATION “SRC”
Share capital: USD 49,656,328
SRC is active in Liberia in the rubber sector.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Rubber plantation 3,335 1,110 4,445
Concessions
G
: 8,000 ha
Permanent staff as at 31 December 2023: 229
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 5,314 4,563
Turnover (EUR 000) 4,018 4,469
Result (EUR 000) -2,638 -2,229
Average sale price (EUR / kg)
Rubber 0.76 0.98
Average rate EUR / USD 1.08 1.05
Closing rate EUR / USD 1.10 1.07
Key figures (USD 000)
As at 31 December 2023 2022
Fixed assets 44,025 46,130
Current assets 2,554 2,686
Equity -2,331 526
Debts, provisions and third parties 48,910 48,291
Profit / (loss) for the period -2,856 -2,335
Socfinaf’s direct and indirect holding (%) 100.00 100.00
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BEREBY-FINANCES “BEFIN”
Share capital: CFA 8,500,000,000
This Côte d’Ivoire holding company holds 73.16% of SOGB and 70.01% of SCC.
SOCIETE DES CAOUTCHOUCS DU GRAND BEREBY “SOGB”
Share capital: CFA 21,601,840,000
SOGB is active in Côte d’Ivoire in the production and processing of palm oil and rubber.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Palm 7,471 20 7,491
Rubber 12,906 2,879 15,785
TOTAL 20,377 2,899 23,276
Concessions
G
: 34,712 ha
Permanent staff at 31 December 2023: 6,281
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 64,309 65,815
Palm oil 34,159 35,301
Turnover (EUR 000) 111,971 143,125
Result (EUR 000) 8,035 23,863
Average selling price (EUR / kg)
Rubber 1.22 1.52
Palm oil 0.91 1.13
Rate EUR / CFA 655.957 655.957
Key figures (CFA million)
As at 31 December 2023 2022
Fixed assets 63,269 64,408
Current assets 25,738 27,065
Equity (*) 60,756 68,879
Debts, provisions and third parties (*) 28,251 22,594
Profit / (loss) for the period 5,270 15,653
Distribution 7,094 8,000
Socfinaf’s indirect holding (%) 63.69 63.69
(*) Before profit allocation.
Group profile
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SUD COMOË CAOUTCHOUC “SCC”
Share capital: CFA 964,160,000
SCC is active in Côte d’Ivoire in the industrial rubber processing sector.
Key data
Permanent staff at 31 December 2023: 408
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 38,559 39,554
Turnover (EUR 000) 48,644 57,479
Result (EUR 000) 4,099 4,858
Average selling price (EUR / kg)
Rubber 1.26 1.45
Rate EUR / CFA 655.957 655.957
Key figures (CFA million)
As at 31 December 2023 2022
Fixed assets 3,727 3,977
Current assets 10,196 11,978
Equity (*) 7,976 7,987
Debts, provisions and third parties (*) 5,947 7,968
Profit / (loss) for the period 2,689 3,187
Distribution 2,000 2,500
Socfinaf’s indirect holding (%) 60.95 60.95
(*) Before profit allocation.
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PLANTATIONS SOCFINAF GHANA “PSG”
Share capital: GHS 150,000,000
PSG is active in Ghana in the production of palm oil and rubber.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Rubber 942 0 942
Palm 6,140 0 6,140
TOTAL 7,082 0 7,082
Concessions
G
: 18,304 ha
Permanent staff as at 31 December 2023: 2,642
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 1,280 814
Palm oil 35,472 25,375
Turnover (EUR 000) 34,514 33,083
Result (EUR 000)
12,795 5,808
Average selling price (EUR / kg)
Rubber 0.89 1.19
Palm oil 0.94 1.26
Average rate EUR / GHS 12.07 8.42
Closing rate EUR / GHS 13.13 9.15
Key figures (GHS 000)
As at 31 December 2023 2022
Fixed assets 477,066 465,946
Current assets 39,895 65,401
Equity (*) 428,495 274,059
Debts, provisions and third parties (*) 88,465 257,288
Profit / (loss) for the period 154,436 48,891
Socfinaf’s holding (%) 100 100
(*) Before profit allocation.
Group profile
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Socfinaf S.A.
OKOMU OIL PALM COMPANY
Share capital: NGN 476,955,000
Okomu is active in Nigeria in the production and processing of palm oil and rubber.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Rubber 6,265 1,070 7,335
Palm 19,045 0 19,045
TOTAL 25,310 1,070 26,380
Concessions
G
: 33,113 ha
Permanent staff at 31 December 2023: 1,862
Production and turnover
As at 31 December 2023 2022
Production (tons)
Rubber 9,907 8,124
Palm oil 69,563 54,091
Turnover (EUR 000) 113,519 133,280
Result (EUR 000) 35,264 38,963
Average selling price (EUR / kg)
Rubber 1.21 1.52
Palm oil 1.46 2.23
Average rate EUR / NGN 662 445
Closing rate EUR / NGN 995 479
Key figures (NGN 000)
As at 31 December 2023 2022
Fixed assets 59,399,143 55,902,697
Current assets 23,325,373 13,717,176
Equity (*) 40,633,430 42,017,150
Debts, provisions and third parties (*) 42,091,087 27,602,722
Profit / (loss) for the period 23,331,914 17,342,677
Distribution 13,292,595 20,032,110
Gross dividend per share (NGN) 13.93 21.00
Socfinaf’s holding (%) 66.38 66.38
(*) Before profit allocation.
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SOCAPALM
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.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Rubber 1,936 0 1,936
Palm 29,458 2,975 32,433
TOTAL 31,394 2,975 34,369
Concessions
G
: 58,063 ha
Permanent staff at 31 December 2023: 2,664
Production and turnover
As at 31 December 2023 2022
Production (tons)
Palm oil 138,783 146,232
Rubber (*) 2,499 1,734
Turnover (EUR 000) 129,003 112,852
Result (EUR 000) 18,194 16,269
Average selling price (EUR / kg)
Palm oil 0.91 0.75
Rubber 0.71 0.82
Rate EUR / CFA 655.957 655.957
Key figures (CFA million)
As at 31
December 2023 2022
Fixed assets 73,401 74,493
Current assets 18,657 20,762
Equity (**) 67,873 66,234
Debts, provisions and third parties (**) 24,185 29,022
Profit / (loss) for the period 11,934 10,672
Distribution 9,630 9,450
Socfinaf’s holding (%) 67.46 67.46
(*) Agricultural production fully sold to SAFACAM.
(**) Before profit allocation.
Group profile
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SOCIETE ANONYME FORESTIERE ET AGRICOLE “SAFA”
Share capital: EUR 4,040,400
This French company owns 68.93% of Safacam.
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.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Palm 5,306 0 5,306
Rubber 3,509 917 4,426
TOTAL 8,815 917 9,732
Concessions
G
and land owned: 17,690 ha
Permanent staff as at 31 December 2023: 2,475
Production and turnover
As at 31 December 2023 2022
Production (tons)
Palm oil 16,096 16,526
Palm kernel oil 9,770 8,531
Rubber 9,004 6,377
Turnover (EUR 000) 35,943 35,406
Result (EUR 000) 934 4,189
Average selling price (EUR / kg)
Palm Products 1.61 1.50
Rubber 1.08 1.66
Rate EUR / CFA 655.957 655.957
Key figures (CFA million)
As at 31 December 2023 2022
Fixed assets 22,602 21,901
Current assets 9,107 8,251
Equity (*) 19,242 21,374
Debts, provisions and third parties (*) 12,467 8,778
Profit / (loss) for the period 613 2,748
Distribution 1,000 2,484
Socfinaf’s indirect holding (%) 69.05 69.05
(*) Before profit allocation.
Group profile
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AGRIPALMA
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
As at 31 December 2023 Mature Immature Total
Palm 1,879 0 1,879
Concessions
G
and land owned: 2,388 ha
Permanent staff as at 31 December 2023: 789
Production and turnover
As at 31 December 2023 2022
Production (tons)
Palm oil 4,870 6,430
Turnover (EUR 000) 5,512 7,782
Result (EUR 000) -2,463 849
Average selling price (EUR / kg)
Palm oil 1.13 1.21
Average rate EUR / STN 24.50 24.50
Closing rate EUR / STN 24.50 24.50
Key figures (STN million)
As at 31 December 2023 2022
Fixed assets 667 691
Current assets 94 103
Equity -16 44
Debts, provisions and third parties 777 750
Profit / (loss) for the period -60 21
Socfinaf’s indirect holding (%) 88.00 88.00
Group profile
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Socfinaf S.A.
BRABANTA
Share capital: CDF 34,243,622,100
Brabanta is a Congolese company (DRC) active in the production of palm oil.
Key data
Area (hectares) Planted area
As at 31 December 2023 Mature Immature Total
Palm 6,072 0 6,072
Concessions
G
: 8,380 ha
Permanent staff as at 31 December 2023: 2,023
Production and turnover
As at 31 December 2023 2022
Production (tons)
Palm oil 13,231 13,769
Turnover (EUR 000) 10,923 16,366
Result (EUR 000) -4,803 -672
Average selling price (EUR / kg)
Palm oil 0.83 1.19
Average rate EUR / CDF 2,514 2,103
Closing rate EUR / CDF 2,961 2,151
Key figures (CDF million)
As at 31 December 2023 2022
Fixed assets 139,957 133,043
Current assets 175,848 115,053
Equity (*) 74,717 69,634
Debts, provisions and third parties (*) 241,088 178,463
Profit / (loss) for the period -12,077 -1,413
Socfinaf’s holding (%) 100.00 100.00
(*) Before profit allocation.
Group profile
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SOGESCOL FR
Share capital: CHF 5,300,000
Sogescol FR is a Swiss company that sells rubber and palm oil.
The financial year ended on 31 December 2023 with a profit of USD 6,705,434. The Board of Directors will
propose to the General Meeting of Shareholders a profit distribution of USD 8,000,000.
2023 2022
Average rate EUR / USD
1.08 1.05
Closing rate EUR / USD
1.10 1.07
Key figures (USD 000)
As at 31 December 2023 2022
Fixed assets
4,031 773
Current assets
49,001 50,991
Equity (*)
16,660 17,955
Debts, provision and third parties (*)
36,372 33,809
Profit / (loss) for the period
6,705 8,865
Distribution
8,000 8,000
Gross dividend per share (USD)
1,509 1,509
Socfinaf’s holding (%)
50.00 50.00
(*) Before profit allocation.
Group profile
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Socfinaf S.A.
SOCFINCO FR
Share capital: CHF 1,300,000
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 that ended on 31 December 2023 shows a profit of EUR 6,488,998. The Board of Directors will
propose to the General Meeting of Shareholders a profit distribution of EUR 6,000,000.
Key figures (EUR 000)
As at 31 December 2023 2022
Fixed assets 5,444 4,309
Current assets 19,703 22,133
Equity (*) 14,921 16,432
Debts, provisions and third parties (*) 10,225 10,010
Sales and services 26,709 30,293
Profit / (loss) for the period 6,489 8,834
Distribution 6,000 8,000
Gross dividend per share (EUR) 4,615 6,154
Socfinaf’s holding (%) 50.00 50.00
(*) Before profit allocation.
Socfinaf S.A.
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ANNUAL REPORT 2023
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21
1. Rubber
SGX - NATURAL RUBBER - 5 years +
SGX - NATURAL RUBBER - 1 year +
$ct/Kg
Jan 2023
Feb 2023
Mar 2023
Apr 2023
May 2023
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
100
120
140
160
180
200
220
100
120
140
160
180
200
220
RSS3
TSR20
International market for rubber and palm oil
$ct/Kg
50
100
150
200
250
300
50
100
150
200
250
300
RSS3
TSR20
International market for rubber and palm oil
22
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Socfinaf S.A.
The international market in 2023
The average natural rubber price (TSR20
G
1
st
position
on SGX
G
) for the year 2023 is USD 1,377/T FOB
G
Singapore compared with USD 1,548/T in 2022, a fall
of 11%.
Converted into euros, the average TSR20
G
price in
2023 is EUR 1,273/T, compared with EUR 1,469/T in
2022.
The end of 2022 was marked by the end of the ‘zero-
covid’ policy in China and high stocks of natural rubber
in consumer countries. China, the world’s leading
consumer of natural rubber, saw one of its lowest
rates of economic growth for 40 years in 2022, at 3%.
Hopes of a recovery in Chinese economic activity at
the start of the year enabled natural rubber prices
to reach levels close to USD 1,450/T at the end
of January 2023. Indeed, the lifting of public health
measures was expected to go hand in hand with a
spectacular upturn in the Chinese economy. In reality,
however, the country has not recovered, faced with
a major property crisis, falling exports and sluggish
domestic consumption.
Against this backdrop, and despite the start of the
winter season in producing countries, prices remained
under pressure from February onwards, fluctuating
between USD 1,300 and USD 1,400/T against a
backdrop of slowing consumption, the war in Ukraine,
persistent inflationary pressures, restrictive monetary
policies on the part of the main central banks and
turbulence in the banking sector. In mid-August,
natural rubber prices reached their lowest point of
the year at USD 1,270/T.
The fall in demand for natural rubber was particularly
felt in the European and American markets, leading
to an increase in inventories at tyre manufacturers’
plants.
The fall in production in Indonesia and Malaysia, due
in particular to a rubber tree disease, did not have
a positive effect on natural rubber prices, as it was
offset by increased production in other countries
such as Côte d’Ivoire and Cambodia. In 2023, Côte
d’Ivoire recorded its strongest annual production
growth (+26%) for five years, consolidating its status
as the world’s third producer with 1.68 million tons
produced.
From the end of August, natural rubber prices
recovered following measures taken by the Chinese
government to stimulate economic growth and
downward revisions to production in Thailand and
Indonesia due to heavy rains hampering harvests.
At the end of December, natural rubber prices broke
through the USD 1,500/T barrier and reached their
highest level of the year at USD 1,561/T on the last
closing day of 2023.
In stark contrast to 2021 and the first half of 2022,
global logistics improved at the end of 2022 and ocean
freight rates fell steadily during 2023 to return to
pre-COVID levels. Freight rates out of Asia have fallen
faster than out of Africa, making Asian rubber more
competitive with African rubber.
However, the tensions that have arisen in the Red
Sea have had an impact on freight rates from Asia
to Europe, which began to rise sharply at the end
of 2023. Shipowners are now having to divert their
vessels to the Cape of Good Hope instead of the Suez
Canal, and are imposing substantial freight surcharges
for cargoes originating in Asia.
According to the latest forecasts published by
GlobalData in February 2024, world natural rubber
production in 2023 will be 14.15 million tons, down
1.1% on 2022, while world consumption will be
14.03 million tons, up 2.3% on 2022, resulting in
a surplus of 118,000 tons in 2023 compared with
596,000 tons in 2022.
International market for rubber and palm oil
Socfinaf S.A.
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ANNUAL REPORT 2023
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23
Outlook 2024
Natural rubber prices remained above USD 1,500/T at
the start of the year, reaching USD 1,603/T at the end
of February, their highest level since July 2022.
Natural rubber prices should be supported in 2024 by
tight supply and a recovery in demand. Poor weather
conditions which disrupted production in the southern
provinces of Thailand in late 2023 and early 2024 and
the possibility of an early winter in the main producing
countries linked to the El Niño phenomenon could
amplify the natural rubber deficit forecast for 2024.
The end of interest rate rises and, depending on
inflation trends, a probable easing of monetary
policy by central banks in the USA and Europe could
encourage an economic recovery with a positive
impact in terms of demand for natural rubber.
Price trends will also depend on the effectiveness
of the measures taken by the Chinese government
to stimulate the economic recovery, which remains
affected by an unprecedented property crisis and
a global economic slowdown as a result of the fight
against inflation.
The entry into force at the end of 2024 of the European
“EUDR” regulation aimed at banning certain raw
materials
G
derived from deforestation should change
the structure of the market. The strong demand
from tyre manufacturers for traceable natural rubber
destined for mainland Europe should enable producers
who can prove that their supply chain is legal and
does not come from deforested areas to obtain a
substantial premium over the reference market.
Rubber producers who do not comply with the EUDR
will be forced to sell their production outside the
single market at a lower premium.
According to the IRSG’s
G
latest forecasts, published
in August 2023, the IRSG
G
estimates world production in
2024 at 14.90 million tons (up 2.2%) and world demand
of around 14.95 million tons (up 2.7%), resulting in
a rubber deficit of 48,000 tons. Consumption and
production are therefore almost in balance.
The TSR20
G
1
st
FOB
G
Singapore position on SGX
G
was
quoted at USD 1,603/T on 23 February 2024.
International market for rubber and palm oil
24
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ANNUAL REPORT 2023
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Socfinaf S.A.
2. Palm oil
CIF ROTTERDAM - PALM OILS - 5 years +
CIF ROTTERDAM - PALM OILS - 1 year +
$/Mton
Jan 2023
Feb 2023
Mar 2023
Apr 2023
May 2023
Jun 2023
Jul 2023
Aug 2023
Sep 2023
Oct 2023
Nov 2023
Dec 2023
Jan 2024
Feb 2024
500
600
700
800
900
1,000
1,100
1,200
1,300
500
600
700
800
900
1,000
1,100
1,200
1,300
CPO
CPKO
$/Mton
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
CPO
CPKO
International market for rubber and palm oil
Socfinaf S.A.
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ANNUAL REPORT 2023
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25
World palm oil production in million tons
(source: Oil World)
2024 (*) 2023 2022 2021 2020 2019 2018 2015 2005 1995
Indonesia 48.2 48.4 46.7 44.7 42.8 44.2 41.6 33.4 14.1 4.2
Malaysia 18.4 18.6 18.5 18.1 19.1 19.9 19.5 20.0 15.0 7.8
Other 14.8 14.4 14.0 13.1 12.2 12.4 11.9 9.1 4.8 3.2
TOTAL
81.4 81.6 79.2 75.9 74.1 76.5 73.0 62.5 33.9 15.2
(*) Estimated (December 2023).
Production of the main oils in million tons
(source: Oil World)
Oct 2023 to Sep 2024 (*) 2023 2022 2021 2020 2019 2018 2015 2005 1995
Palm 81.4 81.6 79.2 75.9 74.1 76.5 73.0 62.5 33.9 15.2
Soya 61.4 59.7 60.1 60.1 58.6 56.8 56.8 48.8 33.6 20.2
Rapeseed 30.9 30.6 25.7 26.9 25.3 24.9 25.6 26.3 16.2 10.8
Sunflower 22.3 22.3 19.7 18.9 21.3 20.7 19.0 15.1 9.7 8.7
Palm kernel 8.5 8.4 8.2 8.0 7.8 8.1 7.7 6.8 4.0 2.0
Cotton 4.5 4.4 4.4 4.4 4.6 4.6 4.7 4.7 5.0 3.9
Peanut 4.4 4.4 4.7 4.4 4.2 3.7 4.0 3.7 4.5 4.3
Copra 3.0 3.1 3.0 2.8 2.6 2.9 2.9 2.9 3.2 3.3
TOTAL
216.6 214.5 205.1 201.4 198.5 198.2 193.7 170.8 110.1 68.4
(*) Estimated (December 2023).
The international market in 2023
The average price for CIF Rotterdam
G
crude palm oil
in 2023 is USD 964/T, compared with USD 1,352/T
in 2022.
Whereas 2022 had been characterised by high price
volatility, 2023 was marked by a degree of stability,
with prices mostly fluctuating between USD 900 and
USD 1,000/T.
In 2022, prices rose spectacularly in the first half of
the year, triggered by a sudden restriction in supply
due to the Russian-Ukrainian conflict and protectionist
measures taken by Indonesia. Then, in the second half
of the year, rising stocks and the massive return of
Indonesian palm oil to the markets created strong
downward pressure on prices. After losing almost
USD 500/T in the space of a few months, the price of
CIF Rotterdam
G
crude palm oil ended 2022 at around
USD 1,000/T.
Over the first few months of 2023, prices stabilised at
around USD 1,000/T, with the market torn between
bullish and bearish news. The supply of vegetable oil
on the markets remained strong, encouraging bearish
sentiment. At the same time, fairly positive export
statistics and difficult weather conditions likely to
affect harvests helped to support prices during this
period.
After several months without much volatility, palm oil
prices finally eroded in May, falling from USD 1,000/T
to USD 850/T CIF Rotterdam
G
, before rebounding
in June following announcements of a likely return of
the El Niño weather phenomenon. In South-East Asia,
El Niño is traditionally synonymous with drought, which
can lead to sharp falls in production, and therefore a
tightening of palm oil supply on the markets.
However, while the occurrence of this climatic
phenomenon has now been confirmed, the forecasts
for a “strong” El Niño have gradually faded. The
impact on palm oil production could be delayed and
less severe than expected.
Oil World forecasts global palm oil production at
around 81.6 million tons in 2023.
International market for rubber and palm oil
26
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Socfinaf S.A.
Demand remains strong, despite the slowdown in the
Chinese economy. India remains the biggest importer,
with almost 10 million tons expected to be imported
by 2023. But the biggest consumer is Indonesia, which
absorbs more than 20 million tons of palm oil a year,
or 40% of its production. The proportion destined for
the biofuel industry (11 million tons) now exceeds
that destined for the food industry (9 million tons).
At the end of 23 December 2023, the CIF Rotterdam
G
CPO
G
was trading at around USD 935/T.
Outlook 2024
After rising sharply in recent years, global palm oil
production is now running out of steam. The two
main palm oil producing countries, Indonesia and
Malaysia (85% of world production), are experiencing
a slowdown in production growth, with fewer areas
available for planting and labour shortages. In addition,
the possible effects of the El Niño phenomenon on
palm plantations could also have an impact on palm
oil production in 2024.
The available supply of palm oil could therefore prove
insufficient to satisfy the growth in world demand.
Demand remains strong, thanks in particular to the
increase in the world’s population and the continuing
rise in demand for vegetable oils in developing
countries.
Given the current global economic slowdown,
however, demand could show signs of weakening,
even if the main importing countries, led by India and
China, do not see their consumption fall significantly.
The biofuels industry’s increasingly ambitious
programmes (B20 in Malaysia, B35 in Indonesia) should
provide some support for palm oil prices. By 2023, it
is estimated that over 20 million tons of palm oil (25%
of global production) will have been used to make
biodiesel.
Some experts also believe that the entry into force of
the European regulation on imported products (EUDR)
could create a two-tier palm oil market. From the end
of 2024, this law will prohibit the arrival on European
soil of raw materials
G
originating from deforestation
zones after 2020. This restrictive legislation could
split the palm oil market in two: on the one hand,
traceable palm oil produced by the largest plantations
capable of complying with European regulations, and
on the other, downgraded oil produced by smaller
players that will be sold outside the European Union.
This “non-labelled” oil would then see its price fall in
relation to “EUDR” palm oil.
Palm oil prices are also likely to be affected by the
trend in soya prices in 2024. Brazil, which accounts
for almost 40% of global soya production, is currently
experiencing severe weather problems (dry weather in
Mato Grosso and heavy rain in Paraná) that are likely
to affect the 2024 harvest and influence the overall
supply of vegetable oils on the markets.
On 23 February 2024, the CIF Rotterdam
G
CPO
G
was
quoted at around USD 960/ton.
Socfinaf S.A.
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27
Along with its specific commitment to transparency,
the Group has built a responsible management policy
around its three pillars of commitment, namely: rural
development, workers and local communities, and
environment. These commitments form the basis of
key initiatives that are aimed at improving long-term
economic performance, social well-being, health,
safety and natural resource management.
An implementation plan for this policy has been
defined and implemented since 2022.
A regularly updated dashboard, as well as a separate
annual report (“Sustainable Development Report”),
details the efforts and actions undertaken by the
Socfin Group in this area.
The responsible management policy, the dashboard
and the annual sustainable development report are
available on the Group’s website.
Environment and social responsibility
28
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Socfinaf S.A.
1. Activity indicators
Area (hectares) Rubber Palm
As at 31 December 2023
Immatures (by year of planting)
2023 606
761
2022 391
755
2021 935
1,480
2020 1,000 0
2019 1,373 0
2018 2,146 0
2017 912 0
2016 167 0
2015 3 0
2014
0 0
Total immatures 7,535 2,996
Young (from 8 to 11 years) 12,425 (from 4 to 7 years) 14,295
Prime (from 12 to 22 years) 18,440 (from 8 to 18 years) 46,024
Old (above 22 years) 8,739 (above 18 years) 27,401
Total in production 39,603
87,720
TOTAL 47,138
90,716
Area (hectares) 2023 2022 2021 2020 2019
Palm 90,716 90,959 91,004 91,207 91,220
Rubber 47,138 47,278 47,940 48,146 48,361
TOTAL 137,854 138,237
138,944 139,353 139,581
Production 2023 2022 2021 2020 2019
Palm oil (tons)
362,424 349,644 355,924 321,348 278,979
Own production
G
319,591 308,544 309,149 285,726 244,551
Third party purchases
G
42,834 41,100 46,775 35,623 34,428
Rubber (tons)
149,472 147,271 151,848 144,456 147,851
Own production
G
68,210 59,027 55,450 48,972 53,749
Third party purchases
G
81,262 88,243 96,397 95,484 94,102
Seeds (thousands) 3,464 4,495 3,362 1,413
Own production
G
3,464 4,495 3,362 1,413
Key figures
Key figures
Socfinaf S.A.
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ANNUAL REPORT 2023
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29
Key figures
Turnover (EUR million) 2023 2022 2021 2020 2019
Palm 370 408 328 241 210
Rubber 187 222 196 157 164
Other agricultural products 2 0 1 1 0
Other 4 7 2 4 3
TOTAL
563 637 527 403 376
Staff 2023 2022 2021 2020 2019
Average workforce
23,940 25,453 24,596 23,291 24,166
2. Key figures in the consolidated income statement and the cash flow
statement
(EUR million)
2023 2022
Restated
2021 2020 2019
Turnover 563 637 527 403 376
Operating income 105 175 143 56 47
Profit / (loss) for the period attributable to the Group 28 73 72 -4 4
Net cash flows from operating activities 147 190 154 91 65
Free cash flows
G
98 136 93 30 9
3. Key figures in the consolidated statement of financial position
(EUR million)
2023 2022
Restated
2021
Restated
2020 2019
Bearer biological assets 300 350 366 364 405
Other non-current assets 300 324 316 290 304
Current assets 191 230 209 171 169
Assets held for sale 6 0 0 0 0
Total equity 464 485 416 334 385
Non-current liabilities 166 220 295 182 197
Current liabilities 167 199 180 310 298
30
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Socfinaf S.A.
(EUR)
2023 2022
Restated
2021
Restated
2020 2019
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 363,885,495 368,561,160 301,530,511 224,895,450 272,328,282
Undiluted net profit per share
1.58 4.10 4.04 -0.22 0.22
Dividend per share 0.00 0.00 0.00 0.00 0.00
Share price
Minimum 10.00 11.30 8.10 7.00 8.20
Maximum 13.40 15.80 12.40 12.60 12.20
Closing 10.80 12.10 12.00 11.10 12.00
Market capitalisation
G
192,635,820 215,823,465 214,039,800 197,986,815 214,039,800
Dividend paid / net profit attributable to the
owners of the Company
N.a. N.a. N.a. N.a. N.a.
Dividends / market capitalisation
G
N.a. N.a. N.a. N.a. N.a.
Market price / undiluted net profit per share 6.82 2.95 2.97 -51.03 55.60
No material events occurred during the financial period.
Financial highlights of the year
Stock market data
Socfinaf S.A.
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31
Corporate governance statement
1. Introduction
Socfinaf pays close attention to the evolution of the ten
principles of corporate governance of the Luxembourg
Stock Exchange. It commits to providing 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.
2. Corporate governance chart
The Board of Directors adopted the Corporate Governance Chart on 21 November 2018. It was updated on
27 March 2024 and is available on the Group’s website.
3. Board of Directors
Composition of the Board of Directors
Name Nationality
Year of
Birth Position
First
nomination
Term of
office
Mr. Hubert Fabri Belgian 1952 Chairman
(a)
AGM 1981 AGM 2028
Mr. Vincent Bolloré French 1952 Director
(a)
AGM 1993 AGM 2029
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 2029
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
Mr. George QUARTENG-MENSAH Ghanaian 1953 Administrator AGM 2023 AGO 2029
(a) Non-Executive Non-Independent Director
(b) Executive Non-Independent Director
(c) Independent Director
The term served by Mr. Cyrille Bolloré as director
expires this year. The renewal of this term will be
proposed at the next Annual General Meeting . This
renewal will hold for six years until the Annual General
Meeting of 2030.
A new administrator Mr. George Quarteng-Mensah was
appointed at the last Annual General Meeting for six
years until 2029.
Corporate governance statement
32
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Socfinaf S.A.
Other mandates held by the Directors in listed companies
Hubert Fabri
Chairman
Positions and offices held in Luxembourgish companies
• Chairman and director of the Board of Directors of Société Financière des Caoutchoucs “Socfin”, Socfinaf
and Socfinasia.
Positions and offices held in foreign companies
• Chairman and Director of the Board of Directors of Palmeraies de Mopoli;
• Vice-Chairman of Société des Caoutchoucs du Grand Bereby “SOGB”;
• Vice-Chairman and member of the Supervisory Board of Compagnie du Cambodge;
• Director of Compagnie de l’Odet, Financière Moncey, Okomu Oil Palm Company, S.A.F.A. Cameroon
“Safacam”, Société Industrielle et Financière de l’Artois and La Forestière Equatoriale;
• Permanent representative of Administration and Finance Corporation “AFICO” at the Board of Société
Camerounaise de Palmeraies “Socapalm”.
Vincent Bolloré
Director
Positions and offices held in Luxembourgish companies
• Director of Société Financière des Caoutchoucs “Socfin”, Socfinaf and Socfinasia.
Positions and offices held in foreign companies
• Chairman and chief Executive officer of Compagnie de l’Odet;
• Vice-Chairman of Société des Caoutchoucs du Grand Bereby “SOGB”;
• Director of Compagnie de l’Odet;
• Permanent representative of Bolloré Participations SE on the Boards of Directors of S.A.F.A. Cameroon
“Safacam”, Société des Caoutchoucs du Grand Bereby “SOGB” and Société Camerounaise de Palmeraies
“Socapalm”.
Bolloré Participations
Director
Positions and offices held in Luxembourgish companies
• Director of Socfinaf.
Positions and offices held in foreign companies
• Member of the Supervisory Board of Compagnie du Cambodge;
• Director of Bolloré SE, Compagnie des Tramways de Rouen, Société des Chemins de Fer et Tramways du Var
et du Gard, Société des Caoutchoucs du Grand Bereby “SOGB”, Société Industrielle et Financière de l’Artois,
Financière Moncey, S.A.F.A. Cameroun “Safacam” and Société Camerounaise de Palmeraies “Socapalm”.
Gbenga Oyebode
Director
Positions and offices held in Luxembourgish companies
• Director of Socfinaf.
Positions and offices held in foreign companies
• Chairman of Okomu Oil Palm Company;
• Director of Nestlé Nigeria and Lafarge Africa.
• Director of Lafarge Africa plc, which is listed on the Nigerian Stock Exchange.
Corporate governance statement
Socfinaf S.A.
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33
François Fabri
Managing Director
Positions and offices held in Luxembourgish companies
• Director of Société Financière des Caoutchoucs “Socfin”, Socfinaf and Socfinasia;
• Executive Director of Socfinaf.
Positions and offices held in foreign companies
• Permanent Representative of Administration and Finance Corporation “AFICO” on the Board of Société des
Caoutchoucs du Grand Bereby “SOGB” and Société Industrielle et Financière de l’Artois;
• Managing Director of Palmeraies de Mopoli;
• Director of S.A.F.A. Cameroon “Safacam” and Société Camerounaise de Palmeraies “Socapalm”.
Philippe Fabri
Director
Positions and offices held in Luxembourgish companies
• Director of Société Financière des Caoutchoucs “Socfin”, Socfinaf and Socfinasia;
• Executive Director of Société Financière des Caoutchoucs “Socfin”.
Positions and offices held in foreign companies
• Member of the Supervisory Board of Palmeraies de Mopoli;
• Permanent representative of Société Anonyme Forestière et Agricole “SAFA” on the board of S.A.F.A.
Cameroon “Safacam”.
Frédéric Lemaire
Director
Positions and offices held in Luxembourgish companies
• Director of Socfinaf.
George Quarteng-Mensah
Administrator
Positions and offices held in Luxembourgish companies
• Director of Socfinaf.
Corporate governance statement
34
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Socfinaf S.A.
Appointments of Directors
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 the passing of 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 following
meeting. The Director appointed to replace another
Director will complete the term of his predecessor.
Role and powers of the Board of Directors
The Board of Directors is the body responsible for
the management of the Company and the control of
day-to-day 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 secure 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.
Activity report of the Board of Directors
Number of meetings
There are at least two meetings for the end of year
and mid-year evaluations. During the 2023 financial
year, the Board of Directors met 2 times.
Topics generally discussed
Periodic accounting situations;
Portfolio movements;
Inventory and valuation of the portfolio;
Evolution of significant holdings;
Management report;
Investment projects;
Corporate, social and environmental responsibility.
Average attendance rate of Directors
- 2023: 87%
- 2022: 83%
- 2021: 83%
- 2020: 85%
- 2019: 71%
4. Committees of the Board of Directors
4.1. Audit Committee
The Committee consists of three members, of which
2 are independents and one is 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
1 January 2024 and has been in charge of supervising
the preparation of the financial information for the
year 2023.
The Board of Directors has proposed that it will be
constituted as follows:
• Mr. Frédéric Lemaire (Independent Director)
- Chairman
• Mr. Philippe Fabri (Director)
Corporate governance statement
Socfinaf S.A.
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35
The appointment of the non-executive members will
be confirmed at the General Meeting of Shareholders
on 29 May 2024.
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 the control of financial risks.
The Audit Committee shall meet three times a year.
4.2. Appointment and Remuneration Committee
The principal shareholders set the remuneration of
the operational management of Socfinaf. 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.
5. Remunerations
The remuneration allocated to the members of
the Board of Directors of Socfinaf for the financial
year of 2023 amounts to EUR 488,730 compared to
EUR 356,995 for the financial year 2022.
The Directors of Socfinaf did not receive any other
payment in shares (stock options).
6. Shareholding status
On 31 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 1 July
2011 and 31 December 2014 relate to the previous
number of shares in place and the previous number of
voting rights, i.e. 16,380,000.
On 31 December 2023, 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 31 December 2014.
Corporate governance statement
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7. Financial calendar
29 May 2024 Annual General Meeting at 10 a.m.
End of September 2024 Half year stand alone and consolidated results as at 30 June 2024
Mid-November 2023 Interim Management statement for 3
rd
quarter of 2024
End of March 2025 Annual stand alone results as at 31 December 2024
Mid-April 2025 Consolidated annual results as at 31 December 2024
Mid-May 2025 Interim Management statement for the 1
st
quarter of 2025
28 May 2025 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.
8. External audit
Independent statutory auditor
(Réviseur d’entreprises agréé)
Ernst & Young “EY”
35E Avenue John F. Kennedy
L-1855 Luxembourg.
In 2023, the audit fees amounted to EUR 732,412 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 2023 or
in 2022.
9. Corporate, social and environmental responsibility
Along with its specific commitment to transparency,
the Group has built a responsible management policy
around its three pillars of commitment, namely: rural
development, workers and local communities, and
environment. These commitments form the basis of
key initiatives that are aimed at improving long-term
economic performance, social well-being, health,
safety and natural resource management.
An implementation plan for this policy has been
defined and implemented since 2022.
The efforts and actions undertaken by the Socfinaf
Group in this area are detailed in a regularly updated
dashboard as well as in a separate annual report
(“Sustainable Development Report”).
10. Other information
Following the Regulation 2016/347 of the European
Commission of 10 March 2016 which specifies the
modalities for updating insider lists, a list of insiders
has been drawn up and is updated continuously. The
persons concerned were informed of their inclusion
on this list.
Socfinaf S.A.
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Statement of compliance
Mr. Philippe Fabri, Director and Mr. Daniel Haas, Chief
Financial Officer, indicate that, to their knowledge:
(a) In accordance with the International Financial
Reporting Standards as adopted by the European
Union, the consolidated financial statements
prepared for the year ended on 31 December
2023, 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
(b) the management report presents the following
information in a fairly manner: the evolution and
results of the Company, the financial position of
the Group and all the entities that are included in
the consolidation as well as a description of the
main risks and uncertainties they face.
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Directors’ report on the consolidated financial statements
presented by the Board of Directors to the
Annual General Meeting of the Shareholders of 29 May 2024
Ladies and Gentlemen,
1. Consolidated financial statements
The consolidated financial statements as at 31 December
2023 include the financial statements of Socfinaf, and
of all subsidiaries and direct and indirect associate
companies. The details are given in Note 2 of the notes
to the consolidated financial statements.
As stated in Note 1 to the consolidated financial
statements, the consolidated financial statements were
prepared in accordance with the International Financial
Reporting Standards (IFRS
G
) as adopted by the European
Union. Socfinaf (the Group) adopted IFRS
G
for the
first time in 2005, and implemented all the standards
applicable to the Group as at 31 December 2023.
Consolidated results
For the 2023 financial year, the result attributable
to the Group of the parent company amounted to
EUR 28.2 million compared to EUR 73.2 million in 2022.
This results in earnings per share of EUR 1.58 compared
to EUR 4.10 in 2022.
The consolidated revenue amounted to EUR 563.1 million
in 2023 compared to EUR 637.3 million in 2022 (decrease
of EUR 74.2 million). This decrease in revenue is mainly
due to the variation of transactional currency versus
Euro for EUR 74.9 million, the decrease in prices
for EUR 22.5 million whereas higher quantities sold
increased revenues for EUR 17.8 million.
Likewise, the operating profit decreased to
EUR 105.2 million, compared to EUR 175.3 million in
2022.
Other financial income amounted to EUR 22.9 million
compared to EUR 8.7 million in 2022 and consisted
mainly of foreign exchange gains of EUR 22.2 million
compared to EUR 8.0 million in 2022.
Financial expenses amounted to EUR 43.0 million
compared to EUR 41.2 million in 2022 and consisted
mainly of interest expense for EUR 14.7 million
(EUR 15.9 million in 2022) and foreign exchange losses
of EUR 26.8 million (EUR 24.6 million in 2022).
Furthermore, the tax expense decreased, with income
taxes amounting to EUR 36.6 million compared to
EUR 39.8 million in 2022.
Profit for the period from associates attributable to
the Group decreased to EUR 6.0 million compared to
EUR 11.3 million in 2022.
Consolidated statement of financial position
The assets of Socfinaf consist of:
- Non-current assets of EUR 600.1 million compared
to EUR 673.8 million in 2022, indicating a decrease
of EUR 73.7 million mainly due to the decrease of
biological assets for EUR -50.3 million, of property,
plant and equipment for EUR -44.7 million and to the
increase of right-of-use assets for EUR +21.1 million;
- Current assets that amounted to EUR 190.5 million
compared to EUR 229.8 million in 2022 This decrease
of EUR 39.3 million is mainly due to the decrease in
the value of inventory for EUR -17.0 million and in
cash and cash equivalents for EUR -23.9 million.
The shareholders’ equity amounted to EUR 363.9 million
compared to EUR 368.6 million in 2022. This decrease
in the shareholder’s equity of EUR 4.7 million is mainly
due to the profit for the period: EUR 28.2 million (2022:
EUR 73.2 million), to the impact of hyperinflation for
EUR 15.9 million and to the change in the translation
reserve for EUR -50.9 million.
Based on consolidated shareholders’ equity, the
net value per share
G
attributable to the Group was
EUR 20.40 compared to EUR 20.66 a year earlier. On
31 December 2023, the share price stood at EUR 10.80.
Consolidated management report
Consolidated management report
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Consolidated management report
Current and non-current liabilities decreased to
EUR 332.8 million compared to EUR 418.3 million a year
earlier.
Financial debts decreased to EUR 166.9 million in
2023 compared to EUR 247.4 million in 2022. This
mainly consists of loans to Socfinaf from Socfin for
EUR 80.0 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 34.0 million.
Deferred tax liabilities decreased to EUR 24.6 million
compared to EUR 33.1 million in 2022. Current tax
liabilities decreased to EUR 28.7 million compared to
EUR 40.7 million in 2022.
Net debt before IFRS
G
adjustments amounts to
EUR 113.4 million versus EUR 176.5 million as at
31 December 2022.
Consolidated cash flows
As at 31 December 2023, cash and cash equivalents
amounted to EUR 36.3 million, a decrease of
EUR 16.7 million for the year compared to a decrease of
EUR 3.1 million in the previous financial year.
Net cash flows from operating activities amounted
to EUR 147.0 million during the financial year 2023
(EUR 189.5 million in 2022). This resulted mainly
from self-financing capacity of EUR 176.9 million
(EUR 208.4 million in 2022), EUR 35.2 million of income
tax paid and EUR -9.0 million change in working capital.
Net cash flows from investing activities amounted to
EUR -48.5 million (EUR -53.4 million in 2022). These
activities are largely influenced by acquisitions of
tangible fixed assets amounting to EUR 45.8 million
(EUR 55.1 million in 2022).
Cash flows from financing activities amounted to
EUR 105.5 million (EUR 138.8 million in 2022), and is
mainly due to net reimbursement of borrowings for
EUR 63.1 million (compared to a net reimbursement in
2022 for EUR 92.6 million) and to the dividends paid for
EUR 23.1 million (EUR 28.9 million in 2022).
2. FINANCIAL INSTRUMENTS
Financial risk management policies are described in the notes to the consolidated financial statements of the
Company (see Notes 25 and 34).
3. OUTLOOK 2024
The results for the next financial year will largely depend
on factors that are external to the Group’s management
such as the prevailing political and economic conditions
in the countries where the subsidiaries are established,
the changes in the price of rubber and palm oil, but also
the price of the US dollar against the Euro. The Group,
for its part, maintains its policy of keeping cost prices as
low as possible and of improving its production capacity.
4. Political and economic environment
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.
Geopolitical uncertainties
In February 2022, a number of countries (including
the US, UK and EU) enforced 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.
Following the military operations initiated by Russia
against Ukraine on 24 February 2022, potential
additional sanctions were announced.
Consolidated management report
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On 7 October 2023 Palestinian militant groups led by
Hamas launched a coordinated surprise offensive on
Israel resulting in more than 1,200 deaths, primarily
Israeli citizens. Following this attack, Israel declared
itself in a state of war for the first time since the Yom
Kippur War in 1973.
Due to the geopolitical tensions, since February 2022,
there has been a significant increase in volatility on
the securities and currency markets. The conflicts
have had a significant impact on the financial markets,
with many investors concerned about the potential for
further escalation and the impact on global trade and
economic growth.
Although neither the company’s operations nor
performance and going concern have been significantly
impacted by the above in 2023, the Board of Directors
continues to monitor the evolving situation and the
possible effects on the financial position and results
of the company.
5. Events after the closing date
There are no material events after the closing date
to mention.
6. Corporate governance
The Board of Directors implements the corporate
governance rules that are applicable in the Grand
Duchy of Luxembourg into the Group’s financial
structure and reports.
Further information on how these rules are implemented
is available in the corporate governance statement of
the annual report and in the management report on
the Company’s stand-alone financial statements.
7. General internal control system adapted to the group’s specific activities
Segregation of functions
The segregation of the operational, commercial and
financial functions implemented at each level of the
Group encourages an autonomous model of internal
control.
In each of their area of responsibility, these different
functions ensure the completeness and reliability
of information. They provide regular updates on
this aspect to local managers and to the Group’s
headquarters, on information related to agricultural
and industrial production, trade, human resources,
finance, etc.
Autonomy and accountability of subsidiaries
The operational entities have a large degree of
autonomy in their management due to geographical
distances. In particular, they are responsible for
the implementation of an internal control system,
which is adapted not only to the nature and extent
of their activity, but also to the optimisation of their
operations and financial performances, the protection
of their assets and the management of their risks.
This autonomy allows the entities to be more
accountable and to ensure consistency between
their practices and the legal framework of their host
country.
Centralised control
The top management of the entities within the Group
adhere to a Human Resources Management policy,
which is centralised at the Group’s headquarters.
This policy contributes to the smooth running of the
internal control system and ensures its effectiveness
through different practices such as autonomous
recruiting processes, the harmonisation of all
segregated functions, as well as annual evaluations
and training programs.
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The operational, commercial and financial functions
centrally define a set of standard reports which ensure
that information originating from the subsidiaries is
presented homogenously.
Treasury reporting process
The treasury department organises, supervises and
controls the reporting of the subsidiaries’ daily
information and weekly indicators. In particular, it
monitors the position of the cash flow, the evolution
of net debt and the expenses related to investments.
Financial reporting process
The financial department organises, supervises
and controls the reporting of monthly accounting,
budgetary and financial information. It distributes
condensed reports used 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 subsidiaries’ Board of Directors.
Preparation of consolidated accounts
The consolidated financial statements are prepared
on a half-yearly basis. On a yearly basis, they are
audited 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 a number of procedures,
such as the secure processing of information
feedback from subsidiaries, the transparency and
relevance of automatic consolidation processes
and the consistency of the accounting aggregates’s
presentation in the annual report. Lastly, due to the
complexity of the accounting standards in force and
the many specificities around their implementation,
the consolidation service centralises the adjustments
specific to the valuation rules applicable to the
consolidated financial statements.
8. Environment and social responsibility
Along with its specific commitment to transparency, the
responsible management policy embodies the Group’s
three pillars of commitment: rural development,
workers and local communities, and environment.
These commitments form the basis of key initiatives
aimed at improving long-term economic performance,
social well-being, health, safety and natural resource
management.
An implementation plan for this policy was defined
and implemented since 2022.
A regularly-updated dashboard as well as a separate
annual report (“Sustainable Development Report”)
detail the efforts and actions undertaken by the Socfin
Group in relation to this policy.
The responsible management policy, the dashboard
and the annual sustainable development report are
available on the Group’s website.
The Board of Directors
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Auditor’s report on the consolidated financial statements
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
To the Shareholders of
Socfinaf S.A.
4, Avenue Guillaume
L-1650 Luxembourg
Opinion
We have audited the consolidated financial
statements of Socfinaf S.A. (the “Company”) and
its subsidiaries (the “Group”), which comprise the
consolidated statement of financial position as at
31 December 2023, and the consolidated statement of
comprehensive income, the consolidated statement
of changes in equity and the consolidated statement
of cash flows for the year then ended, and the notes
to the consolidated financial statements, including
material accounting policy information.
In our opinion, the accompanying consolidated
financial statements give a true and fair view of the
consolidated financial position of the Company as at
31 December 2023, and of its consolidated financial
performance and consolidated cash flows for the year
then ended in accordance with International Financial
Reporting Standards (“IFRS”) as adopted by the
European Union.
Basis for opinion
We conducted our audit in accordance with EU
Regulation N° 537/2014, the Law of 23 July 2016 on
the audit profession (“Law of 23 July 2016”) and with
International Standards on Auditing (“ISAs”) as adopted
for Luxembourg by the “Commission de Surveillance
du Secteur Financier” (“CSSF”). Our responsibilities
under the EU Regulation Nº 537/2014, the Law of
23 July 2016 and ISAs as adopted for Luxembourg by
the CSSF are further described in the “Responsibilities
of the “réviseur d’entreprises agréé” for the audit of
the consolidated financial statements” section of our
report. We are also independent of the Company in
accordance with the International Code of Ethics for
Professional Accountants, including International
Independence Standards, issued by the International
Ethics Standards Board for Accountants (“IESBA Code”)
as adopted for Luxembourg by the CSSF together
with the ethical requirements that are relevant to
our audit of the consolidated financial statements,
and have fulfilled our other ethical responsibilities
under those ethical requirements. We believe that
the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the consolidated financial statements of
the current period. These matters were addressed in
the context of the audit of the consolidated financial
statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on
these matters.
Valuation of biological assets
Risk identified
As at 31 December 2023, the value of the Group’s
biological assets amounted to EUR 300.0 million out of
total assets of EUR 797.0 million.
The Group owns biological assets in Africa. These
biological assets, which consist mainly of oil palm and
rubber plantations, are valued in accordance with
the principles defined in IAS 16 “Property, Plant and
Equipment”. These assets are recognised at cost less
accumulated depreciation and any impairment losses.
The Note 9 “Impairment of assets” of the consolidated
financial statements describes the methodology used
by Group management to assess whether there is any
indicator of impairment or any indicator of impairment
reversal at the balance sheet date. When an indicator
is identified, Group management determines the
recoverable amount of the biological assets and thus
determines the impairment loss or the reversal of
impairment to be recognised, if any.
The indicators used by Group Management are:
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• a decrease or an increase of the listed price of
natural rubber (TSR20 1st position on SGX) and the
listed price of crude palm oil (CIF Rotterdam) at the
balance sheet date higher than 15% compared to a
five-year average of the prices observed on those
markets
• a decrease or an increase of the six-month average
of the prices observed of those markets higher than
15% compared to a five-year average of the prices
observed on those markets
• a decrease or an increase of the twelve-month
average of the prices observed of those markets of
more than 15% compared to a five-year average of
the prices observed on those markets
For palm oil, which is mainly sold on local markets,
Group Management also analyses local sales prices,
considering that a decrease or an increase in these
prices at the balance sheet date higher than 15%
compared to a five-year average value of the local
prices constitutes an indicator of impairment or an
indicator of impairment reversal respectively.
In addition to these external factors, the Group
analyses the following internal performance
indicators:
- Specificities of the local market (evolution of
supply and demand, ...);
- Physical indications of impairment;
- Significant changes in the plantations that could
have a material impact on future cash flows.
The recoverable amount is determined as the higher
of the value in use and the fair value less costs of
disposal. The value in use is defined in terms of
discounted future net cash flows and involves
significant judgements and estimations by Group
Management, including financial forecasts and the
utilization of appropriate discount rates.
We considered the valuation of biological assets to be
a key audit issue because of :
- their significance in relation to the Group’s total
assets
- the assessment of whether there is any indicator
of impairment or any indicator of impairment
reversal; and
- the determination of their recoverable amount
which involves significant judgements and
estimates.
Audit response
In order to assess the reasonableness of an indicator
of impairment or an indicator of impairment reversal
and, where appropriate, to determine the recoverable
amount of biological assets, we performed the
following audit procedures :
• Assess the compliance of Group’s management’s
methodology with the provisions of IAS 36
“Impairment of Assets”;
• Analyze the methodology used with a particular
focus on the indicators of impairment or on the
indicators of impairment reversal;
• Analyze the completeness of indicators of
impairment or indicators of impairment reversal:
- Evaluating the assessment performed by
Group management to identify the existence
of indicators of impairment or indicators of
impairment reversal by comparing the underlying
data of the analysis with the source of the data
used;
- Comparing the evolution of yields per hectare;
and
- Overseeing the audit work of the components
auditors of material subsidiaries to identify any
indicators of impairment or any indicators of
impairment reversal, including that site visits of
the plantations have been carried out;
• In case of identification of an indicator of impairment
or an indicator of impairment reversal, we
- Assess the appropriateness of the methodology
applied by Group Management to determine
the recoverable value of the biological assets
and the accuracy of any impairment loss or any
impairment reversal recorded;
- Analyze the reasonableness of the cash flow
forecasts used by Group Management to determine
the value in use of the biological assets;
- Assess the reasonableness of the assumptions and
inputs used by Group management; and
- Reconcile the key inputs used in the model with
information audited by the components auditors
of material subsidiaries.
• Assess whether the disclosures required by IAS 36
“Impairment of Assets” for biological assets are
properly disclosed in the notes of the consolidated
financial statements.
Auditor’s report on the consolidated financial statements
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Other information
The Board of Directors is responsible for the other
information. The other information comprises the
information included in the consolidated management
report and the corporate governance statement but
does not include the consolidated financial statements
and our report of “réviseur d’entreprises agréé”
thereon.
Our opinion on the consolidated financial statements
does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated
financial statements, our responsibility is to read the
other information and, in doing so, consider whether
the other information is materially inconsistent
with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we
have performed, we conclude that there is a material
misstatement of this other information, we are
required to report this fact. We have nothing to report
in this regard.
Responsibilities of the Board of Directors and
of those charged with governance for the
consolidated financial statements
The Board of Directors is responsible for the preparation
and fair presentation of the consolidated financial
statements in accordance with IFRS as adopted by the
European Union, and for such internal control as the
Board of Directors determines is necessary to enable
the preparation of consolidated financial statements
that are free from material misstatement, whether
due to fraud or error.
The Board of Directors is also responsible for presenting
and marking up the consolidated financial statements
in compliance with the requirements set out in the
Delegated Regulation 2019/815 on European Single
Electronic Format, as amended (“ESEF Regulation”).
In preparing the consolidated financial statements,
the Board of Directors is responsible for assessing
the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of
accounting unless the Board of Directors either intends
to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance are responsible for
overseeing the Company’s financial reporting process.
Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the financial statements
The objectives of our audit are to obtain reasonable
assurance about whether the consolidated financial
statements as a whole are free from material
misstatement, whether due to fraud or error, and to
issue a report of the “réviseur d’entreprises agréé”
that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that
an audit conducted in accordance with EU Regulation
N° 537/2014, the Law of 23 July 2016 and with the
ISAs as adopted for Luxembourg by the CSSF will
always detect a material misstatement when it
exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
the basis of these consolidated financial statements.
As part of an audit in accordance with EU Regulation
N° 537/2014, the Law of 23 July 2016 and with ISAs
as adopted for Luxembourg by the CSSF, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the consolidated financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
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• Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting
estimates and related disclosures made by the
Board of Directors.
• Conclude on the appropriateness of Board of
Directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists,
we are required to draw attention in our report of
the “réviseur d’entreprises agréé” to the related
disclosures in the consolidated financial statements
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our report of
the “réviseur d’entreprises agréé”. However, future
events or conditions may cause the Company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and
content of the consolidated financial statements,
including the disclosures, and whether the
consolidated financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.
• Assess whether the consolidated financial
statements have been prepared, in all material
respects, in compliance with the requirements laid
down in the ESEF Regulation.
• Obtain sufficient appropriate audit evidence
regarding the financial information of the entities
and business activities within the Group to express
an opinion on the consolidated financial statements.
We are responsible for the direction, supervision
and performance of the Group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
communicate to them all relationships and other
matters that may reasonably be thought to bear on
our independence, and where applicable, related
safeguards.
From the matters communicated with those charged
with governance, we determine those matters
that were of most significance in the audit of the
consolidated financial statements of the current period
and are therefore the key audit matters. We describe
these matters in our report unless law or regulation
precludes public disclosure about the matter.
Report on other legal and regulatory
requirements
We have been appointed as “réviseur d’entreprises
agréé” by the General Meeting of the Shareholders on
26 May 2020 and the duration of our uninterrupted
engagement, including previous renewals and
reappointments, is 4 years.
The consolidated management report is consistent
with the consolidated financial statements and has
been prepared in accordance with applicable legal
requirements.
The accompanying corporate governance statement
on pages 31 to 36 is the responsibility of the Board
of Directors. The information required by article
68ter paragraph (1) letters c) and d) of the law of
19 December 2002 on the commercial and companies
register and on the accounting records and annual
accounts of undertakings, as amended, is consistent
with the consolidated financial statements and has
been prepared in accordance with applicable legal
requirements.
We have checked the compliance of the consolidated
financial statements of the Company as at 31
December 2023 with relevant statutory requirements
set out in the ESEF Regulation that are applicable to
the financial statements. For the Company, it relates
to :
• Financial statements prepared in valid xHTML
format;
• The XBRL markup of the consolidated financial
statements using the core taxonomy and the
common rules on markups specified in the ESEF
Regulation.
In our opinion, the consolidated financial statements
of the Company as at 31 December 2023, identified
Auditor’s report on the consolidated financial statements
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as Socfinaf-2023-12-31-en.zip, have been prepared,
in all material respects, in compliance with the
requirements laid down in the ESEF Regulation.
We confirm that the audit opinion is consistent with
the additional report to the audit committee or
equivalent.
We confirm that the prohibited non-audit services
referred to in EU Regulation No 537/2014 were not
provided and that we remained independent of the
Company in conducting the audit.
Ernst & Young
Société anonyme
Cabinet de révision agréé
Anthony Cannella
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Consolidated financial statements
1. Consolidated statement of financial position
31/12/2023 31/12/2022
Restated (*)
01/01/2022
Restated (*)
ASSETS Note EUR EUR EUR
Non-Current Assets
Right-of-use assets 4 29,232,550 8,169,573 7,484,998
Intangible assets 5 991,732 1,449,899 1,958,916
Property, plant and equipment 6 232,787,778 277,533,909 269,676,822
Biological assets 7 299,988,603 350,244,763 365,903,978
Investments in associates 11 24,499,660 27,288,358 23,619,982
Financial assets at fair value through other
comprehensive income
G
12 4,800,038 300,038 38
Long-term advances
Deferred tax assets 13 2,735,633 4,513,651 9,421,066
Other non-current assets
Current Assets
Inventories 16 88,736,703 105,769,814 92,844,873
Current biological assets 2,129,780 3,005,618 2,423,966
Trade receivables 17 27,235,836 23,519,223 28,185,332
Other receivables 18 23,131,220 21,440,996 8,995,522
Current tax assets 14 9,549,095 12,438,610 13,378,526
Cash and cash equivalents 19 39,741,654 63,638,033 63,091,772
Assets classified as held for sale
38
TOTAL ASSETS 796,979,318 903,596,830 890,475,317
(*) For further details, refer to Note 3.
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
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31/12/2023 31/12/2022
Restated (*)
01/01/2022
Restated (*)
EQUITY AND LIABILITIES Note EUR EUR EUR
Equity attributable to the owners of the Parent
Share capital 20 35,673,300 35,673,300 35,673,300
Share premium 20 87,453,866 87,453,866 87,453,866
Legal reserve 21 3,567,330 3,567,330 3,567,330
Consolidated reserves
Translation reserves
-121,624,614 -70,699,935 -63,611,554
Profit / (loss) for the period
Non-controlling interests
G
10 100,045,115 116,745,946 113,878,970
Total Equity
Non-Current Liabilities
Deferred tax liabilities 14 24,585,197 33,149,100 32,481,370
Employee Benefits Obligations 22 12,501,274 12,366,549 12,054,536
Long-term debt, net of current portion 23 102,778,317 163,937,129 240,634,699
Long-term lease liabilities 4 24,950,880 8,674,141 8,285,305
Other payables 24 1,332,110 1,650,571 1,445,937
Current Liabilities
Short-term debt and current portion of long-
term debt
23 64,103,627 83,477,325 75,991,471
Short-term lease liabilities 4 2,778,042 1,532,064 1,105,090
Trade payables
24
Current tax liabilities 14 28,701,137 40,651,438 30,408,824
Provisions
Other payables 24 24,038,868 22,042,487 28,473,281
Liabilities associated with assets classified as
held for sale
38 284,279 0 0
TOTAL EQUITY AND LIABILITIES 796,979,318 903,596,830 890,475,317
(*) For further details, refer to Note 3.
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
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49
2. Consolidated income statement
2023 2022
Restated (*)
Note EUR EUR
Revenue 33 563,066,846 637,341,934
Change in inventories of finished products and work in progress
Other operational income
33
Raw materials
G
and consumables used
33
-198,032,506 -178,603,713
Other expenses
33
-118,502,853 -128,138,069
Staff costs 26 -78,909,883 -72,776,228
Depreciation and impairment expense 8 -68,590,445 -58,213,723
Other operating expenses
33
-14,677,733 -25,015,835
Operating profit / (loss)
Other financial income
27
Gain on disposals
Loss on disposals
-342,369 -1,833,410
Financial expenses 28 -43,023,377 -41,163,373
Profit / (loss) before taxes
Income tax expense 15 -36,557,147 -39,796,407
Deferred tax (expense) / income 13 -4,971,264 -6,528,620
Share of the Group in the result from associates 11 6,002,745 11,297,778
Profit / (loss) for the period
Profit / (loss) attributable to non-controlling interests
G
Profit / (loss) attributable to the owners of the Parent
Basic earnings per share undiluted 1.58 4.10
Number of Socfinaf shares
Basic earnings per share
Diluted earnings per share
(*) For further details, refer to Note 3.
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
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3. Consolidated statement of comprehensive income
31/12/2023 31/12/2022
Restated (*)
Note EUR EUR
Profit / (loss) for the period
Other comprehensive income
G
Actuarial gains / (losses) 22 -1,468,299 902,556
Deferred tax on actuarial losses and gains
Subtotal of items that cannot be reclassified to profit or loss
-866,202 714,932
Gains / (losses) on exchange differences on translation of subsidiaries (**)
-62,323,635 -6,900,555
Share of other comprehensive income related to associates
11
-337,884 443,736
Subtotal of items eligible for reclassification to profit or loss
-62,661,519 -6,456,819
Total other comprehensive income
-63,527,721 -5,741,887
Total comprehensive income
-14,202,953 100,294,055
Comprehensive income attributable to non-controlling interests
G
Comprehensive income attributable to the owners of the Parent
-20,606,051 67,905,698
(*) For further details, refer to Note 3.
(**)
Of which EUR -33.1 million relating to Okomu and EUR -13.6 million relating to PSG (following the important
devaluation of the Naira and the Cedi during the period, refer to Note 1.9).
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
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4. Consolidated statement of cash flows
2023 2022
Restated (*)
Note EUR EUR
Operating activities
Profit / (loss) attributable to the owners of the Parent
Profit / (loss) attributable to non-controlling shareholders
Income from associates 11 -6,002,745 -11,297,777
Dividends received from associates 11 8,292,174 7,126,982
Fair value of agricultural production 9,659,361 -5,789,099
Other adjustments having no impact on cash position
Depreciation and impairment expense 8 68,590,445 58,213,723
Provisions and allowances
Net loss on disposals of assets
Income tax expense and deferred tax 41,528,411 46,325,027
Cash flows from operating activities
Interest expense 27, 28 14,238,101 15,590,970
Income tax paid 15 -35,155,555 -39,796,406
Change in inventory
-5,993,340 -8,943,177
Change in trade and other receivables
-14,979,594 -13,221,521
Change in trade and other payables
Change in accruals and prepayments
Change in working capital requirement
-9,025,950 5,290,175
Net cash flows from operating activities
Investing activities
Acquisitions / disposals of intangible assets
-15,444 -32,003
Acquisitions of property, plant and equipment and biological assets 6, 7 -45,765,516 -55,144,750
Disposals of property, plant and equipment 1,553,935 1,655,010
Acquisitions / disposals of financial assets
12
-4,741,780 134,933
Interest received 27 419,665 0
Net cash flows from investing activities
-48,549,140 -53,386,810
Financing activities
Dividends paid to non-controlling shareholders
10
-23,106,115 -28,941,422
Proceeds from borrowings 23 3,564,029 7,030,288
Repayment of borrowings
23
-66,681,107 -99,581,546
Repayment of lease liabilities
23
-4,623,622 -1,737,556
Interest paid
28
-14,657,766 -15,590,970
Net cash flows from financing activities
-105,504,581 -138,821,206
Effect of exchange rate fluctuations
-9,216,071 -446,315
Effect of cash linked to assets held for sale
38
-361,169 0
Net cash flow
-16,670,845 -3,120,312
Cash and cash equivalents as at 1 January 19 52,942,133 56,062,445
Cash and cash equivalents as at 31 December 19 36,271,288 52,942,133
Net increase / (decrease) in cash and cash equivalents
-16,670,845 -3,120,312
(*) For further details, refer to Note 3.
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
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5. Consolidated statement of changes in equity
EUR
Share
capital
Share
premium
Legal
reserve
Translation
reserves
Conso-
lidated
reserves
Equity
attributable
to the
owners of
the Parent
Non-
controlling
interests
G
TOTAL
EQUITY
Balance as at 1 January 2022 – Restated (*)
Profit / (loss) for the period
Actuarial (losses) / gains
Foreign currency translation adjustments
-6,344,132 -6,344,132 -556,423 -6,900,555
Share in other comprehensive income
G
from associates
Total comprehensive income
-6,344,132 74,249,830 67,905,698 32,388,357 100,294,055
Dividends (Note 10)
Interim dividends (Note 10)
Other movements
-744,249 -130,797 -875,046 -579,959 -1,455,005
Transactions with shareholders
-744,249 -130,797 -875,046 -29,521,381 -30,396,427
Balance as at 31 December 2022 – Restated (*)
Balance as at 1 January 2023
Profit / (loss) for the period
Actuarial (losses) / gains
-490,124 -490,124 -376,078 -866,202
Foreign currency translation adjustments
-48,026,382 -48,026,382
-14,297,253
-62,323,635
Transfer between reserves
-2,898,297 2,898,297 0 0
Share in other comprehensive income
G
from associates
-337,884 -337,884 -337,884
Total comprehensive income
-50,924,679 30,318,628 -20,606,051 6,403,098 -14,202,953
Dividends (Note 10)
Interim dividends (Note 10)
Hyperinflation
Other movements
Transactions with shareholders
Balance as at 31 December 2023
(*) For further details, refer to Note 3.
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated financial statements
Socfinaf S.A.
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6. Notes to the consolidated financial statements
Note 1. Overview and accounting policies
1.1. Overview
1961. Its corporate purpose qualifies it as a holding company
“soparfi”
G
(terms having a
G
are explained part “Glossary” at the
end of the annual report) since the Annual General Meeting of
10 January 2011. The registered office is established at 4, avenue
The main activity of the Company and its subsidiaries (the
“Group”) is the management of a portfolio of holdings that
mainly focus on the exploitation of tropical oil palm and rubber
plantations in Africa.
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.
1.2. Statement of compliance
The consolidated financial statements have been prepared
on a going concern basis and in accordance with International
Financial Reporting Standards (IFRS
G
) as adopted by the European
Union. The consolidated financial statements are presented in
On 27 March 2024, 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 these financial statements is the ESEF
G
version
available with the Officially Appointed Mechanism (OAM) tool.
New standards and amendments issued but not yet effective
on 1 January 2023:
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 does it anticipate the
early adoption of new accounting standards, amendments and
interpretations.
- In January 2020 and October 2022, the IASB issued amendments
to paragraphs 69 to 76 of IAS 1 “Presentation of Financial
Statements” to specify the requirements for classifying
liabilities as current or non-current. The amendments clarify:
• What is meant by a right to defer settlement
• That a right to defer must exist at the end of the reporting
period
• That classification is unaffected by the likelihood that an entity
will exercise its deferral right
• That only if an embedded derivative in a convertible liability
is itself an equity instrument would the terms of a liability not
impact its classification
In addition, a requirement has been introduced to require
disclosure when a liability arising from a loan agreement
is classified as non-current and the entity’s right to defer
settlement is contingent on compliance with future covenants
within twelve months. The amendments are effective for
annual reporting periods beginning on or after 1 January 2024
and must be applied retrospectively.
- In September 2022, the IASB issued amendments to IFRS
G
16 to
specify the requirements that a seller-lessee uses in measuring
the lease liability arising in a sale and leaseback transaction,
to ensure the seller-lessee does not recognise any amount
of the gain or loss that relates to the right of use
G
it retains.
The amendments are effective for annual reporting periods
beginning on or after 1 January 2024 and must applied
retrospectively to sale and leaseback transactions entered
into after the date of initial application of IFRS
G
16. Earlier
application is permitted and that fact must be disclosed.
New IFRS
G
standards, amendments and interpretations not
yet endorsed by the European Union:
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 does it anticipate the
early adoption of new accounting standards, amendments and
interpretations.
Consolidated financial statements
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- On 25 May 2023, the IASB issued amendments to
IAS
G
7 and IFRS
G
7 “Supplier Finance Arrangements”:
the amendments clarify the characteristics of
an arrangement for which an entity is required
to provide the information. They also require
entities to disclose information that allows users
to assess how supplier finance arrangements affect
an entity’s liabilities, cash flows and exposure to
liquidity risk. Such information may consist of the
terms and conditions of these arrangements and the
carrying amount of the supplier finance arrangement
financial liabilities. The amendments will be applied
to annual reporting periods beginning on or after
1 January 2024, with early adoption permitted.
- On 25 August 2023, the IASB issued amendments
to IAS
G
21 “Lack of Exchangeability”. The
amendments clarify how an entity should assess
whether a currency is exchangeable, and how
it should determine a spot exchange rate when
exchangeability is lacking. They also explain how an
entity should specify information disclosures so that
they help users of financial statements understand
the impact of a currency that is not exchangeable.
The amendments will be applied prospectively
to annual reporting periods beginning on or after
1 January 2025, with early adoption permitted.
1.3. Presentation of the consolidated financial
statements
The consolidated financial statements are presented
in euros (EUR or €).
They are prepared based on historical cost with the
exception of the following assets:
- Biological assets (current) (IAS 2, IAS 41), securities
measured at fair value through other comprehensive
income
G
, all of which are recognised at fair value;
- Property, plant and equipment acquired as part of a
business combination (IFRS 3), which 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 on 31 December 2023,
and are presented before the Annual General Meeting
of shareholders that approves the allocation of the
parent company’s income.
As of 1 January 2023, the Group adopted the following
amendments without any material impact on the
Group’s consolidated financial statements:
- IFRS 17 “Insurance Contracts” and its amendments:
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.
- 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.
- Amendments to IAS 8 Definition of Accounting
Estimates: the amendments to IAS 8 clarify
the distinction between changes in accounting
estimates, changes in accounting policies and the
correction of errors. They also clarify how entities
use measurement techniques and inputs to develop
accounting estimates.
- Amendments to IAS 1 and IFRS Practice Statement 2
Disclosure of Accounting Policies: the amendments
to IAS 1 and IFRS Practice Statement 2 Making
Materiality Judgements provide guidance and
examples to help entities apply materiality
judgements to accounting policy disclosures. The
amendments aim to help entities provide accounting
policy disclosures that are more useful by replacing
the requirement for entities to disclose their
‘significant’ accounting policies with a requirement
to disclose their ‘material’ accounting policies and
adding guidance on how entities apply the concept
of materiality in making decisions about accounting
policy disclosures.
- Amendments to IAS 12 “International Tax Reform –
Pilar Two Model Rules”: on 23 May 2023, the IASB
issued amendments to IAS 12 in order to respond
to concerns about the potential implications of
the OECD Pillar Two model rules. The amendments
introduce, in IAS 12, a mandatory exception from
recognising and disclosing deferred tax assets and
Consolidated financial statements
Socfinaf S.A.
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liabilities related to Pillar Two income taxes on the
one hand, and disclosure requirements on the other.
The latter are intended for affected entities to help
users of the financial statements have a better
understanding of the exposure to Pillar Two income
taxes that arise from that legislation, in particular
before its effective date. The consequences of this
amendment are further disclosed in Note 13.
1.4. Consolidation principles
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 of 31 December 2023 close their accounts on
31 December.
a) Subsidiaries
In accordance with IFRS 10, an investor has control
when it fulfills three conditions:
1) It holds power over the entity;
2) It is entitled to or is exposed to variable returns
from its involvement;
3) It has the ability to use its power over the entity to
affect returns.
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 components of other comprehensive
income are attributed to the equity holders of
the parent of the Group and to the non-controlling
interests
G
, even if this results in the non-controlling
interests
G
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 the Group.
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
G
and other
components of equity. Any residual gain or loss is
recognised in profit or loss, while 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. 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
G
.
The profit or loss statement reflects the Group’s
share in the results of the associate or joint venture’s
operations. Any change in other comprehensive
income
G
of those investees is presented as part of
the Group’s other comprehensive income
G
. 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
Consolidated financial statements
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separately. An impairment test is performed if an
objective indication 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.
1.5. Changes in accounting policies, errors and
changes in estimates
A change in accounting policy is applied only if
it meets the requirements of a standard or of an
interpretation or if it 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 to 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.
1.6. Business combinations
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
G
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.
1.7. Goodwill
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
G
, 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 disposal’s result.
1.8. Gain on a bargain purchase
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.
Insofar as gain on a bargain purchase remains after
considering and reassessing the fair value of identifiable
assets and liabilities as well as of contingent liabilities
of a subsidiary or associate, it is recognised directly as
an income in the income statement.
1.9. Foreign currency conversion
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. The exchange rate in force is
applied 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 differences”. In the event
of a disposal, the translation differences 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.
Consolidated financial statements
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The following exchange rates have been used for the conversion of the consolidated financial statements:
| Closing rate | Average rate | |||
| 1 euro equals to: | 31/12/2023 | 31/12/2022 | 2023 | 2022 |
| Euro | 1.000 | 1.000 | 1.000 | 1.000 |
| CFA franc | 655.957 | 655.957 | 655.957 | 655.957 |
| Ghanaian cedi | 13.1274 | 9.1472 | 12.0698 | 8.4184 |
| Nigerian naira | 994.55 | 478.92 | 661.63 | 445.11 |
| Dobra of São Tomé | 24.50 | 24.50 | 24.50 | 24.50 |
| Congolese franc | 2,961 | 2,151 | 2,514 | 2,103 |
| American dollar | 1.1050 | 1.0666 | 1.0826 | 1.0479 |
1.10. Intangible assets
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 |
| ConcessionsG | Length of the concessionsG |
Amortisation starts from the date when the asset is
available to use.
Gains or losses arising from derecognition of assets
(i.e. the difference between the disposal proceeds
and the carrying amount of the asset) are included in
the income statement when assets are derecognised.
1.11. Property, plant, equipment
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,
according to 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 starts from the date that the assets are
available to use.
Land is not subject to depreciation.
Gains or losses arising from the derecognition of assets
(i.e. the difference between the disposal proceeds
and the carrying amount of the asset) are included in
the income statement when assets are derecognised.
1.12. Bearer biological assets
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 “Property, plant and
equipment”.
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”.
Bearer biological assets
Producer biological assets are recorded at acquisition
cost, less accumulated amortisation and any
impairment losses.
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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 |
The depreciation starting date is the date of transfer
of biological assets in production (i.e. 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
Agricultural production at harvest is valued at fair
value less the 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
G
(finished
product). These forecasts are based on the RSS3
G
grade
(smoked sheet
G
) 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 can hence not 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.
1.13. Leases
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-of-use 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 the non-segregation of
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, the 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 unknown 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
whose value is similar to the asset under the right-of-
use in a similar economic environment.
Consolidated financial statements
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In determining the incremental borrowing rate, the
Group:
- where possible, uses the most recent financing
received by the lessee as a starting point, which
was adjusted to reflect the change in financing
conditions since the financing was received;
- uses a build-up approach starting with a risk-free
rate which was 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. Right-of-use assets are depreciated on a
The Group applies IAS 36 to determine whether a
right-of-use asset is impaired and recognises any
impairment loss as described in Note 9: Impairment
of assets.
1.14. 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
highest of the fair value less the 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 which was 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.
It is not possible to subsequently reverse an impairment
loss recorded on goodwill.
1.15. Inventories
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 based on 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.
1.16. Trade receivables
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
Consolidated financial statements
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estimate of the inability of its customers to make the
required payments (refer to Note 34).
1.17. Cash and cash equivalents
Cash and cash equivalents include cash, demand
deposits, short-term deposits of less than 3 months,
as well as investments that are subject to a negligible
risk of change in value and are easily convertible into
a known amount of cash, having a maturity of three
months or less.
1.18. Financial instruments
Financial assets and liabilities are recognised in the
consolidated statement of the financial position
when the Group becomes a party to the contractual
provisions of the instrument.
Loans and borrowings
The Group’s business model for financial assets
management describes 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,
from the disposal of financial assets, or both. Financial
assets classified and measured at amortised cost are
held in a business model with the aim to hold financial
assets and collect contractual cash flows. Long-term
advances and other receivables are held for the sole
purpose of collecting principal and interest. As such,
they comply with the “Solely Payments of Principal
and Interest” (SPPI
G
) model. They are accounted for
using the amortised cost method.
Loans bearing interest are recorded at the net value
of the amounts given, less 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 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 the net value of amounts received, minus
direct issue costs. 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 25).
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 25).
Financial assets designated at fair value through
OCI (equity instruments)
Upon initial recognition, the Group can elect to
classify irrevocably its equity investments as equity
instruments designated at fair value through OCI
if 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 into 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. The Group
continues to hold these equity investments (also refer
to Note 12).
Consolidated financial statements
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Other financial assets and liabilities
Other financial assets (trade receivables, other
receivables, ...) and 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), which was
adjusted for prospective factors specific to the
debtors and the economic environment. The carrying
amount of the asset is reduced using 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 by
taking into account the local economic reality of each
country. They are reviewed at the reception of new
events and at least annually.
1.19. Provisions
Provisions occur when the Group has a present
obligation (legal or constructive) as a result of a past
event. This present obligation will probably lead to an
outflow of economic benefits, insofar as they can be
reasonably estimated.
Restructuring provisions occur when the Group has
come up with a formal and detailed plan for the
restructuring, which has been notified to the affected
parties.
1.20. Pension obligations
Defined contribution plans
The defined contribution 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 when they are due.
As these plans do not generate future commitments
for the Group, they do not give rise to provisions.
Defined benefit plans
The defined benefit 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 prevailing economic
conditions in the country in which the plan is located.
The discount rates applicable to post-employment
benefit obligations should be determined by reference
to the market yields on high quality corporate bonds
that are appropriate/relevant 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 whose duration corresponds to the terms of
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
by using the projected unit credit method, with a
discounted value calculation at the balance sheet
date in accordance with the principles of IAS
G
19
“Employee Benefits”.
All changes in the amount of defined benefit pension
obligations are recognised as soon as they occur.
Remeasurements of defined benefit pension
obligations, including actuarial gains and losses, should
be recognised immediately in “Other comprehensive
income”
G
.
Consolidated financial statements
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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 consists of the present value of the defined
benefit plans’ pension obligations. This value has been
adjusted for actuarial gains and losses, minus the fair
value of plan assets.
1.21. Revenue recognition
The Group’s revenues derive from the performance
obligation to transfer the 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 the moment when the goods are made
available to the carrier or when the buyer takes
possession of the goods. This also depends 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 is 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, to which the
company expects to be entitled.
The selling price is determined at the market price
and, in a few cases, is contractually determined on
a provisional basis using a reliable estimate. 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 itself to be the principal in its
revenue arrangements, because it controls the goods
sold before transferring them to the customers.
As at 31 December 2023, revenue from the major
Group customer accounted for approximately
EUR 197.8 million (2022: EUR 247.5 million) of total
Group revenue.
1.22. Taxes
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.
The application of the latter is provided for when
reversing the temporary differences, as adopted on
the closing date.
Deferred tax is recognised for all taxable temporary
differences, except when the deferred tax is
generated:
- by goodwill or;
- by the initial recognition of an asset or liability
in a transaction which is not acquired through a
business combination. It does not affect neither
the accounting profit nor the taxable profit (tax
loss), and does not give rise to equal taxable and
deductible temporary differences at the time of the
transaction.
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
controlled and will most likely not be reversed in the
foreseeable future.
A deferred tax asset is recognised in order to carry
forward unused tax losses and tax credits, so that
future taxable profits, on which these unused tax
losses and tax credits can be charged, will likely be
available.
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.
The Group applies the mandatory exception to
recognise and disclose information about deferred
tax assets and liabilities related to Pillar Two income
taxes.
1.23. Segment information
IFRS
G
8 – Operating Segments requires operating
segments to be identified based on an internal
reporting. This internal reporting is analysed by the
Consolidated financial statements
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entity’s chief operating decision-maker, in order to
assess performance and make resource decisions for
the segments.
The identification of these operational sectors
originates from the information that is analysed
by the management. This information based on the
geographic distribution of political and economic risks
and on the analysis of individual social accounts at
historical cost.
1.24. Use of estimates
For the preparation of consolidated financial
statements in accordance with IFRS, the Group’s
management has made use of its best estimates to
make assumptions on the extent to which the following
aspects were affected: 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
changing economic conditions, the amounts that will
appear in the Group’s future consolidated financial
statements may still differ from current estimates.
Material accounting policies, for which the Group
has made estimates, mainly concern the application
of IAS
G
19 - Employee Benefits (Note 22), IAS
G
41 -
Agriculture and IAS
G
2 - Inventories (Notes 7 and 16),
IAS
G
16 - Property, Plant and Equipment (Note 6), IAS
G
36 - Impairment of Assets (Notes 6, 7 and 9), IFRS
G
9 -
Financial Instruments (Note 25) and IFRS
G
16 – Leases
(Note 4).
In the absence of observable data within the scope
of IFRS
G
13 – Fair Value Measurement, the Group
makes use of a model that was developed to assess
the fair value of agricultural production, using local
production costs and conditions, and local sales (Refer
to Note 1.12).
This method is inherently more volatile than
assessment at historical cost.
1.25. Non-Current Assets held for sale
Non-current assets (or disposal groups) are classified
as assets that are held for sale when their carrying
amount is to be recovered principally through a sale
transaction and when a sale is considered highly
probable. If their carrying amount is recovered
principally through a sale transaction rather than
through continuing use, these assets are stated at the
lowest of the carrying amount and fair value, less the
costs of disposal (Note 38).
1.26. Going concern
As at 31 December 2023, liabilities due within 12
months (EUR 166,616,651) do not exceed assets due
within 12 months (EUR 190,524,288).
1.27. Hyperinflation
The accounts of entities whose economies are
in hyperinflation are translated in accordance
with the standard IAS 29 – Financial reporting in
hyperinflationary economies. Monetary items in the
balance sheet are not restated, as they are already
expressed in the measuring unit current at the
end of the reporting period, unlike non-monetary
items, which are restated in terms of the measuring
unit current at the end of the reporting period.
In accordance with IAS 21 Foreign exchange, as
comparative amounts are translated into the currency
of a non-hyperinflationary economy, they do not need
to be restated.
Sierra Leone
Since October 2023, Sierra Leone is considered
hyperinflationary. IAS 29 is applicable to entities whose
functional currency is the Leone of Sierra Leone (SLL).
The functional currency of the subsidiary located in
Sierra Leone is the US dollar. Consequently, IAS 29
has no incidence on the Group financial statements
in Sierra Leone.
Ghana
Since October 2023, Ghana is considered
hyperinflationary. IAS 29 is applicable to entities whose
functional currency is the Ghanaian Cedi (GHS). The
functional currency of the subsidiary located in Ghana
is the Ghanaian Cedi. Consequently, non-monetary
items of the subsidiary located in Ghana have been
restated in terms of the measuring unit current at
the end of the reporting period (refer to Notes 4, 6
and 7), corresponding to the Ghana Consumer Price
Index (CPI), provided by the Government of Ghana
Statistical Service.
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1.28. Climate effect
The Group considered the potential impact of climate
change, which may affect positively or negatively
the Group’s biological assets, and thus the financial
performance of the Group. Among climate factors,
the distribution of rainfall and sunshine are the most
important ones.
The Group considered climatic events such as severe
wind or fires in the valuation of the biological assets.
However, given current knowledge, distinguishing
the impact of natural climate changes from climate
impact caused by anthropic activity remains difficult.
The Management Board considered various
documentation in its assessment of the impact,
such as the last Intergovernmental Panel on Climate
Change (IPCC) reports but also the data coming
from the agronomic departments which reflect
the potential effect of climate change over the
past years. Budgets are adjusted to integrate the
operational needs that may result of the impact of
those changes and the value in use of the biological
assets is aligned consequently (Note 1.14 and Note
9). From a social stand point, the effect of climate
change are integrated through the regular updates
of the data used for the calculation of the employee
benefit provision (Note 22).
The Management Board will continue to consider the
potential impact of climate change in its assessments,
and will integrate any new potential impact that could
lead to a material change in the Group’s financial
statements.
1.29. Geopolitical uncertainties
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 were
made following military operations initiated by Russia
against Ukraine on 24 February 2022.
On 7 October 2023 Palestinian militant groups led by
Hamas launched a coordinated surprise offensive on
Israel resulting in more than 1,200 deaths, primarily
Israeli citizens. Following this attack, Israel declared
itself in a state of war for the first time since the Yom
Kippur War in 1973.
Due to the geopolitical tensions, since February 2022,
there has been a significant increase in volatility on the
securities and currency markets. The conflicts have
had a significant impact on the financial markets, with
many investors concerned about the risk of further
escalation and the ensuing impact on global trade and
economic growth.
Although the aforementioned aspects have not
significantly impacted the company’s operations nor
performance and going concern during 2023, the
Board of Directors continues to monitor the evolving
situation and its impact on the company’s financial
position and results.
1.30. Environmental, Social and Governance
The Group has described its ambitions and objectives
in terms of environment, social responsibilities and
governance in a separate Sustainability Report that
can be accessed on Socfinaf website.
Management has performed a preliminary assessment
to measure the financial impacts of those objectives
on the consolidated financial statements. Based on
this assessment, Management was able to conclude
that most of the commitments described in the
Sustainability Report have already been incorporated
in the budgets of the subsidiaries of Group. Those
budgets are mainly used for the determination of
internal indicators of impairment but also as a basis for
the determination of the expected growth rates of the
companies. A further description for the assessment of
impairment indicators is provided in Notes 1.14 and 9.
Consolidated financial statements
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Note 2. Subsidiaries and associates
| % Group | % Group | Consolidation | % Group | % Group | Consolidation | |
| Interest | Control | Method (*) | Interest | Control | Method (*) | |
| 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | |
| 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 | 66.38 | 66.38 | FI |
| SOCIETE AFRICAINE FORESTIERE ET AGRICOLE DU CAMEROUN | 69.05 | 69.05 | FI | 69.05 | 69.05 | FI |
| "SAFACAM" S.A. | ||||||
| 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.U. | 100.00 | 100.00 | FI | 100.00 | 100.00 | FI |
| Other activities | ||||||
| BEREBY-FINANCES "BEFIN" S.A. | 87.06 | 87.06 | FI | 87.06 | 87.06 | FI |
| CAMSEEDS S.A. | 67.52 | 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 |
| 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 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
Consolidated financial statements
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List of subsidiaries and associated companies
* AGRIPALMA LDA is a company located on the island of São Tomé
and Principe specialised in the production of palm oil.
* BEREBY-FINANCES “BEFIN” S.A. is a holding company under
Ivorian law that owns the Ivorian companies SOGB S.A. and SCC.
* BRABANTA S.A. is a company under Congolese law specialised in
the production of palm oil.
* CAMSEEDS S.A. is a company under Cameroonian law specialised
in research, development and production of seeds (palm).
* CENTRAGES S.A. is a company under Belgian law providing
administrative and accounting services and owning three floors
of office space in Brussels.
* IMMOBILIERE DE LA PEPINIERE “PEPINIERE” S.A. is a company
under Belgian law owning three floors of office space in Brussels.
* INDUSERVICES S.A. is a company under Luxembourgish law
whose purpose is to provide all administrative services to all
companies and organisations, including all services relating to
documentation, bookkeeping and register services, as well as
all representation, study, consultation activities and assistance.
* INDUSERVICES FR S.A. is a company under Swiss law whose
purpose is to provide all administrative services to all
companies, organisations and companies, including all services
relating to documentation, bookkeeping and register services,
as well as all representation, study, consultation activities and
assistance. In addition, it provides all Group companies with
access to the common IT platform.
* LIBERIAN AGRICULTURAL COMPANY “LAC” is a company under
Liberian law that specialises in the production of rubber.
* OKOMU OIL PALM COMPANY “OKOMU” PLC is a company under
Nigerian law specialised in the production of palm and rubber
products.
* PLANTATIONS SOCFINAF GHANA “PSG” LTD is a company under
Ghanaian law specialised in the production of palm and rubber
products.
* SOCIETE AFRICAINE FORESTIERE ET AGRICOLE DU CAMEROUN
“SAFACAM” S.A. is a company under Cameroonian law active in
the production of palm oil and the cultivation of rubber trees.
* SALALA RUBBER CORPORATION “SRC” is a company under
Liberian law active in the cultivation of rubber trees.
* SOCIETE CAMEROUNAISE DE PALMERAIES “SOCAPALM S.A.” is
active in Cameroon in the production of palm oil and rubber
cultivation.
* SOCFIN AGRICULTURAL COMPANY “SAC” LTD is a company
located in Sierra Leone specialised in the production of palm
oil.
* SOCFIN CONSULTANT SERVICES “SOCFINCO” S.A. is a company
established in Belgium providing technical assistance,
agronomic and financial services.
* SOCFINCO FR S.A. is a Swiss company providing services, studies
and management of agro-industrial plantations.
* SOCIETE ANONYME FORESTIERE AGRICOLE “SAFA” is a company
under French law that holds a stake in a plantation in Cameroon,
Safacam S.A.
* SOCFINDE S.A. is a finance holding company under Luxembourgish
law.
* SOCIETE DES PALMERAIES DE LA FERME SUISSE “SPFS” S.A. is
active in Cameroon in the production, processing and marketing
of palm oil.
* SODIMEX FR S.A. is a company under Swiss law active in the
field of purchase and sale of planting material.
* SOCIETE DES CAOUTCHOUCS DE GRAND-BEREBY “SOGB” S.A. is
a company under Ivorian law specialised in the production of
palm and rubber products.
* SOGESCOL FR S.A. is a Swiss company active in the tropical
products trade.
* STP INVEST S.A. is a company under Belgian law with a stake in
Agripalma LDA.
* SUD COMOE CAOUTCHOUC “SCC” S.A. is a company under Ivorian
law whose activity focuses on the processing and marketing of
rubber.
* TERRASIA S.A. is a company under Luxembourgish law owning
office spaces.
Consolidated financial statements
Socfinaf S.A.
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67
Note 3. Restatement and reclassification
The Group has restated its previously issued consolidated financial statements for the years ended 31 December
2022 and 1 January 2022. The Group has identified a misstatement from prior year. This misstatement has been
considered by restating each of the relevant line items in the prior years’ financial statements.
Certain items in the reported figures relating to prior year have been reclassified for current year presentation purposes.
The following tables summarise the impact of these restatement and reclassification on the Group’s financial
statements.
Consolidated statement of financial position:
| Impact of the | Impact of the | ||||
| restatement | reclassification | ||||
| Previously | |||||
| 01/01/2022 | published | (a) | (b) | (c) | Restated |
| Consolidated reserves | 180,034,759 | -13,616,155 | 166,418,604 | ||
| Translation reserves | -63,481,543 | -130,011 | -63,611,554 | ||
| Profit / (loss) for the period | 72,028,965 | 72,028,965 | |||
| Non-controlling interestsG | 121,205,286 | -7,326,314 | 113,878,972 | ||
| Total Equity | 309,787,467 | -21,072,480 | 0 | 288,714,987 | |
| Deferred tax liabilities | 11,408,890 | 21,072,480 | 32,481,370 | ||
| Long-term debt, net of current portion | 234,679,480 | 5,955,219 | 240,634,699 | ||
| Other payables, non-current | 7,401,155 | -5,955,219 | 1,445,936 | ||
| Short-term debt and current portion of | |||||
| long-term debt | 35,588,183 | 40,403,288 | 75,991,471 | ||
| Other payables, current | 68,876,569 | -40,403,288 | 28,473,281 | ||
| TOTAL EQUITY AND LIABILITIES | 357,954,277 | 21,072,480 | 0 | 379,026,757 |
| Impact of the | Impact of the | ||||
| restatement | reclassification | ||||
| Previously | |||||
| 31/12/2022 | published | (a) | (b) | (c) | Restated |
| Consolidated reserves | 253,235,800 | -13,854,932 | 239,380,868 | ||
| Translation reserves | -71,070,327 | 370,392 | -70,699,935 | ||
| Profit / (loss) for the period | 75,584,548 | -2,398,815 | 73,185,733 | ||
| Non-controlling interestsG | 124,791,747 | -8,045,799 | 116,745,948 | ||
| Total Equity | 382,541,768 | -23,929,154 | 0 | 358,612,614 | |
| Deferred tax liabilities | 9,219,942 | 23,929,155 | 33,149,097 | ||
| Long-term debt, net of current portion | 159,582,281 | 4,354,848 | 163,937,129 | ||
| Other payables, non-current | 6,005,420 | -4,354,848 | 1,650,572 | ||
| Short-term debt and current portion of | |||||
| long-term debt | 43,071,845 | 40,405,480 | 83,477,325 | ||
| Other payables, current | 62,447,969 | -40,405,480 | 22,042,489 | ||
| TOTAL EQUITY AND LIABILITIES | 280,327,457 | 23,929,155 | 0 | 304,256,612 |
Consolidated financial statements
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Socfinaf S.A.
Consolidated income statement and statement of comprehensive income:
| Impact of the | Impact of the | ||||
| restatement | reclassification | ||||
| Previously | |||||
| For the year ended 31 December 2022 | published | (a) | (b) | (c) | Restated |
| Work performed by entity and capitalised | 9,969,880 | -9,969,880 | 0 | ||
| Raw materialsG and consumables used | -182,873,108 | 4,269,395 | -178,603,713 | ||
| Other expenses | -132,268,074 | 4,130,005 | -128,138,069 | ||
| Staff costs | -74,266,738 | 1,490,510 | -72,776,228 | ||
| Other operating expenses | -25,095,805 | 79,970 | -25,015,835 | ||
| Deferred tax (expense) / income | -2,914,673 | -3,613,947 | -6,528,620 | ||
| Profit / (loss) for the period | 109,649,889 | -3,613,947 | 0 | 0 | 106,035,942 |
| Profit / (loss) attributable to non-controlling | |||||
| interestsG | 34,065,341 | -1,215,132 | 32,850,209 | ||
| Profit / (loss) attributable to the owners of | |||||
| the Parent | 75,584,548 | -2,398,814 | 73,185,734 | ||
| Gains / (losses) on exchange differences on | |||||
| translation of subsidiaries | -7,801,046 | 900,491 | -6,900,555 | ||
| Comprehensive income | 103,007,511 | -2,713,456 | 0 | 100,294,055 |
The restatement (a) corresponds to deferred tax liabilities of one of the subsidiaries in Africa (Okomu), that
were understated in prior years.
The reclassification are described below:
(b) Loans from shareholders have been reclassified respectively from other payables (non-current) to long-term
debt, and from other payables (current) to short-term debt;
(c) Work performed by entity and capitalised and related expenses, for several subsidiaries in Africa, have been
offset within income statement, in order to impact the statement of financial position movements only.
Undiluted earnings per share for the year ended 31 December 2022 have also been adjusted. The amount of the
adjustment to undiluted earnings per share is a decrease of EUR 0.14 per share.
Consolidated financial statements
Socfinaf S.A.
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ANNUAL REPORT 2023
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69
Note 4. Leases
The amounts recognised in the balance sheet related to leases are as follows:
* Right-of-use assets
| Land and | ||||
| Furniture, | concessionG of | |||
| vehicles and | agricultural | |||
| EUR | other | Buildings | area | Total |
| Gross value as at 1 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 as at 31 December 2022 | 10,819,535 | 535,523 | 7,582,758 | 18,937,816 |
| Accumulated depreciation as at 1 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 as at 31 December 2022 | -7,798,762 | -465,096 | -2,504,392 | -10,768,250 |
| Net book value as at 31 December 2022 | 3,020,773 | 70,427 | 5,078,366 | 8,169,566 |
| Gross value as at 1 January 2023 | 10,819,535 | 535,523 | 7,582,758 | 18,937,816 |
| Additions | 10,151,459 | 0 | 14,357,096 (*) | 24,508,555 |
| Disposals | -4,402,886 | 0 | 0 | -4,402,886 |
| Hyperinflation | 0 | 0 | 3,213,055 | 3,213,055 |
| Transfer to assets held for sale | 0 | 0 | -185,995 | -185,995 |
| Foreign exchange differences | -3,219,325 | -831 | -391,540 | -3,611,696 |
| Gross value as at 31 December 2023 | 13,348,783 | 534,692 | 24,575,374 | 38,458,849 |
| Accumulated depreciation as at 1 January 2023 | -7,798,762 | -465,096 | -2,504,392 | -10,768,250 |
| Depreciation | -3,641,708 | -31,842 | -559,689 | -4,233,239 |
| Depreciation reversals | 4,402,886 | 0 | 0 | 4,402,886 |
| Transfer to assets held for sale | 0 | 0 | 152,144 | 152,144 |
| Foreign exchange differences | 1,180,354 | 230 | 39,566 | 1,220,150 |
| Accumulated depreciation as at 31 December 2023 | -5,857,230 | -496,708 | -2,872,371 | -9,226,309 |
| Net book value as at 31 December 2023 | 7,491,553 | 37,984 | 21,703,003 | 29,232,540 |
(*) Additions during the period correspond to the revision of the concession price in Cameroon.
Consolidated financial statements
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Socfinaf S.A.
* Lease liabilities
| 31/12/2023 | 31/12/2022 | |
| EUR | EUR | |
| Long-term lease liabilities | 24,950,880 | 8,674,141 |
| Short-term lease liabilities | 2,778,042 | 1,532,064 |
| TOTAL | 27,728,922 | 10,206,205 |
The amounts recognised in the income statement in relation with the lease contracts are detailed as follows:
| 2023 | 2022 | |
| EUR | EUR | |
| Depreciation of right-of-use assets | 4,233,239 | 1,861,776 |
| Expenses related to short-term leases and leases of low-value assets | 2,154,944 | 1,529,868 |
| Interest expense (included in the financial expenses) | 3,411,779 | 1,041,390 |
| TOTAL | 9,799,962 | 4,433,034 |
* Agricultural land and concessions
G
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
G
from the local public authority. These concessions
G
are renewable.
| Company | Date of initial lease or | Duration of the | Area | |
| renewal extension | initial lease | conceded | ||
| SAC | 2011/2012/2013/2014 | 50 years | 18,473 ha | (1) |
| LAC | 1959 | 77 years | 121,407 ha | |
| SRC | 1960 | 70 years | 8,000 ha | (3) |
| SOGB | 1995 | 99 years | 34,712 ha | |
| PSG | 2013/2016/2022 | 50 years | 18,304 ha | |
| OKOMU | 1986/1993/1999//2014 | 92 to 99 years | 33,113 ha | |
| SOCAPALM | 2005 | 55 years | 58,063 ha | |
| SAFACAM | 2022 | 3 years | 2,161 ha | (4) |
| AGRIPALMA | 2009 | 25 years | 1,735 ha | (2)(5) |
| BRABANTA | 2004 to 2022 | 25 years | 8,380 ha |
(1) Renewable concessions
G
for a term of 25 years
(2) Concessions
G
renewable tacitly for periods of 25 years
(3) Extensible concessions
G
up to 40,000 ha
(4) Safacam owns 15,529 ha
(5) Agripalma owns 653 ha
Consolidated financial statements
Socfinaf S.A.
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ANNUAL REPORT 2023
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71
Note 5. Intangible assets
| Other | ||||
| ConcessionsG | intangible | |||
| EUR | and patents | Softwares | assets | TOTAL |
| Cost as at 1 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 as at 31 December 2022 | 1,633,382 | 405,561 | 630,810 | 2,669,753 |
| Accumulated depreciation as at 1 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 as at 31 December 2022 | -245,606 | -405,161 | -569,086 | -1,219,853 |
| Net book value as at 31 December 2022 | 1,387,776 | 400 | 61,724 | 1,449,900 |
| Cost as at 1 January 2023 | 1,633,382 | 405,561 | 630,810 | 2,669,753 |
| Additions | 0 | 15,621 | 0 | 15,621 |
| Disposals | 0 | 0 | -177 | -177 |
| Transfer | 0 | 0 | -35,710 | -35,710 |
| Foreign exchange differences | -489,272 | -21,759 | -13,624 | -524,655 |
| Cost as at 31 December 2023 | 1,144,110 | 399,423 | 581,299 | 2,124,832 |
| Accumulated depreciation as at 1 January 2023 | -245,606 | -405,161 | -569,086 | -1,219,853 |
| Depreciation | -24,459 | -746 | -29,603 | -54,808 |
| Transfer | 0 | 0 | 35,710 | 35,710 |
| Foreign exchange differences | 70,469 | 21,759 | 13,624 | 105,852 |
| Accumulated depreciation as at 31 December 2023 | -199,596 | -384,148 | -549,355 | -1,133,099 |
| Net book value as at 31 December 2023 | 944,514 | 15,275 | 31,944 | 991,733 |
Consolidated financial statements
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Socfinaf S.A.
Note 6. Property, plant and equipment
| Land and | Furniture, | Advances | |||||
| nurseries | Technical | vehicles and | Work in | and prepay- | |||
| EUR | (***) | Buildings | installations | others | progress | ments | TOTAL |
| Cost as at 1 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 as at 31 December 2022 | 9,367,879 | 252,932,179 | 167,690,988 | 221,376,452 | 14,260,711 | 865,583 | 666,493,792 |
| Accumulated depreciation as at 1 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 as at 31 December 2022 | -1,193,432 | -137,332,463 | -77,292,225 | -170,418,829 | 0 | 0 | -386,236,949 |
| Accumulated impairment as at 1 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 as at 31 December 2022 | 0 | -409,129 | -2,131,536 | -182,271 | 0 | 0 | -2,722,936 |
| Net book value as at 31 December 2022 | 8,174,447 | 115,190,587 | 88,267,227 | 50,775,352 | 14,260,711 | 865,583 | 277,533,907 |
| Cost as at 1 January 2023 | 9,367,879 | 252,932,179 | 167,690,988 | 221,376,452 | 14,260,711 | 865,583 | 666,493,792 |
| Additions (*) | 0 | 4,599,712 | 5,234,624 | 13,420,048 | 12,189,105 | 676,214 | 36,119,703 |
| Disposals | 0 | -150,984 | -445,823 | -3,383,491 | -1,487,422 | 0 | -5,467,720 |
| Hyperinflation | 0 | 3,559,352 | 4,626,554 | 1,723,126 | 0 | 0 | 9,909,032 |
| Transfer | -1,482,854 | 10,296,975 | 2,197,008 | 3,184,170 | -14,548,501 | -1,069,328 | -1,422,530 |
| Transfer to assets held for sale | 0 | -5,971,824 | 0 | -1,261,309 | 0 | 0 | -7,233,133 |
| Foreign exchange differences | -2,259,961 | -19,590,147 | -39,010,253 | -14,835,108 | -1,276,793 | -8,376 | -76,980,638 |
| Cost as at 31 December 2023 | 5,625,064 | 245,675,263 | 140,293,098 | 220,223,888 | 9,137,100 | 464,093 | 621,418,506 |
| Accumulated depreciation as at 1 January 2023 | -1,193,432 | -137,332,463 | -77,292,225 | -170,418,829 | 0 | 0 | -386,236,949 |
| Depreciation | -16,518 | -12,150,672 | -8,955,871 | -13,400,168 | 0 | 0 | -34,523,229 |
| Depreciation reversals | 0 | 140,444 | 306,131 | 3,370,914 | 0 | 0 | 3,817,489 |
| Transfer | 19,670 | -61,214 | -393 | 393 | 0 | 0 | -41,544 |
| Transfer to assets held for sale | 0 | 3,631,134 | 0 | 975,370 | 0 | 0 | 4,606,504 |
| Foreign exchange differences | 5,941 | 6,213,514 | 10,482,218 | 9,540,193 | 0 | 0 | 26,241,866 |
| Accumulated depreciation as at 31 December 2023 | -1,184,339 | -139,559,257 | -75,460,140 | -169,932,127 | 0 | 0 | -386,135,863 |
| Accumulated impairment as at 1 January 2023 | 0 | -409,129 | -2,131,536 | -182,271 | 0 | 0 | -2,722,936 |
| Impairment | 0 | -298,687 | 0 | 0 | 0 | 0 | -298,867 |
| Impairment reversals | 0 | 0 | 133,234 | 0 | 0 | 0 | 133,234 |
| Transfer to assets held for sale | 0 | 385,553 | 0 | 0 | 0 | 0 | 385,553 |
| Foreign exchange differences | 0 | 7,968 | 0 | 0 | 0 | 0 | 7,968 |
| Accumulated impairment as at 31 December 2023 | 0 | -314,295 | -1,998,302 | -182,271 | 0 | 0 | -2,494,868 |
| Net book value as at 31 December 2023 | 4,440,725 | 105,801,711 | 62,834,656 | 50,109,490 | 9,137,100 | 464,093 | 232,787,775 |
(*) Additions for the period include capitalised costs.
(**) Impairment test on property, plant and equipment is disclosed in Note 9.
(***) Nurseries have been reclassified in 2023 from property, plant and equipment to biological assets, see Note 7.
As at 31 December 2023, the Group has technical installations and professional equipment pledged as guarantees for borrowings of the
Group for an amount of EUR 4.9 million (2022: EUR 8.1 million). Details of these guarantees are provided in Note 32.
Consolidated financial statements
Socfinaf S.A.
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ANNUAL REPORT 2023
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73
Note 7. Biological assets
| Palm | Rubber | Nurseries and | ||||
| EUR | Mature | Immature | Mature | Immature | Others (***) | Total |
| Cost as at 1 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 as at 31 December 2022 | 363,609,691 | 5,508,065 | 192,975,090 | 38,483,204 | 7,131 | 600,583,181 |
| Accumulated depreciation as at 1 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 as at 31 December 2022 | -132,538,731 | 0 | -60,632,580 | 0 | -3,160 | -193,174,471 |
| Accumulated impairment as at 1 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 as at 31 December 2022 | -23,590,118 | 0 | -30,770,318 | -2,803,518 | 0 | -57,163,954 |
| Net book value as at 31 December 2022 | 207,480,842 | 5,508,065 | 101,572,192 | 35,679,686 | 3,971 | 350,244,756 |
| Cost as at 1 January 2023 | 363,609,691 | 5,508,065 | 192,975,090 | 38,483,204 | 7,131 | 600,583,181 |
| Additions (*) | 0 | 3,490,349 | 0 | 5,634,066 | 521,397 | 9,645,812 |
| Disposals | -934,198 | -386,833 | -2,955,273 | 0 | -769,566 | -5,045,870 |
| Hyperinflation | 3,386,453 | 0 | 1,689,724 | 0 | 0 | 5,076,177 |
| Transfer | 3,546,358 | -3,512,803 | 8,938,826 | -8,765,028 | 1,275,501 | 1,482,854 |
| Transfer to assets held for sale | 0 | 0 | -40,811,858 | -4,002,517 | -71,764 | -44,886,139 |
| Foreign exchange differences | -37,402,896 | -98,312 | -9,850,140 | -2,944,059 | -188,941 | -50,484,348 |
| Cost as at 31 December 2023 | 332,205,408 | 5,000,466 | 149,986,369 | 28,405,666 | 773,758 | 516,371,667 |
| Accumulated depreciation as at 1 January 2023 | -132,538,731 | 0 | -60,632,580 | 0 | -3,160 | -193,174,471 |
| Depreciation | -14,497,818 | 0 | -7,567,771 | 0 | -302 | -22,065,891 |
| Depreciation reversals | 931,881 | 0 | 2,534,073 | 0 | 0 | 3,465,954 |
| Transfer | 889 | 0 | 0 | 0 | -19,670 | -18,781 |
| Transfer to assets held for sale | 0 | 0 | 5,837,046 | 0 | 0 | 5,837,046 |
| Foreign exchange differences | 9,779,930 | 0 | 2,927,522 | 0 | 0 | 12,707,452 |
| Accumulated depreciation as at 31 December 2023 | -136,323,849 | 0 | -56,901,710 | 0 | -23,132 | -193,248,691 |
| Accumulated impairment as at 1 January 2023 | -23,590,118 | 0 | -30,770,318 | -2,803,518 | 0 | -57,163,954 |
| Impairment (**) | 0 | 0 | -6,632,680 | -915,146 | 0 | -7,547,826 |
| Transfer | 0 | 0 | -851,402 | 851,402 | 0 | 0 |
| Transfer to assets held for sale | 0 | 0 | 34,311,388 | 2,768,543 | 0 | 37,079,931 |
| Foreign exchange differences | 2,853,205 | 0 | 1,545,550 | 98,716 | 0 | 4,497,471 |
| Accumulated impairment as at 31 December 2023 | -20,736,913 | 0 | -2,397,462 | -3 | 0 | -23,134,378 |
| Net book value as at 31 December 2023 | 175,144,646 | 5,000,466 | 90,687,197 | 28,405,663 | 750,626 | 299,988,598 |
(*) Additions for the period include capitalised costs.
(**) Impairment test on biological assets is disclosed in Note 9.
(***) Nurseries have been reclassified in 2023 within biological assets.
Accounting policy regarding current biological assets is disclosed in note 1.12.
Consolidated financial statements
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Note 8. Depreciation and impairment
| 2023 | 2022 | |
| EUR | EUR | |
| Depreciation | ||
| Of intangible assets (Note 5) | 54,808 | 54,634 |
| Of property, plant and equipment excluding biological assets (Note 6) | 34,523,229 | 34,197,220 |
| Of biological assets (Note 7) | 22,065,891 | 21,287,485 |
| Of right-of-use assets (Note 4) | 4,233,239 | 1,861,776 |
| Impairment | ||
| Of property, plant and equipment excluding biological assets (Note 5) | 165,452 | 812,607 |
| Of biological assets (Note 6) | 7,547,826 | 0 |
| TOTAL | 68,590,445 | 58,213,722 |
Note 9. Impairment of assets
Goodwill
Impairment tests on goodwill are performed at least
once a year to assess whether the carrying amount is
still appropriate.
Intangible and tangible assets and right-of-use
assets
At each reporting date, the Group reviews the
carrying amount of its intangible and tangible assets
and right-of-use assets in order to assess whether
there is any indication of impairment. If there is such
an indication, the recoverable amount of the asset is
estimated in order to determine the amount of the
impairment loss.
As at 31 December 2023, an impairment loss of
EUR 0.3 million (2022: EUR 0.8 million) and an
impairment reversal for EUR 0.1 million were
recognised on Property, plant and equipment.
Bearer biological assets
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
G
1
st
position on SGX
G
)
and crude palm oil (CIF Rotterdam
G
) was considered as
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 as an impairment
indicator.
As at 31 December 2023, 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 also considers average prices over the six
months before reporting date, and average prices over
the last twelve months, instead of only closing prices.
This is done in order to avoid seasonal fluctuations in
the prices of supply materials.
Moreover, the Group also reviews the prices 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 2023 financial year
does not exceed 15% of the average prices over the past
Consolidated financial statements
Socfinaf S.A.
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ANNUAL REPORT 2023
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75
5 years. For the palm segment, the review of global and
local prices do not show any impairment indicator.
In addition to these external indicators, the Group
considers the following indicators:
- Internal performance indicators;
- Criteria relating to the local market;
- Physical indicators of impairment;
- Significant changes in plantations that could have a
material impact on their future cash flows.
The review of impairment indicators led the Group to
conclude that a sign of impairment exist for SRC.
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, and
for which the Group prepares financial information for
the Board of Directors.
The identification of Cash Generating Units (CGUs)
depends, in particular, on:
- how the Group manages the activities of the entity;
- the way in which decisions are made with regards to
the pursuit or the disposal of its activities and;
- the existence of an active market for all or part of the
production.
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 through the calculation of value in use
by using the most recent information approved by the
local management. Those information comprise the
measures taken that will help to prevent the effects
of the climate change (maintenance program, land
and field preparation against the fire and / or flooding
resulting from heavy rainfalls). The impacts on future
cash-flows of the potential effects of climate changes
are therefore taken into consideration. Then the
Group uses the discounted value of expected net cash
flows, which are discounted at a pre-tax rate. On the
reporting date, the financial projection incorporates
the full exploitation of the younger bearer biological
assets. The operational life
G
ranges from 25 to 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:
- changes in the margins achieved by the entity and
- changes related to discount rates.
This sensitivity analysis is performed whenever an
impairment test is performed after impairment
indicators are identified.
Changes in realised margins
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 through the
surface areas planted on the reporting date as well
as through the actual crop yield recorded during the
financial year. The latter depends on the maturity of
the bearer biological asset. Production is then valued
on an average basis of five-year of the margins that
were 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.
Based on the existence of an impairment indication
and following subsequent impairment tests, the Group
accounted for an impairment loss of EUR 7.5 million
for SRC (Liberia). The remaining amount has been
reclassified within assets held for sale (see also Notes 7
and 38).
As at 31 December 2023, accumulated impairment
losses in the palm business segment amounted
to EUR 7.2 million for Brabanta, EUR 9.2 million
for Agripalma and EUR 4.4 million for SAC. For the
rubber segment, the accumulated impairment losses
are EUR 1.0 million for PSG and EUR 1.4 million for
Safacam (Note 7). No impairment reversal indicators
have been identified during the year.
Consolidated financial statements
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Socfinaf S.A.
Note 10. Non-wholly owned subsidiaries in which non-controlling interests
are significant
Interests of non-controlling interests
G
in the activities of the Group
| Percentage of equity shares | Percentage of voting rights of | ||||
| Subsidiary | Main location | of non-controlling interestG | non-controlling interestsG | ||
| 2023 | 2022 | 2023 | 2022 | ||
| Production of palm oil and rubber | |||||
| SOGB | Côte d'Ivoire | 36% | 36% | 27% | 27% |
| OKOMU | Nigeria | 34% | 34% | 34% | 34% |
| SAFACAM | Cameroon | 31% | 31% | 31% | 31% |
| SOCAPALM | Cameroon | 33% | 33% | 33% | 33% |
| Net income attributed to | |||||
| non-controlling interestsG | |||||
| in the subsidiary during the | Accumulated non-controlling | ||||
| Subsidiary | financial period | interestsG in the subsidiary | |||
| 2023 | 2022 | 2023 | 2022 | ||
| EUR | EUR | EUR | EUR | ||
| SOGB | 1,816,310 | 9,919,771 | 34,428,578 | 40,323,449 | |
| OKOMU (Restated) | 11,532,083 | 12,770,057 | 13,610,634 | 24,085,211 | |
| SAFACAM | -340,054 | 795,546 | 12,682,330 | 14,333,451 | |
| SOCAPALM | 5,833,015 | 5,871,789 | 29,186,471 | 27,876,194 | |
| Subsidiaries that hold non-controlling interestsG that are not significant individually | 10,137,102 | 10,127,641 | |||
| Non-controlling interestsG | 100,045,115 | 116,745,946 | |||
Summary financial information concerning subsidiaries whose interests of non-controlling interests
G
are
significant for the Group excluding intragroup eliminations
| Current | Non-current | Current | Non-current | |
| Subsidiary | assets | assets | liabilities | liabities |
| 2022 | EUR | EUR | EUR | EUR |
| SOGB | 41,259,858 | 98,190,002 | 27,675,941 | 6,768,082 |
| OKOMU (Restated) | 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 |
| 2023 | EUR | EUR | EUR | EUR |
| SOGB | 39,237,673 | 96,453,663 | 35,692,377 | 7,376,308 |
| OKOMU | 23,453,222 | 59,724,716 | 17,910,393 | 24,411,400 |
| SAFACAM | 13,883,373 | 34,456,093 | 11,913,763 | 7,092,036 |
| SOCAPALM | 28,442,311 | 111,898,820 | 31,614,481 | 5,254,925 |
Consolidated financial statements
Socfinaf S.A.
|
ANNUAL REPORT 2023
|
77
| Comprehen- | Dividends | |||
| Revenue from | Net income | sive income | paid to non- | |
| ordinary | for the | for the | controlling | |
| Subsidiary | activities | period | period | interestsG |
| 2022 | EUR | EUR | EUR | EUR |
| SOGB | 143,125,135 | 23,862,820 | 23,862,820 | 5,321,013 |
| OKOMU (Restated) | 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 |
| 2023 | EUR | EUR | EUR | EUR |
| SOGB | 111,971,288 | 8,034,526 | 8,034,526 | 5,480,113 |
| OKOMU | 113,518,676 | 35,264,066 | 35,264,066 | 8,816,146 |
| SAFACAM | 35,943,252 | 933,817 | 933,817 | 1,303,922 |
| SOCAPALM | 129,002,660 | 18,194,012 | 18,194,012 | 5,107,090 |
| Net cash inflows (outflows) | ||||
| Net cash | ||||
| Operating | Investing | Financing | inflows | |
| Subsidiary | activities | activities | activities | (outflows) |
| 2022 | EUR | EUR | EUR | EUR |
| 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 |
| 2023 | EUR | EUR | EUR | EUR |
| SOGB | 30,182,499 | -8,399,725 | -18,023,120 | 3,759,654 |
| OKOMU | 32,367,223 | -11,180,148 | -25,909,506 | -4,722,431 |
| SAFACAM | 5,355,954 | -4,585,446 | -2,522,796 | -1,752,289 |
| SOCAPALM | 35,566,217 | -11,080,808 | -19,192,268 | 5,293,141 |
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.
Consolidated financial statements
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|
Socfinaf S.A.
Note 11. Investments in associates
| 2023 | 2022 | |
| EUR | EUR | |
| Value as at 1 January | 27,288,358 | 23,619,989 |
| Scope exits (Note 2) | 0 | -881,038 |
| Income from associates | 6,002,745 | 11,297,777 |
| Dividends | -8,292,174 | -7,126,982 |
| Share in other comprehensive income from associates | -337,884 | 443,737 |
| Other movements | -161,386 | -65,125 |
| Value as at 31 December | 24,499,660 | 27,288,358 |
| Value of | Value of | |||
| investment in | Income from | investment in | Income from | |
| associates | associates | associates | associates | |
| 31/12/2023 | 2023 | 31/12/2022 | 2022 | |
| EUR | EUR | EUR | EUR | |
| Centrages | 3,346,636 | 79,639 | 3,366,997 | 132,473 |
| Immobilière de la Pépinière | 1,794,038 | -71,861 | 1,866,129 | 1,962 |
| Induservices | 145,837 | 47,547 | 98,291 | 26,434 |
| Induservices FR | 0 | 125,258 | 0 | -108,679 |
| Management Associates | 0 | 0 | 0 | 154,201 |
| Socfinco | 313,853 | -4,683 | 318,537 | -256,646 |
| Socfinco FR | 7,106,126 | 2,558,601 | 8,639,420 | 5,223,770 |
| Socfinde | 1,848,000 | 124,448 | 1,723,552 | 23,464 |
| Sodimex | 0 | 0 | 0 | 389,114 |
| Sodimex FR | 2,116,830 | 342,281 | 2,183,194 | 451,950 |
| Sogescol FR | 7,533,893 | 2,791,818 | 8,807,489 | 5,249,578 |
| Terrasia | 294,446 | 9,698 | 284,748 | 10,156 |
| TOTAL | 24,499,659 | 6,002,746 | 27,288,357 | 11,297,777 |
Consolidated financial statements
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|
79
| Total assets | Revenue | Total assets | Revenue | |
| 31/12/2023 | 2023 | 31/12/2022 | 2022 | |
| EUR | EUR | EUR | EUR | |
| Centrages | 3,973,190 | 3,921,004 | 4,106,686 | 3,880,683 |
| Immobilière de la Pépinière | 3,738,399 | 512,571 | 4,019,267 | 591,134 |
| Induservices | 1,080,076 | 2,240,040 | 815,459 | 2,700,576 |
| Induservices FR | 7,823,488 | 3,651,270 | 6,629,460 | 2,937,282 |
| Socfinco | 1,581,948 | 0 | 1,589,976 | 169 |
| Socfinco FR | 25,146,251 | 26,708,826 | 26,442,122 | 30,292,559 |
| Socfinde | 110,740,705 | 0 | 57,373,319 | 0 |
| Sodimex FR | 8,126,993 | 21,344,372 | 10,279,841 | 21,313,415 |
| Sogescol FR | 47,993,053 | 326,642,221 | 48,532,250 | 411,044,829 |
| Terrasia | 655,210 | 0 | 624,891 | 0 |
| TOTAL | 210,859,313 | 385,020,304 | 160,413,271 | 472,760,647 |
Main data of significant associates accounted for using the equity method
| Dividend | Dividend | |||
| Associate company | Main location | Main activity | received | received |
| 31/12/2023 | 31/12/2022 | |||
| EUR | EUR | |||
| Socfinco | Belgium | Rendering of services | 0 | 200,000 |
| Socfinco FR | Switzerland | Rendering of services | 4,000,000 | 4,000,000 |
| Sodimex FR | Switzerland | Purchase and sale of equipment | 375,000 | 250,000 |
| Sogescol FR | Switzerland | Trade of tropical products | 3,744,267 | 2,730,328 |
| TOTAL | 8,119,267 | 7,180,328 |
Summary financial information of interests held in associates - Statement of financial position
| Non-current | Current | Non-current | ||
| Associate company | Current assets | assets | liabilities | liabilities |
| 31/12/2022 | EUR | EUR | EUR | EUR |
| Centrages | 2,209,820 | 1,896,866 | 728,645 | 0 |
| 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 | 129,807,171 | 16,927,049 | 89,848,956 | 9,764,105 |
Consolidated financial statements
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|
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| 31/12/2023 | EUR | EUR | EUR | EUR |
| Centrages | 2,473,196 | 1,499,994 | 677,627 | 0 |
| Socfinco FR | 19,702,567 | 5,443,685 | 8,691,698 | 3,351,275 |
| Socfinde | 107,749,118 | 2,991,587 | 97,660,026 | 6,412,830 |
| Sodimex FR | 8,104,378 | 22,616 | 3,492,398 | 321,364 |
| Sogescol FR | 44,344,968 | 3,648,084 | 32,518,033 | 397,673 |
| TOTAL | 182,374,227 | 13,605,966 | 143,039,782 | 8,665,344 |
Summary financial information of interests held in associates - Income statement
| Other | Total | |||
| comprehensive | comprehensive | |||
| Profit from | Net income for | income for the | income for the | |
| Associate company | operations | the period | period | period |
| 2022 | EUR | EUR | EUR | EUR |
| Centrages | 223,191 | 223,191 | 0 | 223,191 |
| Socfinco FR | 8,833,675 | 8,833,675 | 51,338 | 8,885,013 |
| Socfinde | 139,836 | 139,836 | 0 | 139,836 |
| Sodimex FR | 905,204 | 905,204 | 90,864 | 996,068 |
| Sogescol FR | 8,459,383 | 8,459,383 | 192,819 | 8,652,202 |
| TOTAL | 18,561,289 | 18,561,289 | 335,022 | 18,896,311 |
| 2023 | EUR | EUR | EUR | EUR |
| Centrages | 117,522 | 117,522 | 0 | 117,522 |
| Socfinco FR | 6,488,998 | 6,488,998 | -91,830 | 6,397,168 |
| Socfinde | 644,758 | 644,758 | 0 | 644,758 |
| Sodimex FR | 609,180 | 609,180 | -33,645 | 575,535 |
| Sogescol FR | 6,193,674 | 6,193,674 | -87,087 | 6,106,587 |
| TOTAL | 14,054,132 | 14,054,132 | -212,563 | 13,841,569 |
Reconciliation of the financial information summarised above to the carrying amount of the investments
in the consolidated financial statements
| Net assets of the | % stake held by | Other IFRS | Value of stake held | |
| Associate company | associate | the Group | adjustments | by the Group |
| 31/12/2022 | EUR | EUR | EUR | |
| Centrages | 3,378,041 | 50% | 1,677,977 | 3,366,997 |
| 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 | 47,121,159 | 2,967,000 | 24,720,652 |
Consolidated financial statements
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|
ANNUAL REPORT 2023
|
81
| 31/12/2023 | EUR | EUR | EUR | |
| Centrages | 3,295,563 | 50% | 1,698,855 | 3,346,636 |
| Socfinco FR | 14,921,077 | 50% | -3,805,484 | 7,106,126 |
| Socfinde | 6,667,849 | 20% | 514,430 | 1,848,000 |
| Sodimex FR | 4,313,232 | 50% | -39,786 | 2,116,830 |
| Sogescol FR | 15,077,346 | 50% | -4,780 | 7,533,893 |
| TOTAL | 44,275,067 | -1,636,765 | 21,951,485 |
There is no goodwill attributed to the above associates.
Aggregated information relating to associates that are not significant individually
| 2023 | 2022 | |
| EUR | EUR | |
| Share of profit from continued operations attributable to the Group | 185,598 | 194,814 |
| Share of other comprehensive income attributable to the Group | -125,259 | 108,679 |
| Share of total comprehensive income attributable to the Group | 60,339 | 303,493 |
| Total book value of investments in associates held by the Group | 2,548,175 | 2,567,706 |
Profit after tax from discontinued operations for 2023
and 2022 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.
Note 12. Financial assets at fair value through other comprehensive income
| 2023 | 2022 | |
| EUR | EUR | |
| Fair value as at 1 January | 300,038 | 38 |
| Additions (*) | 4,500,000 | 0 |
| Transfer | 0 | 300,000 |
| Fair value as at 31 December | 4,800,038 | 300,038 |
(*) Movement in 2023 corresponds to Management Associates capital increase.
| EUR | Cost (historical) | Fair value | ||
| 31/12/2023 | 31/12/2022 | 31/12/2023 | 31/12/2022 | |
| Financial assets at fair value through other | 4,800,038 | 300,038 | 4,800,038 | 300,038 |
| comprehensive income | ||||
Consolidated financial statements
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Socfinaf S.A.
Note 13. Deferred taxes
* Components of deferred tax assets and liabilities
| 2023 | 2022 | |
| Restated | ||
| EUR | EUR | |
| IAS 2 / IAS 41: Agricultural production | -915,418 | -3,466,822 |
| IAS 12: Withholding Tax | -6,235,965 | -3,998,436 |
| IAS 16: Property, plant and equipment (*) | -16,196,712 | -26,596,533 |
| IAS 19: Pension obligations | 2,545,646 | 3,282,072 |
| IAS 21: Translation differences | -1,210,662 | 0 |
| IAS 37: Provisions for risks and charges | 375,811 | 757,296 |
| IAS 38: Formation expenses | 0 | 516,392 |
| IAS 38: Research costs | 360,975 | 337,185 |
| IFRS 9: Financial assets measured at fair value through other | -47,377 | -98,386 |
| comprehensive income | ||
| IFRS 16: Leases | -44,883 | 648,482 |
| IAS 41 : Biological assets | -480,896 | 0 |
| IFRS 3: Fair value of investment property | 0 | -16,580 |
| Others | -83 | -117 |
| Balance as at 31 December | -21,849,564 | -28,635,447 |
| Of which deferred tax assets | 2,735,633 | 4,513,652 |
| Of which deferred tax liabilities | -24,585,197 | -33,149,099 |
(*) Of which EUR -1.1 million relating to hyperinflation (reevaluation of property, plant and equipment).
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.
The Group Socfinaf is within the scope of the OECD Pillar
Two model rules. Pillar Two legislation was enacted or
substantively enacted in certain jurisdictions where
the Group operates to come into effect in January
2024. The Group applies the exception to recognising
and disclosing information about deferred tax assets
and liabilities related to Pillar Two income taxes, as
provided in the amendments to IAS 12 published in
May 2023 and adopted by the EU in November 2023.
Based on preliminary analysis, the Company should
qualify as a “partially-owned parent entity” (POPE)
due to the fact that more than 20% of the ownership
interest in its profit is held, directly or indirectly,
by one or several persons that are not constituent
entities of the Group. As a POPE, the Company should
be subject to IIR based on its allocable share of the
top-up tax (if any) of its low-tax constituent entities.
The Company is controlled by Société Financière des
Caoutchoucs, abbreviated as “Socfin” which is the
largest entity that consolidate, and which should qualify
as the Ultimate Parent Entity (UPE) for Luxembourg
Pillar Two purpose. The UPE, Socfin, would be subject
to IIR but would apply the IIR Offset Mechanism.
However, the Pillar Tow rules were enacted in
Luxembourg close to the reporting date. There are
significant complexities inherent in applying the
legislation and performing the Pillar Two calculations,
therefore the quantitative impact of the Pillar
Two rules is not reasonably estimable at this time.
In addition, quantitative information to indicate
potential exposure to Pillar Two income taxes is not
currently known or reasonably estimable. Therefore,
the Company (in its potential condition as a POPE) is
still in process of assessing the potential exposure (if
any) to Pillar Two income taxes as at 31 December
2023.
The Company will report the potential exposure
in its next Annual Report for the period ending
31 December 2024.
Consolidated financial statements
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* Contingent tax assets and liabilities
Some of the subsidiaries have accumulated tax
losses that are or are not limited over time capital
allowances limited or not over time.
LAC, Brabanta, Agripalma and Camseeds, have unused
tax losses and tax latencies, whose recoverability
is uncertain, amounting to EUR 33.5 million (to use
before 2030), EUR 16.6 million (recoverability not
limited), EUR 7.0 million (to use before 2028) and
EUR 1.6 million (to use before 2025) respectively as at
31 December 2023.
Socfinaf has unused tax losses of EUR 250.4 million
(mainly to use before 2040).
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.
Note 14. Current tax assets and liabilities
* Components of current tax assets
| 2023 | 2022 | |
| EUR | EUR | |
| Current tax assets as at 1 January | 12,438,610 | 13,378,526 |
| Tax income | 1,133,981 | 1,211,151 |
| Other taxes | 9,529,471 | -1,710,668 |
| Taxes paid or recovered | -263,201 | 2,333,362 |
| Transfer (*) | -12,782,933 | -3,022,879 |
| Transfer to assets held for sale | -299,780 | 0 |
| Foreign exchange differences | -207,054 | 249,118 |
| Current tax assets as at 31 December | 9,549,094 | 12,438,610 |
(*) Corresponds mainly to offset of tax assets and tax liabilities.
* Components of current tax liabilities
| 2023 | 2022 | |
| EUR | EUR | |
| Current tax liabilities as at 1 January | 40,651,438 | 30,408,824 |
| Tax expense | 31,897,496 | 37,157,521 |
| Other taxes (*) | 38,366,780 | 23,208,381 |
| Taxes paid or recovered | -58,507,765 | -48,988,859 |
| Transfer (**) | -13,881,093 | -1,177,818 |
| Foreign exchange differences | -9,825,719 | 43,389 |
| Current tax liabilities as at 31 December | 28,701,137 | 40,651,438 |
(*) Other taxes are composed of taxes not included in general tax expenses: VAT, withholding tax, custom tax,...
(**) Corresponds mainly to offset of tax assets and tax liabilities.
Consolidated financial statements
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Note 15. Income tax expense
* Components of the tax expense
| 2023 | 2022 | |
| Restated | ||
| EUR | EUR | |
| Income tax expense (*) | 36,557,147 | 39,796,406 |
| Deferred tax expense / (income) | 4,971,264 | 6,528,621 |
| Tax expense as at 31 December | 41,528,411 | 46,325,027 |
(*) Withholding tax on dividends is presented within income tax expense.
* Components of the deferred tax (expense) / income
| 2023 | 2022 | |
| Restated | ||
| EUR | EUR | |
| IAS 19: Pension obligations | 1,553,831 | -1,450,766 |
| IAS 38: Intangible assets | 484,856 | -13,828 |
| IAS 2 / IAS 41: Fair value of agricultural produce | -2,143,595 | 1,420,836 |
| IFRS 9: Fair value | 0 | 44,201 |
| IAS 12: Income Tax (*) | 2,523,222 | 1,674,170 |
| IAS 16: Tangible assets | 539,398 | 5,280,573 |
| IAS 37: Provisions for risks and charges | 25,932 | -510,998 |
| IAS 21: Foreign exchange differences | 1,819,832 | -40,261 |
| IFRS 16: Leases | 286,364 | -37,374 |
| Others | 0 | 162,066 |
| Deferred tax expense / (income) as at 31 December | 4,971,264 | 6,528,619 |
(*) Of which impact of tax latencies activated for EUR 3.5 million, and withholding tax for EUR -0.7 million.
* Reconciliation between income statement and cash flow statement
| 2023 | 2022 | |
| EUR | EUR | |
| Income tax expense paid during the period | -36,557,147 | -39,796,406 |
| Income tax movement on financial position | 1,401,592 | 0 |
| Income tax paid | -35,155,555 | -39,796,406 |
Consolidated financial statements
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* Reconciliation of income tax expense
| 2023 | 2022 | |
| Restated | ||
| EUR | EUR | |
| Profit before tax from continuing operations | 84,850,434 | 141,063,191 |
| Nominal tax rate of the parent company | 24.94% | 24.94% |
| Nominal tax rate of subsidiaries | from 0% to 33% | from 1% to 33% |
| Income tax at nominal tax rates of subsidiaries | 18,981,308 | 33,020,896 |
| Unfunded taxes | 0 | 61,922 |
| Definitively taxed income | 2,843,271 | 2,222,265 |
| Use unrecognised of capital allowances | -192,116 | -858,604 |
| Specific tax regimes in foreign countries | 7,215,176 | 6,763,922 |
| Non-taxable income | -5,601,483 | -1,962,465 |
| Non-deductible expenses | 6,629,405 | 3,975,975 |
| Use of unrecognised accumulated tax losses | -1,410,695 | -1,125,940 |
| Unrecognised losses carried forward | 8,294,995 | 4,104,175 |
| Other tax benefits | -10,671 | -40,956 |
| Additional tax assessment | 232,357 | 35,862 |
| Impact of change in tax rate | 4,552,406 | 113,723 |
| Other adjustments | -5,542 | 14,252 |
| Tax expense as at 31 December | 41,528,411 | 46,325,027 |
* Change of rate for the subsidiaries
In 2023, following changes at local level, income tax rates for SAC and PSG have been updated respectively to
0% (15% in 2022) and 7.5% (1% in 2022).
Note 16. Inventories
* Carrying value of inventories by category
| 31/12/2023 | 31/12/2022 | |
| EUR | EUR | |
| Raw materialsG | 24,638,464 | 33,610,606 |
| Consumables | 16,850,225 | 22,944,186 |
| Spare parts | 30,663,090 | 32,159,246 |
| Production in progress | 858,179 | 635,495 |
| Finished products | 17,728,911 | 17,412,198 |
| Down-payments and orders in progress | 2,945,178 | 4,400,098 |
| Gross amount (before impairment) as at 31 December | 93,684,047 | 111,161,829 |
| Inventory write-downs | -4,947,343 | -5,392,015 |
| Net amount as at 31 December | 88,736,704 | 105,769,814 |
Consolidated financial statements
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* Reconciliation of inventories
| 2023 | 2022 | |
| EUR | EUR | |
| Situation as at 1 January | 111,161,829 | 96,902,172 |
| Change in inventory | 5,770,503 | 8,994,376 |
| Fair value of agricultural products | -9,522,251 | 5,115,356 |
| Transfer to assets held for sale | -956,711 | 0 |
| Foreign exchange differences | -12,769,323 | 149,925 |
| Gross amount (before impairment) as at 31 December | 93,684,047 | 111,161,829 |
| Inventory write-downs | -4,947,343 | -5,392,015 |
| Net amount as at 31 December | 88,736,704 | 105,769,814 |
* Quantity of inventory by category
| Production-in- | |||
| 31/12/2022 | Raw materialsG | progressG | Finished goodsG |
| Crude Palm OilG / Palm Kernel Oil (tons) | 667 | 0 | 6,079 |
| Rubber (tons) | 33,460 | 0 | 9,931 |
| Others (units) | 0 | 0 | 2,150,187 |
| Production-in- | |||
| 31/12/2023 | Raw materialsG | progressG | Finished goodsG |
| Crude Palm OilG / Palm Kernel Oil (tons) | 0 | 0 | 10,843 |
| Rubber (tons) | 33,065 | 0 | 9,799 |
| Others (units) | 0 | 0 | 2,386,647 |
Note 17. Trade receivables (current assets)
| 31/12/2023 | 31/12/2022 | |
| EUR | EUR | |
| Trade receivables | 22,784,333 | 19,073,838 |
| Advances and prepayments | 4,451,502 | 4,445,384 |
| TOTAL | 27,235,835 | 23,519,222 |
The accounting and risk management policies related to receivables are detailed in Notes 1 and 34.
The Group performed ECL analysis on trade receivables during the year. Following this analysis, the Group did
not identify any impairment to book.
Consolidated financial statements
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Note 18. Other receivables (current assets)
| 31/12/2023 | 31/12/2022 | |
| EUR | EUR | |
| Social security | 1,247,379 | 1,017,195 |
| Other receivables (*) | 21,252,251 | 19,953,623 |
| Accrued charges | 631,589 | 470,178 |
| TOTAL | 23,131,219 | 21,440,996 |
(*) Other receivables include receivables linked to non-operational activities and a receivable of EUR 15.9 million
(EUR 14.3 million in 2022) relating to the cash pooling at the level of Socfinaf and its subisidiaries.
Note 19. Cash and cash equivalents
* Reconciliation with the amounts in the financial statements
| 2023 | 2022 | |
| EUR | EUR | |
| Current account | 39,741,654 | 63,638,033 |
| TOTAL | 39,741,654 | 63,638,033 |
* Reconciliation with the cash flow statement
| 2023 | 2022 | |
| EUR | EUR | |
| Current account | 39,741,654 | 63,638,033 |
| Bank overdrafts (*) | -3,470,366 | -10,695,901 |
| TOTAL | 36,271,288 | 52,942,132 |
(*) See also Note 23.
Consolidated financial statements
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Note 20. Share capital and share premium
Issued and fully paid capital amounted to
EUR 35.7 million as at 31 December 2023 (stable
compared to 2022). There is a share premium of
EUR 87.5 million added to the issued capital.
As at 31 December 2023, the share capital is
represented by 17,836,650 shares with no designation
of par value.
| Ordinary shares | ||
| 31/12/2023 | 31/12/2022 | |
| Number of shares as at 31 December | 17,836,650 | 17,836,650 |
| Number of fully paid shares issued without designation of par value | 17,836,650 | 17,836,650 |
Note 21. Legal reserves
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.
Consolidated financial statements
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Note 22. Pension obligations
* Defined benefit pension plan and post-employment sickness
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.
| 2023 | 2022 | |||||
| EUR | EUR | |||||
| Fair value of | Fair value of | |||||
| the defined | the defined | |||||
| Present value | benefit plan | Net amount | Present value | benefit plan | Net amount | |
| of obligations | assets | recognised | of obligations | assets | recognised | |
| Assets and liabilities recognised in the | ||||||
| statement of financial position | ||||||
| Present value of obligations | 13,932,928 | -1,431,667 | 12,501,261 | 13,689,169 | -1,322,634 | 12,366,535 |
| Net amount recognised in the statement of | 13,932,928 | -1,431,667 | 12,501,261 | 13,689,169 | -1,322,634 | 12,366,535 |
| financial position for defined benefit plans | ||||||
| Components of net charge | ||||||
| Current service costs | 716,745 | 0 | 716,745 | 855,755 | 0 | 855,755 |
| Financial costs | 1,047,943 | 23,504 | 1,071,447 | 1,061,814 | 23,422 | 1,085,236 |
| Interest income on plan assets | 0 | -170,158 | -170,158 | 0 | -116,216 | -116,216 |
| Early retirement, reductions, liquidations | -5,875 | 0 | -5,875 | 0 | 0 | 0 |
| Past service costs | 300,283 | 0 | 300,283 | 0 | 0 | 0 |
| Defined benefit plan costs | 2,059,096 | -146,654 | 1,912,442 | 1,917,569 | -92,794 | 1,824,775 |
| Movements in liabilities / net assets recognised | ||||||
| in the statement of financial position | ||||||
| As at 1 January | 13,689,168 | -1,322,634 | 12,366,534 | 13,768,201 | -1,713,679 | 12,054,522 |
| Costs as per income statement | 2,059,096 | -146,654 | 1,912,442 | 1,917,569 | -92,794 | 1,824,775 |
| Contributions by employer | -699,064 | -671,544 | -1,370,608 | -900,012 | -669,194 | -1,569,206 |
| Costs of services rendered | -179,306 | 179,306 | 0 | -223,676 | 223,676 | 0 |
| Actuarial gains and losses of the year recognised | 1,387,967 | 80,332 | 1,468,299 | -954,436 | 51,880 | -902,556 |
| in other comprehensive income | ||||||
| Reclassification of net asset | 0 | 449,526 | 449,526 | 0 | 877,478 | 877,478 |
| Foreign exchange differences | -2,324,932 | 0 | -2,324,932 | 81,522 | 0 | 81,522 |
| As at 31 December | 13,932,928 | -1,431,667 | 12,501,261 | 13,689,168 | -1,322,634 | 12,366,534 |
Provisions are based on actuarial valuation reports prepared in January 2024.
Consolidated financial statements
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* Actuarial gains and losses recognised in other comprehensive income
| 2023 | 2022 | |||||
| EUR | EUR | |||||
| Fair value of | Fair value of | |||||
| the defined | the defined | |||||
| Present value | benefit plan | Net amount | Present value | benefit plan | Net amount | |
| of obligations | assets | recognised | of obligations | assets | recognised | |
| Adjustments of liabilities related to experience | -912,093 | 0 | -912,093 | -269,868 | 0 | -269,868 |
| Changes in financial assumptions related to | 171,518 | 0 | 171,518 | 1,445,002 | 0 | 1,445,002 |
| recognised liabilities | ||||||
| Changes in demographic assumptions related to | -647,390 | 0 | -647,390 | -220,698 | 0 | -220,698 |
| recognised liabilities | ||||||
| Return on assets in the plan excl. interest income | 0 | -80,332 | -80,332 | 0 | -51,880 | -51,880 |
| Actuarial gains and losses recognised during | -1,387,965 | -80,332 | -1,468,297 | 954,436 | -51,880 | 902,556 |
| the period in other comprehensive income |
* Actuarial valuation assumptions
| 2023 | 2022 | |
| AFRICA | ||
| Average discount rate | from 5.42% to 17.11% | from 4.93% to 18.48% |
| Expected long-term returns of plan assets | 229,001 | 170,158 |
| Future salary increases | from 1.74% to 10.70% | from 1.74% to 12% |
| Average remaining active life of employees (in years) | 19.06 | 19.34 |
* Sensitivity analysis of the present value of defined benefit obligations
| 2023 | 2022 | |
| EUR | EUR | |
| Actuarial value of the obligation | ||
| - Pension plan | 13,932,928 | 13,689,169 |
| - Fair value of plan assets | -1,431,667 | -1,322,634 |
| Total as at 31 December | 12,501,261 | 12,366,535 |
| Actuarial rate (on pension plan) | ||
| Increase of 0.5% | 13,515,787 | 13,285,487 |
| Decrease of 0.5% | 14,375,266 | 14,093,019 |
| Expected future salary increases (on pension plan) | ||
| Increase of 0.5% | 14,360,688 | 14,067,916 |
| Decrease of 0.5% | 13,526,805 | 13,306,104 |
The sensitivity analysis is based on the same actuarial method used to measure the obligations of the defined benefit plans. The
mortality rate which can be impacted by the effect of the climate change is included in this sensitivity analysis.
Consolidated financial statements
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* Impact of the defined benefit pension plan on future cash flows
| 2024 | 2023 | |
| Estimated contributions for the next financial year (in euros) | 1,812,594 | 1,810,894 |
| 2023 | 2022 | |
| Weighted average duration of defined benefit plan obligations (in years) | 6.1 | 6.2 |
* Pension scheme with defined benefit obligations
| 2023 | 2022 | |
| EUR | EUR | |
| Accounted expense for the defined contribution pension plan | 1,005,730 | 1,049,949 |
Note 23. Financial debts
| 31/12/2022 | |||
| TOTAL | |||
| EUR | < 1 year | > 1 year | Restated |
| 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 (*) | 55,908,831 | 129,331,004 | 185,239,835 |
| Bank overdrafts (**) | 10,695,901 | 0 | 10,695,901 |
| TOTAL | 85,009,389 | 172,611,270 | 257,620,659 |
| 31/12/2023 | |||
| EUR | < 1 year | > 1 year | TOTAL |
| Loans held by financial institutions | 13,137,581 | 17,357,744 | 30,495,325 |
| Lease liabilities | 2,778,042 | 24,950,880 | 27,728,922 |
| Other loans (*) | 47,495,679 | 85,420,573 | 132,916,252 |
| Bank overdrafts (**) | 3,470,366 | 0 | 3,470,366 |
| TOTAL | 66,881,668 | 127,729,197 | 194,610,865 |
(*) This balance includes an amount of EUR 120.0 million payable to Socfin and shareholders by Socfinaf (2022: EUR 174.9 million).
See note 31.
(**) See also Note 19.
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 5.50% and 7.09%.
As explained in Note 34, interest rate management is the subject of ongoing management attention.
The Group is in compliance with covenants related to amounts owed to credit institutions.
Consolidated financial statements
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* Long-term debt analysis by interest rate
| 31/12/2022 | |||||
| TOTAL | |||||
| EUR | Fixed Rate | Rate | Floating rate | Rate | Restated |
| 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 | 9,331,005 | 0% to 3.00% | 0 | - | 9,331,005 |
| 129,331,005 | 0 | 129,331,005 | |||
| TOTAL | 163,937,129 | 0 | 163,937,129 |
| 31/12/2023 | |||||
| EUR | Fixed Rate | Rate | Floating rate | Rate | TOTAL |
| Loans held by financial institutions | |||||
| Côte d'Ivoire | 175,639 | 5.50% | 0 | - | 175,639 |
| Nigeria | 7,240,279 | 5.00% to 10.00% | 0 | - | 7,240,279 |
| Cameroon | 8,316,825 | 5.70% to 7.09% | 0 | - | 8,316,825 |
| Ghana | 1,625,000 | 4.00% | 0 | - | 1,625,000 |
| 17,357,743 | 0 | 17,357,743 | |||
| Other loans | |||||
| Europe | 80,000,000 | 6.00% to 6.25% | 0 | - | 80,000,000 |
| Sierra Leone | 5,420,573 | 0% to 3.00% | 0 | - | 5,420,573 |
| 85,420,573 | 0 | 85,420,573 | |||
| TOTAL | 102,778,316 | 0 | 102,778,316 |
Consolidated financial statements
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* Long-term debt analysis by currency
| TOTAL EUR | ||||||||
| 31/12/2022 | EUR | CFA | NGN | STN | USD | GHS | CDF | Restated |
| 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 | 9,331,004 | 0 | 0 | 129,331,004 |
| Lease liabilities | 0 | 6,901,010 | 65,318 | 268,436 | 1,364,985 | 35,690 | 38,702 | 8,674,141 |
| TOTAL | 124,874,999 | 17,735,232 | 17,262,628 | 268,436 | 12,395,581 | 35,690 | 38,702 | 172,611,268 |
| 31/12/2023 | EUR | CFA | NGN | STN | USD | GHS | CDF | TOTAL EUR |
| Loans held by financial institutions | 1,625,000 | 8,492,464 | 7,240,279 | 0 | 0 | 0 | 0 | 17,357,743 |
| Other loans | 80,000,000 | 0 | 0 | 0 | 5,420,573 | 0 | 0 | 85,420,573 |
| Lease liabilities | 0 | 20,289,243 | 3,236,272 | 112,602 | 1,260,191 | 25,509 | 27,063 | 24,950,880 |
| TOTAL | 81,625,000 | 28,781,707 | 10,476,551 | 112,602 | 6,680,764 | 25,509 | 27,063 | 127,729,196 |
* Long-term debt analysis by maturity
| 31/12/2022 | ||||||
| TOTAL | ||||||
| EUR | 2024 | 2025 | 2026 | 2027 | 2028 and above | Restated |
| 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 | 9,331,004 | 144,631,004 |
| TOTAL | 20,209,839 | 13,408,647 | 129,918,042 | 4,024,079 | 20,350,663 | 187,911,270 |
(*) Those amounts correspond to the interests and capital to be repaid on the EUR 120 million long-term loan, disclosed in Note 31.
| 31/12/2023 | ||||||
| EUR | 2025 | 2026 | 2027 | 2028 | 2029 and above | TOTAL |
| Loans held by financial institutions | 8,362,989 | 4,773,585 | 4,061,408 | 2,685,043 | 1,051,182 | 20,934,207 |
| Lease liabilities | 2,332,498 | 1,812,884 | 1,534,512 | 121,920 | 19,149,066 | 24,950,880 |
| Other loans | 6,937,466 (*) | 85,000,000 (*) | 0 | 0 | 3,487,181 | 95,424,647 |
| TOTAL | 17,632,952 | 91,586,469 | 5,595,920 | 2,806,963 | 23,687,429 | 141,309,733 |
(*) Those amounts correspond to the interests and capital to be repaid on the EUR 80 million long-term loan, disclosed in Note 31.
* Short-term debt analysis
The short-term debts are mainly composed of the shareholder advances with Bolloré and Mopoli. The detail of the interest rates,
currency and maturity are disclosed in Note 31 Information on related party.
Consolidated financial statements
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* Net cash surplus / (net debt)
| 31/12/2023 | 31/12/2022 | |
| Restated | ||
| EUR | EUR | |
| Cash and cash equivalents | 39,741,654 | 63,638,033 |
| Long-term debt net of current portion | -102,778,317 | -163,937,128 |
| Short-term debt and current portion of long-term debt | -64,103,627 | -83,477,324 |
| Lease liabilities | -27,728,922 | -10,206,207 |
| Net debt | -154,869,212 | -193,982,626 |
| Cash and cash equivalents | 39,741,654 | 63,638,033 |
| Loan bearing interest at a fixed rate | -166,881,944 | -232,802,668 |
| Loan bearing interest at a variable rate | 0 | -14,611,784 |
| Lease liabilities | -27,728,922 | -10,206,207 |
| Net debt | -154,869,212 | -193,982,626 |
* Reconciliation of net cash surplus / (net debt)
| Short-term debt | |||||
| Long-term debt, | and current | ||||
| Cash and cash | net of current | portion of long- | Debt related to | ||
| equivalents | portion | term debt | leases | TOTAL | |
| As at 1 January 2022 - Restated | 63,091,770 | -240,634,695 | -75,991,474 | -9,390,392 | -262,924,791 |
| Cash flows | 992,576 | 66,189,365 | 21,018,464 | 1,737,556 | 89,937,961 |
| Foreign exchange differences | -446,314 | 1,409,412 | 1,020,847 | -78,293 | 1,905,652 |
| Transfers | 0 | 19,178,526 | -29,525,164 | 0 | -10,346,639 |
| Other movements with no impact on cash flows | 0 | -10,079,732 | 0 | -2,475,073 | -12,554,805 |
| As at 31 December 2022 - Restated | 63,638,032 | -163,937,124 | -83,477,327 | -10,206,202 | -193,982,622 |
| Cash flows | -14,319,139 | 37,988,001 | 31,318,102 (*) | 4,623,622 | 59,610,586 |
| Foreign exchange differences | -9,216,071 | 9,990,476 | 138,407 | 2,274,529 | 3,187,341 |
| Transfers | 0 | 13,180,334 | -12,082,811 | 0 | 1,097,523 |
| Transfer to assets held for sale | -361,169 | 0 | 0 | 45,866 | -315,303 |
| Other movements with no impact on cash flows | 0 | 0 | 0 | -24,466,733 | -24,466,733 |
| As at 31 December 2023 | 39,741,653 | -102,778,313 | -64,103,629 | -27,728,918 | -154,869,208 |
(*) Of which EUR 7.2 million relating to movements on bank overdrafts and EUR 24.1 million relating to repayment of borrowings.
Consolidated financial statements
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Note 24. Trade and other payables
| 31/12/2023 | 31/12/2022 | |
| Restated | ||
| EUR | EUR | |
| Non-current other payables | 1,332,110 | 1,650,572 |
| Trade creditors: suppliers | 35,295,036 | 42,111,681 |
| Advances received and invoices to be received | 11,102,007 | 8,074,757 |
| Subtotal trade payables | 46,397,043 | 50,186,438 |
| Staff cost liabilities | 6,110,763 | 5,102,003 |
| Other payables (*) | 11,555,848 | 7,773,177 |
| Accruals (**) | 6,372,256 | 9,167,312 |
| Subtotal current other payables | 24,038,867 | 22,042,492 |
| TOTAL | 71,768,020 | 73,879,502 |
| Non-current liabilities | 1,332,110 | 1,650,572 |
| Current liabilities | 70,435,910 | 72,228,930 |
(*) Other payables include cash pooling at the level of Socfinaf for EUR 0 million (EUR 0.3 million in 2022). See also Note 31.
(**) This amount includes the Okomu grant part of the loans, for EUR 2.2 million (2022: EUR 6.2 million).
Consolidated financial statements
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Note 25. Financial instruments
| Financial | ||||||
| assets at | ||||||
| fair value | ||||||
| through other | Other financial | Other financial | ||||
| 31/12/2022 | Loans and | comprehensive | assets and | Loans and | assets and | |
| Restated | borrowings | income | liabilities | TOTAL | borrowings (*) | liabilities (*) |
| EUR | At cost | At fair value | At cost | At fair value | At fair value | |
| Assets | ||||||
| Financial assets at fair value through other | 0 | 300,038 | 0 | 300,038 | 0 | 0 |
| comprehensive income | ||||||
| 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 (**) | 163,937,128 | 0 | 0 | 163,937,128 | 159,078,419 | 0 |
| Other non-current liabilities | 0 | 0 | 1,650,572 | 1,650,572 | 0 | 1,650,572 |
| Short-term debts (**) | 72,781,424 | 0 | 10,695,900 | 83,477,324 | 72,781,424 | 10,695,900 |
| Trade payables (current) | 0 | 0 | 50,186,438 | 50,186,438 | 0 | 50,186,438 |
| Other payables (current) (**) | 0 | 0 | 22,042,491 | 22,042,491 | 0 | 22,042,491 |
| Total liabilities | 236,718,552 | 0 | 84,575,401 | 321,293,953 | 231,859,843 | 84,575,401 |
(*) For information purposes.
(**) See note 23.
| 31/12/2022 | Fair Value | |||
| EUR | Level 1 | Level 2 | Level 3 | TOTAL |
| Financial assets at fair value through other | 0 | 0 | 300,038 | 300,038 |
| comprehensive income | ||||
Consolidated financial statements
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| Financial | ||||||
| assets at | ||||||
| fair value | ||||||
| through | Other | Other | ||||
| other com- | financial | Loans and | financial | |||
| Loans and | prehensive | assets and | borrowings | assets and | ||
| 31/12/2023 | borrowings | income | liabilities | TOTAL | (*) | liabilities (*) |
| EUR | At cost | At fair value | At cost | At fair value | At fair value | |
| Assets | ||||||
| Financial assets at fair value through other comprehensive | 0 | 4,800,038 | 0 | 4,800,038 | 0 | 0 |
| income | ||||||
| Long-term advances | 1,502,170 | 0 | 513,733 | 2,015,903 | 1,502,170 | 513,733 |
| Other non-current assets | 0 | 0 | 3,089,715 | 3,089,715 | 0 | 3,089,715 |
| Trade receivables | 0 | 0 | 27,235,836 | 27,235,836 | 0 | 27,235,836 |
| Other receivables | 0 | 0 | 23,131,220 | 23,131,220 | 0 | 23,131,220 |
| Cash and cash equivalents (**) | 0 | 0 | 39,741,654 | 39,741,654 | 0 | 39,741,654 |
| Total assets | 1,502,170 | 4,800,038 | 93,712,158 | 100,014,366 | 1,502,170 | 93,712,158 |
| Liabilities | ||||||
| Long-term debts (**) | 102,778,317 | 0 | 0 | 102,778,317 | 100,229,159 | 0 |
| Other non-current liabilities (***) | 0 | 0 | 1,332,110 | 1,332,110 | 0 | 1,332,110 |
| Short-term debts (**) | 60,633,260 | 0 | 3,470,367 | 64,103,627 | 60,633,260 | 3,470,367 |
| Trade payables (current) (***) | 0 | 0 | 46,397,043 | 46,397,043 | 0 | 46,397,043 |
| Other payables (current) (***) | 0 | 0 | 24,038,868 | 24,038,868 | 0 | 24,038,868 |
| Total Liabilities | 163,411,577 | 0 | 75,238,388 | 238,649,965 | 160,862,419 | 75,238,388 |
(*) For information purposes.
(**) See note 23.
(***) See Note 24.
| 31/12/2023 | Fair Value | |||
| EUR | Level 1 | Level 2 | Level 3 | TOTAL |
| Financial assets at fair value through other | 0 | 0 | 4,800,038 | 4,800,038 |
| comprehensive income | ||||
The Group estimated the fair value of the financial instruments by comparing their interest rates to the actual interest rate as at year-end,
provided by the European Central Bank. In case of material differences between the interest rates, the estimated fair value of the financial
instruments is disclosed in this note.
Consolidated financial statements
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Note 26. Staff costs and average number of staff
| 2023 | 2022 | |
| Restated | ||
| Staff costs | EUR | EUR |
| Remuneration | 69,702,788 | 65,739,733 |
| Social security and pension expenses | 9,207,095 | 7,036,495 |
| TOTAL | 78,909,883 | 72,776,228 |
| Average number of employees | 2023 | 2022 |
| Directors | 118 | 106 |
| Employees | 5,126 | 4,534 |
| Workers (including temporary workers) | 18,696 | 20,813 |
| TOTAL | 23,940 | 25,453 |
Note 27. Other financial income
| 2023 | 2022 | |
| EUR | EUR | |
| Interest from receivables and cash and cash equivalents | 419,665 | 346,457 |
| Exchange gains | 22,174,456 | 8,040,379 |
| Others | 258,206 | 267,079 |
| TOTAL | 22,852,327 | 8,653,915 |
Note 28. Financial expenses
| 2023 | 2022 | |
| EUR | EUR | |
| Interest and finance expense | 11,245,986 | 14,896,038 |
| Interest expenses on lease liabilities | 3,411,779 | 1,041,390 |
| Exchange losses | 26,848,781 | 24,584,287 |
| Others | 1,516,828 | 641,659 |
| TOTAL | 43,023,374 | 41,163,374 |
Consolidated financial statements
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Note 29. Net earnings per share
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.
| 2023 | 2022 | |
| Restated | ||
| Net profit / (loss) for the period (in euros) | 28,248,339 | 73,185,734 |
| Average number of shares | 17,836,650 | 17,836,650 |
| Net earnings per share undiluted (in euros) | 1.58 | 4.10 |
Note 30. Dividends and Directors’ fees
The Board will propose to the Annual General Meeting of 29 May 2024 not to pay any dividend.
| 2023 | 2022 | |
| Dividends and interim dividends distributed during the period | 0 | 0 |
| Number of shares | 17,836,650 | 17,836,650 |
| Dividend per share paid during the period |
Consolidated financial statements
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Note 31. Information on related party
* Directors’ remuneration
| 2023 | 2022 | |
| EUR | EUR | |
| Short-term benefits | 488,730 | 356,995 |
* Other related party transactions
| 31/12/2022 | ||||
| Other related | TOTAL | |||
| EUR | Parent | Associates | parties | Restated |
| 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 18) | 0 | 15,122,089 | 7,464 | 15,129,553 |
| 0 | 29,834,117 | 7,464 | 29,841,581 | |
| Non-current liabilities | ||||
| Financial debts (Note 23) | 120,000,000 | 4,976,156 | 4,284,667 | 129,260,823 |
| 120,000,000 | 4,976,156 | 4,284,667 | 129,260,823 | |
| Current liabilities | ||||
| Financial debts (Note 23) | 14,611,491 | 292 | 40,405,480 | 55,017,263 |
| Trade payables | 0 | 15,503,605 | 71,063 | 15,574,668 |
| Other payables (Note 24) | 0 | 3,159,945 | 660 | 3,160,605 |
| 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 |
Consolidated financial statements
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| 31/12/2023 | ||||
| Other related | ||||
| EUR | Parent | Associates | 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 | 18,248,109 | 0 | 18,248,109 |
| Other receivables (Note 18) | 0 | 16,003,218 | 14,339 | 16,017,557 |
| 0 | 34,251,327 | 14,339 | 34,265,666 | |
| Non-current liabilities | ||||
| Financial debts (Note 23) | 80,000,000 | 3,395,056 | 3,487,181 | 86,882,237 |
| 80,000,000 | 3,395,056 | 3,487,181 | 86,882,237 | |
| Current liabilities | ||||
| Financial debts (Note 23) | 0 | 0 | 40,705,753 | 40,705,753 |
| Trade payables | 0 | 16,879,628 | 6,031 | 16,885,659 |
| Other payables (Note 24) | 1,250,000 | 3,912,871 | 660 | 5,163,531 |
| 1,250,000 | 20,792,499 | 40,712,444 | 62,754,943 | |
| Income statement | ||||
| Services and goods delivered | 0 | 198,623,366 | 0 | 198,623,366 |
| Services and goods received | 0 | 44,144,608 | 658,211 | 44,802,819 |
| Financial income | 0 | 254,618 | 0 | 254,618 |
| Financial expenses | 5,786,549 | 310,356 | 2,003,287 | 8,100,192 |
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 mainly 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 6% (2022: 4%). Interest
is payable in arrears at the end of each calendar
quarter. The amount of interest recognised for the year
2023 is EUR 1.0 million. As at 31 December 2023, the
outstanding balance amounts to EUR 20.4 million and is
repayable on demand with final maturity on July 2026.
In 2016, Socfinaf obtained a loan of EUR 20 million
from Bolloré Participations. The loan has an annual
interest rate of 6% (2022: 4%). The amount of interest
recognised for the year 2022 is EUR 1.0 million. As at
31 December 2023, the outstanding balance amounts
to EUR 20.3 million and is repayable on demand with
final maturity on June 2025.
Socfinaf did not pay any dividend in 2023 to its
parent company Socfin (2022: nil). Socfinaf has
borrowed an amount of EUR 80.0 million from Socfin
(2022: EUR 120.0 million). Annual interest at rate of
6.25% (2022: 4.25%) is payable on this loan. As such,
Socfinaf has paid an interest of EUR 5.8 million in 2023
compared to EUR 8.8 million in 2022.
Consolidated financial statements
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Note 32. Off balance sheet commitments
In 2019, a subsidiary of Socfinaf, Okomu Oil Palm
Company obtained a loan of Naira 10 billion. The
contract stipulates that Okomu will use as mortgage
guarantee, up to the loan granted, the 11,416 ha
plantation. As at 31 December 2023, the balance of the
loan amounts to EUR 7 million (2022: EUR 15 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. As at 31 December 2023,
the balance of the loan amounts to EUR 4.9 million
(2022: EUR 8.1 million) and the overdraft to nil (2022:
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. As at 31 December 2023, the balance of the
loan amounts to EUR 1 million (2022: EUR 3 million).
In compliance with Group’s commitments on
responsible management, most of the plantations
within the Group have been certified RSPO. RSPO
certification contains engagements to support
reforestation projects, named compensation plans.
Since most of the plantations have been certified RSPO,
the Group is committed into several reforestation
projects in Africa, representing an overall budget of
USD 19.6 million (EUR 17.8 million, undiscounted),
that should be expensed between 2023 and 2047.
Consolidated financial statements
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Note 33. Segment information
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 Côte d’Ivoire, Ghana, Nigeria and
Cameroon’s operating sectors come from the palm oil
and rubber sales. Those from the Liberia sector are
only from the rubber sales, while those from Sierra
Leone, Ghana, São Tomé and Principe and Congo
(DRC) come solely from the palm oil sales. Those in
the European segment come from the provision of
administrative services, of assistance in managing the
areas under plantation and the marketing of products
outside of the Group. The segment result of the Group
is the profit from operations.
The stated figures originate from internal reporting.
Since they do not reflect any consolidation or
IFRS adjustments or restatements, they are not
directly comparable to the amount reported in the
consolidated statement of the financial position and
income statement.
* Segmental breakdown of profit / (loss) as at 31 December 2022
| Revenue from | |||
| ordinary business | Revenue from | Segmental profit / | |
| with external | ordinary business | (loss) (*) | |
| EUR | customers | between segments | Restated |
| 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 |
| Depreciation, amortisation and impairment of bearer plants | -72,844 | ||
| Fair value of agricultural production | 5,115,356 | ||
| Other IFRS adjustments | -92,817 | ||
| Consolidation adjustments (intra-group and others) | 2,351,041 | ||
| Financial income and gain on disposals | 8,730,381 | ||
| Financial expenses and loss on disposals | -42,996,783 | ||
| Group share of income from associates | 11,297,778 | ||
| Income tax expense and deferred tax (expense) / income | -46,325,027 | ||
| Net Profit / (loss) for the period | 106,035,944 | ||
(*) Profit / (loss) for the period include other expenses for EUR 128.1 million, corresponding mainly to external services
invoiced to plantations and related directly to the operational activity (road maintenance, …), and other operating
expenses for EUR 25.0 million not related directly to the operational activity (other taxes, property taxes, …).
Consolidated financial statements
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* Segmental breakdown of profit / (loss) as at 31 December 2023
| Revenue from | |||
| ordinary business | Revenue from | ||
| with external | ordinary business | Segmental profit / | |
| EUR | customers | between segments | (loss) (*) |
| Europe | 0 | 0 | -3,017,768 |
| Sierra Leone | 44,340,974 | 0 | 13,979,176 |
| Liberia | 36,813,393 | 0 | -1,791,812 |
| Côte d'Ivoire | 160,456,976 | 142,039 | 15,070,482 |
| Ghana | 34,514,182 | 0 | 18,494,533 |
| Nigeria | 113,518,677 | 0 | 50,396,027 |
| Cameroon | 156,987,751 | 0 | 27,824,017 |
| São Tomé and Principe | 5,511,788 | 0 | -2,496,052 |
| Congo (DRC) | 10,923,105 | 0 | -4,555,130 |
| TOTAL | 563,066,846 | 142,039 | 113,903,472 |
| Depreciation, amortisation and impairment of bearer plants | -9,381,337 | ||
| Fair value of agricultural production | -9,522,251 | ||
| Other IFRS adjustments | 5,506,230 | ||
| Consolidation adjustments (intra-group and others) | 4,704,160 | ||
| Financial income and gain on disposals | 23,005,905 | ||
| Financial expenses and loss on disposals | -43,365,744 | ||
| Group share of income from associates | 6,002,745 | ||
| Income tax expense and deferred tax (expense) / income | -41,528,411 | ||
| Net Profit / (loss) for the period | 49,324,768 | ||
(*) Profit / (loss) for the period include other expenses for EUR 118.5 million, corresponding mainly to external services
invoiced to plantations and related directly to the operational activity (road maintenance, …), other operating expenses
for EUR 14.7 million and other operational income for EUR 11.7 million that are not related directly to the operational
activity (government grants, other taxes, property taxes, …).
Consolidated financial statements
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* Total segmental assets
G
| 31/12/2023 | 31/12/2022 | |
| EUR | EUR | |
| Europe | 1,489,353 | 2,063,733 |
| Sierra Leone | 123,185,982 | 128,721,882 |
| Liberia | 115,836,618 | 121,732,913 |
| Côte d'Ivoire | 151,924,753 | 166,346,688 |
| Ghana | 37,518,498 | 57,837,090 |
| Nigeria | 81,865,152 | 145,216,147 |
| Cameroon | 178,037,147 | 184,081,225 |
| São Tomé and Principe | 26,624,876 | 28,111,519 |
| Congo (DRC) | 51,567,843 | 68,260,622 |
| TOTAL | 768,050,223 | 902,371,819 |
| IFRS 3 / IAS 16: Bearer plants | -18,545,344 | -25,692,506 |
| IAS 2 / IAS 41: Agricultural production | 1,036,347 | 11,304,647 |
| Other IFRS adjustments | -6,556,682 | -7,621,916 |
| Consolidation adjustments (intra-group and others) | -52,372,458 | -55,200,786 |
| Total consolidated segmental assetsG | 691,612,086 | 825,161,258 |
| Consolidated assets not included in segmental assetsG | ||
| Right-of-use assets | 29,232,550 | 8,169,574 |
| Investments in associates | 24,499,660 | 27,288,358 |
| Financial assets at fair value through other comprehensive income | 4,800,038 | 300,038 |
| Long-term advances | 2,015,903 | 1,664,770 |
| Deferred tax | 2,735,632 | 4,513,652 |
| Other non-current assets | 3,089,715 | 2,619,576 |
| Consolidated non-current assets | 66,373,498 | 44,555,968 |
| Other debtors | 23,131,220 | 21,440,996 |
| Current tax assets | 9,549,095 | 12,438,610 |
| Consolidated current assets | 32,680,315 | 33,879,606 |
| Total of consolidated assets in the segmental assetsG | 99,053,812 | 78,435,573 |
| Assets classified as held for sale | 6,313,418 | 0 |
| Total assets | 796,979,317 | 903,596,831 |
Consolidated financial statements
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* Total segmental liabilities
G
| 31/12/2023 | 31/12/2022 | |
| Restated | ||
| EUR | EUR | |
| Europe | 3,261,194 | 55,702,251 |
| Sierra Leone | 2,453,806 | 3,426,717 |
| Liberia | 7,008,789 | 13,882,723 |
| Côte d'Ivoire | 29,593,122 | 22,364,064 |
| Ghana | 597,314 | 1,066,056 |
| Nigeria | 3,674,454 | 6,950,565 |
| Cameroon | 27,352,202 | 20,840,351 |
| São Tomé and Principe | 4,435,416 | 3,492,126 |
| Congo (DRC) | 2,393,585 | 1,045,995 |
| TOTAL | 80,769,881 | 128,770,849 |
| Other IFRS adjustments | 2,294,545 | 6,346,208 |
| Consolidation adjustments (intra-group and others) | -12,628,515 | -62,888,128 |
| Total consolidated segmental liabilitiesG | 70,435,910 | 72,228,929 |
| Consolidated liabilities not included in segmental liabilitiesG | ||
| Total equity | 463,930,610 | 485,307,105 |
| Non-current liabilities | 166,147,779 | 219,777,491 |
| Current financial debts | 64,103,627 | 83,477,324 |
| Current lease liabilities | 2,778,042 | 1,532,064 |
| Current tax liabilities | 28,701,137 | 40,651,438 |
| Provisions | 597,934 | 622,480 |
| Total consolidated liabilities not included in segmental liabilitiesG | 726,259,218 | 831,367,902 |
| Liabilities associated with assets classified as held for sale | 284,279 | 0 |
| Total equity and liabilities | 796,979,317 | 903,596,831 |
Consolidated financial statements
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* Costs incurred for acquisition of segmental assets
G
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 |
* Costs incurred for acquisition of segmental assets
G
during 2023
| EUR | Intangible assets | Tangible assets | Biological assets | TOTAL |
| Sierra Leone | 0 | 2,535,268 | 0 | 2,535,268 |
| Liberia | 0 | 2,492,307 | 1,238,634 | 3,730,941 |
| Côte d'Ivoire | 15,621 | 5,647,697 | 3,685,695 | 9,349,013 |
| Ghana | 0 | 1,580,958 | 160,462 | 1,741,420 |
| Nigeria | 0 | 10,397,083 | 759,758 | 11,156,841 |
| Cameroon | 0 | 12,548,621 | 3,801,263 | 16,349,884 |
| São Tomé and Principe | 0 | 811,212 | 0 | 811,212 |
| Congo (DRC) | 0 | 106,557 | 0 | 106,557 |
| TOTAL | 15,621 | 36,119,704 | 9,645,812 | 45,781,136 |
* Information by sector of activity
Revenue from external customers:
| 2023 | 2022 | |
| EUR | EUR | |
| Palm | 370,064,088 | 408,462,769 |
| Rubber | 186,846,082 | 222,252,985 |
| Other agricultural activities | 1,717,350 | 469,211 |
| Others | 4,439,331 | 6,156,969 |
| TOTAL | 563,066,850 | 637,341,934 |
Consolidated financial statements
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* Information by geographical region
Revenue from external customers by origin of the customers and geographical location:
| EUR | 2022 | |||||||||
| Geographical | Other | |||||||||
| location | Côte | Sierra | African | Rest of the | ||||||
| Origin | Europe | Liberia | d’Ivoire | Nigeria | Cameroon | Congo | Leone | countries | world | TOTAL |
| Europe | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 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 | 7,196,400 | 0 | 0 | 0 | 205,800 | 0 | 0 | 379,575 | 0 | 7,781,775 |
| Principe | ||||||||||
| 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 |
| EUR | 2023 | |||||||||
| Geographical | Other | |||||||||
| location | Côte | Sierra | African | Rest of the | ||||||
| Origin | Europe | Liberia | d’Ivoire | Nigeria | Cameroon | Congo | Leone | countries | world | TOTAL |
| Europe | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sierra Leone | 3,640,928 | 0 | 0 | 0 | 0 | 0 | 40,700,046 | 0 | 0 | 44,340,974 |
| Liberia | 34,963,720 | 1,849,674 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 36,813,394 |
| Côte d'Ivoire | 89,813,516 | 0 | 27,089,750 | 0 | 0 | 0 | 0 | 1,266,572 | 42,287,138 | 160,456,976 |
| Ghana | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 34,514,182 | 0 | 34,514,182 |
| Nigeria | 0 | 0 | 0 | 113,518,677 | 0 | 0 | 0 | 0 | 0 | 113,518,677 |
| Cameroon | 11,639,991 | 0 | 0 | 0 | 145,347,760 | 0 | 0 | 0 | 0 | 156,987,752 |
| São Tomé and | 5,222,997 | 0 | 0 | 0 | 0 | 0 | 0 | 288,791 | 0 | 5,511,788 |
| Principe | ||||||||||
| Congo (DRC) | 0 | 0 | 0 | 0 | 0 | 10,923,105 | 0 | 0 | 0 | 10,923,105 |
| TOTAL | 145,281,153 | 1,849,674 | 27,089,750 | 113,518,677 | 145,347,760 | 10,923,105 | 40,700,045 | 36,069,545 | 42,287,138 | 563,066,847 |
Consolidated financial statements
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* Information by business segment and revenue category
Revenue from external customers by business segment and geographical area
| EUR | 2022 | |||
| Category | ||||
| Business | Other agricultural | |||
| Segment | Palm | Rubber | 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 |
| EUR | 2023 | |||
| Category | ||||
| Business | Other agricultural | |||
| Segment | Palm | Rubber | products | TOTAL |
| Sierra Leone | 44,340,974 | 0 | 0 | 44,340,974 |
| Liberia | 0 | 36,813,393 | 0 | 36,813,393 |
| Côte d'Ivoire | 30,964,234 | 126,880,126 | 2,612,616 | 160,456,976 |
| Ghana | 33,301,860 | 1,136,571 | 75,751 | 34,514,182 |
| Nigeria | 101,319,579 | 12,017,173 | 181,926 | 113,518,677 |
| Cameroon | 143,702,547 | 9,998,817 | 3,286,387 | 156,987,751 |
| São Tomé and Principe | 5,511,788 | 0 | 0 | 5,511,788 |
| Congo (DRC) | 10,923,105 | 0 | 0 | 10,923,105 |
| TOTAL | 370,064,087 | 186,846,079 | 6,156,680 | 563,066,846 |
Consolidated financial statements
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Note 34. Risk management
Capital management
The Group manages its capital and adapts according
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 closely
monitoring the ratio of debt over equity.
Financial risk
The financial risk for the companies within the Group
originates mainly from changes in the selling price of
agricultural commodities, foreign exchange and, to a
lesser extent, interest rate movements.
Potential risk
Apart from Ghana and Sierra Leone (refer to Note 1.27),
countries where the Group operates do not correspond
to a hyperinflationary economies or suffer from an
immediate threat of price devaluation. Nevertheless,
in a minority of those countries, the political system
and economic stability remain fragile and could lead
to currency devaluation or hyperinflation.
Risk management and opportunities
The Group regularly reviews its sources of financing as
well as currency movements. Moreover, its decisions
are based on a variety of risks and opportunities,
which themselves depend on several factors, including
interest rates, currency and counterparties.
Market risk
* Price risk in commodities market
Potential risk
The Group markets its finished products at prices
that may be influenced by commodity prices in
international markets. It therefore faces the risk of
volatility in the prices of these commodities.
Risk management and opportunities
The main policy of the Group’s companies has always
been to control its production costs. It aims to
generate margins for the viability of structures in the
event of a significant drop in the selling prices of raw
materials
G
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, such as:
- the production of agricultural products of superior
quality and branded, in particular for rubber and;
- the use of the Group’s expertise in the commercial
sector.
The Group reduces its exposure to price risk by
investing into different geographical markets and
products.
* Foreign currency risk
Potential risk
The Group carries out transactions in local currencies,
the main ones being US dollar and Nigerian naira.
In addition, financial instruments hedging against
fluctuations in exchange rate 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 remains strong as at 2023 year-
end. 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 33 (Segment
information) to the financial statements.
Consolidated financial statements
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Risk management and opportunities
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 the local currencies of
a region. This practice is indeed favorable for the
significant investments made in the plantations, as an
attempt to reduce borrowings wherever possible.
Management closely monitors developments in the
Nigerian foreign exchange markets and is keen to
present a fair view of the financial statements.
* Interest rate risk
Potential risk
The first risk linked to the interest rate denotes a change
in cash flows relating to short-term borrowings, often
on a variable rate, as well as a relatively high level of
base interest rates on cash and cash equivalents. The
second risk, is linked to developing markets, when
borrowing in a local currency.
Risk management and opportunities
The first risk is maintained under control by an
active policy of monitoring the evolution of local
financial markets on the one hand and, when necessary,
short-term debt consolidation in the long term on the
other. Another systematic policy keeps an eye on the
second risk, by putting local and international banks
in competition with international lenders who can
offer real investment and development opportunities
at attractive rates.
Credit risk
Potential risk
Credit risk arises from the potential inability of clients
to meet their contractual obligations.
Risk management and opportunities
To manage credit 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
Potential risk
Liquidity risk is defined as the risk that the Group
cannot meet its obligations in time or at a reasonable
price. This risk mainly affects plantations, which are
both the main source of cash and financing needs.
Risk management and opportunities
Given the specific economic and technological
environment of each plantation, the Group manages
the liquidity risk in a decentralised manner. However,
both the available cash 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 23 and 19) with low credit risk
institutions.
Emerging market risks
Potential risk
Current or future political instability in certain
countries in which the Group operates may affect the
Group’s profitability and its ability to do business and
generate revenue.
The political system in some of the Group’s markets is
relatively fragile and can be potentially threatened by
cross-border conflicts or wars between rival groups.
Risk management and opportunities
Through its activities, the Group contributes to the
improvement of the quality of life in the countries
in which it operates. It also focuses on improving
the stability of its markets, which may lead to
Consolidated financial statements
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an appreciation in the value of the Group’s local
companies.
By diversifying the countries, economies and currencies
in which the Group generates its revenues and cash
flows, it reduces its exposure to emerging market risk.
It is aware of its environmental and social responsibility
towards the local population and is continually
implementing initiatives to this end.
Risk of expropriation
Potential risk
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 exert control over the Group’s
assets. This is known as the risk of expropriation.
Risk management and opportunities
The diversified geographical distribution of the
countries in which the Group generates its revenues
and its cash flows reduces its exposure to this risk.
Credibility risk
Potential risk
With the Group being linked to the state of the
financial markets, the Group may be exposed to a
credibility risk when said markets lose confidence.
This depends on the Group’s ability to maintain sound
financial health considering:
- its environmental impact,
- its social responsibility and
- the economic and geopolitical risks that certain
Group entities may face.
Risk management and opportunities
The Group has published its responsible management
policy in 2017, which was 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.
Risk sensitivity
* Exchange rate risk
The Group is exposed to changes in value arising
from fluctuations in exchange rates generated by its
operating activities. However, as local turnover was
made in the local currency, and export sales are made
in US dollar, the Group’s exposure is mainly 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 0.1 million.
In the case where the currency of sale is not the
functional currency of the Company and it is linked
to a strong currency, the conversion is ensured at the
time of the conclusion of the contract. The local sales
concluded in the local currency in 2023 (including
US dollars) amounted to EUR 374.0 million. The
global sales (mainly concluded in US dollars) in 2023
amounted to EUR 189.1 million.
* Interest rate risk
The breakdown of fixed rate loans and variable
rate loans is described in Note 23. Following the
reimbursement of the variable loan rate arrangement
by Socfinaf in 2023, the Group’s exposure to interest
rate risk decreased in 2023. The management
maintains its policy to closely monitor the interests
rate evolution.
* Credit risk
As at 31 December 2023, the trade receivables from
global customers and local customers amount to
EUR 18.1 million and EUR 9.1 million respectively.
Accounts receivable from global customers are mainly
receivables related to the sale of rubber. Palm oil is
sold locally to local players which entails a 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.
Consolidated financial statements
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| 2023 | 2022 | |
| EUR | EUR | |
| Trade receivables | 29,023,129 | 25,333,540 |
| Provision incurred mainly on non-operational receivables | -1,787,293 | -1,814,318 |
| Other receivables | 23,131,220 | 21,440,996 |
| Total net receivables | 50,367,056 | 44,960,218 |
| Amount not yet due | 50,345,512 | 44,704,982 |
| Amount due less than 6 months | 0 | 0 |
| Amount due for more than 6 months and less than one year | 0 | 255,236 |
| Amount due for more than one year | 21,544 | 0 |
| Total net receivables | 50,367,056 | 44,960,218 |
Note 35. Contingent liabilities
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
1 January 2010 to 31 December 2013, CNPS estimated
the due amount at CFA 182 million, equivalent to
EUR 277,000. Based on SOGB’s calculations, however,
the amount owed is of 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 for the
dispute between them and to submit a transactional
agreement, if necessary.
In the absence of an amicable settlement for 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 matter of housing on plantations in rural areas
is a general issue and concerns most agricultural and
forestry companies, particularly those in the rubber,
oil palm and banana sectors.
For this reason, actions have been undertaken by
companies in the sector, which are 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 shown leniency for determining
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 that comprises 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
Consolidated financial statements
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outcome will determine whether or not the case is
referred to the Sassandra Court, which has the power
alone to enforce the parties. Insofar as there is no
legal constraint to date, and based on the above, the
management is of the opinion that no provision should
be recorded because the probability of a claim is very
low.
Note 36. Political and economic environment
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.
Note 37. Events after the closing date
There are no material events after the closing date
to mention.
Note 38. Assets classified as held for sale
| 31/12/2023 | |
| ASSETS | EUR |
| Non-Current Assets | |
| Right-of-use assets | 33,851 |
| Property, plant and equipment | 2,241,077 |
| Biological assets | 1,969,162 |
| 4,244,090 | |
| Current Assets | |
| Inventories | 956,711 |
| Current biological assets | 21,188 |
| Trade receivables | 2,973 |
| Other receivables | 427,509 |
| Current tax assets | 299,777 |
| Cash and cash equivalents | 361,169 |
| 2,069,328 | |
| Assets classified as held for sale | 6,313,418 |
Consolidated financial statements
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| 31/12/2023 | |
| LIABILITIES | EUR |
| Non-Current Liabilities | |
| Long-term lease liabilities | 35,449 |
| 35,449 | |
| Current Liabilities | |
| Short-term lease liabilities | 10,417 |
| Trade payables | 119,584 |
| Other payables | 118,829 |
| 248,830 | |
| Liabilities associated with assets classified as held for sale | 284,279 |
As at 31 December 2023, the carrying amounts of the assets classified as held for sale and related liabilities
are attributable to SRC. In the last quarter of 2023, the management of Socfinaf conducted negociations on
the disposal of SRC. Accordingly, SRC was reclassified as a disposal as at 31 December 2023. The transaction is
subject to local regulatory approval and is expected to close in the first half of 2024.
Note 39. Auditor’s fees
| 2023 | 2022 | |
| EUR | EUR | |
| Audit (VAT included) | 732,412 | 758,845 |
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. This firm performed no material consulting work
or other non-audit services in 2023 or in 2022.
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Company’s management report
Presented by the Board of Directors
at the Annual General Meeting of 29 May 2024
Ladies and gentlemen,
We are pleased to present our annual report and to submit for your approval the annual accounts of our company
at 31 December 2023.
Activities
Socfinaf holds financial interests in portfolio companies which operate directly or indirectly in tropical Africa in
the rubber and palm oil sectors.
Result for the period
The profit and loss account for the year, compared to that of the previous year, is as follows:
(EUR million)
2023 2022
INCOME
Value adjustments in respect of financial assets
0 0.4
Income from equity investments
Dividends received
45.2 46.9
Interests
1.3 1.6
Capital gain on disposal of financial fixed assets
0 0.1
Other interest receivable and similar income
4.5 5.8
Total income
51.0 54.8
EXPENSES
Impairment:
On financial assets (1) 33.1 (2) 66.1
Other external expenses 3.4 2.9
Interest payable and similar expenses 8.7 18.6
Income tax 3.2 4.7
Total expenses
48.4 92.3
PROFIT/LOSS FOR THE FINANCIAL YEAR 2.6 -37.5
(1) At at 31 December 2023, the Board of Directors decided to reduce the value of its advance to Salala Rubber
by EUR 32,960,912 and reduce the acquisition value of Socfinco by EUR 115,675.
(2) As at 31 December 2022, the Board of Directors decided to reduce the acquisition value of Brabanta by EUR
17,868,990 and the value of its advance by EUR 48,250,914.
Company’s management report
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Revenue from financial assets
(EUR million)
2023 2022
Dividends
Socapalm 10.6 16.0
Okomu 10.9 15.2
Befin 13.4 7.5
Socfinco FR 4.0 4.0
Sogescol FR 3.7 2.7
Safa 2.0 0.9
Others 0.5 0.6
Total of dividends 45.1 46.9
Interest on receivables amounted to EUR 1.6 million
and foreign exchange gains to EUR 4.3 million.
The profit for the year amounted to EUR 2.6 million
compared to a loss of EUR 37.5 million on 31 December
2022.
Balance sheet
As at 31 December 2023, Socfinaf’s total assets
amounted to EUR 349.3 million compared to
EUR 398.6 million on 31 December 2022.
Socfinaf’s assets mainly consist of financial fixed
assets of EUR 187.3 million, long term loan
receivables of EUR 129.5 million, amounts owed
by affiliated undertakings and other receivables
for EUR 31.2 million, and cash and equivalent of
EUR 1.3 million.
The equity amounted to EUR 223.9 million before
appropriation of results.
Taking into account the positive cash flow of
EUR 36 million generated by the activity and the
repayment of the advances from the subsidiaries (SAC
and PSG) for EUR 24 million, Socfinaf’s indebtedness fell
from EUR 177 million on 1 January to EUR 125 million
on 31 December 2023.
Portfolio
Movements
During the year, a non-recurring impairment on Socfinco
was recorded for a total amount of EUR 0.1 million.
In addition, Socfinaf has participated in the capital
increase of Management Associates.
Valuation
The investments are estimated at a total value of
EUR 656.4 million and includes an unrealised gain of
EUR 469.2 million compared to their acquisition costs,
potentially adjusted.
Company’s management report
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Investments
The main direct and indirect investments have evolved during the last months as follows:
PROJECTS IN OPERATION AT 31 DECEMBER 2023
(EUR million)
AFRICA
TOTAL
AFRICA
Sierra Leone
Liberia Côte d’Ivoire Ghana Nigeria Cameroon Sao Tomé DRC
SAC LAC & SRC SOGB SCC PSG OKOMU SOCAPALM SAFACAM AGRIPALMA BRABANTA
TURNOVER
Actual 2022
58,436 40,675 140,233 57,224 31,615 132,867 112,852 35,406 7,782 16,345 637,895
Actual 2023
44,330 35,144 109,398 48,455 34,417 105,107 129,003 35,943 5,512 10,806 562,132
Forecasts 2023
43,734 39,300 121,705 52,703 26,198 150,325 116,447 36,010 5,768 15,499 612,699
NET RESULT
Actual 2022
16,483 1,278 23,863 4,858 5,560 38,955 16,269 4,189 909 -671 109,469
Actual 2023
11,124 -19,172 8,035 4,099 12,781 31,581 18,194 934 -2,463 -4,752 57,723
Forecasts 2023
7,904 167 13,460 4,028 8,375 35,136 11,548 3,416 -1,775 -1,374 78,679
PALM PRODUCT
SURFACE AREA
(HA)
Mature
12,349 - 7,471 - 6,140 19,044 29,458 5,306 1,879 6,072 87,719
Immature
- - 20 - - - 2,975 - - - 2,995
Total
12,349 - 7,491 - 6,140 19,044 32,433 5,306 1,879 6,072 90,714
PRODUCTION
FFB
Actual 2022
218,363 - 148,447 - 94,048 247,175 475,157 73,423 27,328 54,291 1,338,232
Actual 2023
209,067 - 144,174 - 132,495 272,639 456,398 72,094 22,496 49,871 1,359,233
Forecasts 2023
232,301 - 152,586 - 110,109 307,517 486,602 80,736 25,475 62,016 1,457,342
CRUDE
PRODUCTION
Actual 2022
51,919 - 35,301 - 25,375 54,101 146,231 16,526 6,429 13,769 349,653
Actual 2023
50,249 - 34,159 - 35,472 69,563 138,783 16,096 4,871 13,232 362,425
Forecasts 2023
55,752 - 35,637 - 28,628 72,578 154,312 18,260 6,215 15,604 386,986
EXTRACTION
RATE
Actual 2022
23,78 - 22,78 - 26,98 21,77 22,45 21,94 23,53 24,13 22,96
Actual 2023
24,04 - 22,49 - 26,77 22,28 22,28 22,19 21,65 25,72 23,12
Forecasts 2023
24,00 - 22,50 - 26,00 22,16 22,46 22,50 23,70 24,00 23,00
TURNOVER
Actual 2022
58,436 - 39,919 - 30,688 120,544 111,190 24,811 7,782 16,345 409,715
Actual 2023
44,330 - 30,973 - 33,282 93,962 127,240 26,236 5,512 10,806 372,340
Forecasts 2023
43,734 - 31,165 - 25,263 136,493 113,537 22,858 5,768 15,499 394,317
Company’s management report
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PROJECTS IN OPERATION AT 31 DECEMBER 2023
(EUR million)
AFRICA
TOTAL
AFRICA
Sierra Leone
Liberia Côte d’Ivoire Ghana Nigeria Cameroon Sao Tomé DRC
SAC LAC & SRC SOGB SCC PSG OKOMU SOCAPALM SAFACAM AGRIPALMA BRABANTA
RUBBER
SURFACE
AREA (HA)
Mature
- 14,047 12,906 - 942 6,265 1,936 3,509 - - 39,605
Immature
- 2,668 2,879 - - 1,070 - 917 - 12 7,546
Total
- 16,715 15,785 - 942 7,335 1,936 4,426 - 12 47,151
PRODUCTION
Actual 2022
- 27,401 65,815 39,554 - 8,124 - 6,377 - - 147,271
Actual 2023
- 27,694 64,309 38,559 - 9,907 - 9,004 - - 149,472
Forecasts 2023
- 29,082 67,000 39,000 - 9,975 - 9,473 - - 154,530
TURNOVER
Actual 2022
- 40,675 100,313 57,224 927 12,323 1,662 10,595 - - 228,179
Actual 2023
- 35,144 78,425 48,455 1,135 11,145 1,763 9,707 - - 189,792
Forecasts 2023
- 39,300 90,541 52,703 935 13,832 2,910 13,152 - - 218,382
The production data correspond to the quantities in tons of
Milled Rubber and Crude Palm Oil. Rubber production and sales
are presented after elimination of intercompany transactions.
Consolidated figures may however differ.
Allocation of profit
The profit of the year of EUR 2,658,856 increased by retained
earnings of EUR 93,870,859, give total retained earnings of
EUR 96,529,714 which it is proposed to carry forward again.
After this allocation, the total reserves will be as follows:
Reserves EUR
Legal reserve
3,567,330
Other reserves
628,717
Available reserve
59,629
Retained earnings
96,529,714
100,785,391
Treasury shares
The Company did not buy back its own shares during the 2023 financial year.
Research and development
During the financial year 2023, Socfinaf did not incur any expenses for research and development.
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Financial instruments
During the financial year 2023, 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.
Branch
The Company has a permanent establishment in Fribourg (CH).
Mentions required by Art. 11 (1) points a) to k) of the law of 19 May 2006
concerning Public Takeover Bids
a) b) f) The issued capital of the Company is set at
EUR 35,673,300 represented by 17,836,650
shares without par value, fully paid up. Each
share entitles the holder to one vote without
limitation or restriction.
c) 1 February 2017, Socfin declared that it holds a
58.85% direct stake in Socfinaf.
On 3 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 lArtois, 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 and 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.
Company’s management report
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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:
• title holding including special control rights;
• the existence of a staff shareholding system;
• shareholder agreements that may result in
restrictions on the transfer of securities or voting
rights;
• the agreements to which the Company is party,
and which take effect are modified or terminated
in the event of a change of control of the Company
following a takeover bid;
• the indemnities provided in the event of the
resignation or dismissal of members of the Board
of Directors or staff following a takeover bid.
Responsible management policy
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 well-being, health, safety and
natural resource management.
An implementation plan for this policy has been
defined and implemented throughout 2023.
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.
Estimated value of the share (company accounts)
The estimated value of Socfinaf as at 31 December
2023 before allocation of the result for the financial
year amounts to EUR 693.1 million. This valuation
incorporates the unrealised capital gains of the
portfolio.
As a reminder, the market share price was EUR 10.80
at the end of 2023 against EUR 11.80 a year earlier.
Significant events after the reporting date
As at 31 December 2023 and 2022, the Company had
no significant off-balance sheet commitments.
Company’s management report
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Company’s management report
Main risks and uncertainties
It must be emphasized that the Group’s investments in
Africa 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.
Perspectives
The result for the 2024 financial year will depend to a large extent on the dividend distributions of the
subsidiaries; these are not yet fixed.
Statutory appointments
The term served as director by Mr. Cyrille Bolloré representing Bolloré Participations expire 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 2030.
The Board of Directors
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Audit report on the Company’s financial statements
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
To the Shareholders of
Socfinaf S.A
4, avenue Guillaume
L-1650 Luxembourg
Opinion
We have audited the financial statements of Socfinaf
S.A. (the “Company”), which comprise the balance
sheet as at 31 December 2023, and the profit and
loss account for the year then ended, and the notes
to the financial statements, including a summary of
significant accounting policies.
In our opinion, the accompanying financial statements
give a true and fair view of the financial position of the
Company as at 31 December 2023, and of the results of
its operations for the year then ended in accordance
with Luxembourg legal and regulatory requirements
relating to the preparation and presentation of the
financial statements.
Basis for opinion
We conducted our audit in accordance with EU
Regulation N° 537/2014, the Law of 23 July 2016
on the audit profession (“Law of 23 July 2016”) and
with International Standards on Auditing (“ISAs”)
as adopted for Luxembourg by the “Commission de
Surveillance du Secteur Financier” (“CSSF”). Our
responsibilities under the EU Regulation Nº 537/2014,
the Law of 23 July 2016 and ISAs as adopted for
Luxembourg by the CSSF are further described in the
“Responsibilities of the “réviseur d’entreprises agréé”
for the audit of the financial statements” section of
our report. We are also independent of the Company
in accordance with the International Code of Ethics
for Professional Accountants, including International
Independence Standards, issued by the International
Ethics Standards Board for Accountants (“IESBA Code”)
as adopted for Luxembourg by the CSSF together with
the ethical requirements that are relevant to our
audit of the financial statements, and have fulfilled
our other ethical responsibilities under those ethical
requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the financial statements of the current
period. These matters were addressed in the context
of the audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Valuation of shares in affiliated undertakings
Risk identified
As at 31 December 2023, the shares in affiliated
undertakings amounts to 187 million euros and
represents 54% of the total assets of the balance
sheet. Shares in affiliated undertakings are valued at
historical acquisition cost, respectively their nominal
value, which includes incidental expenses. In the case
of durable depreciation in value according to the
opinion of the Board of Directors, value adjustments
are made in respect of financial fixed assets, so that
they are valued at the lower figure to be attributed
to them at the balance sheet date. These value
adjustments are not continued if the reasons for
which the value adjustments were made have ceased
to apply. In the event of an impairment that, in the
opinion of the Board of Directors, is of a lasting
nature, these financial 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.
The assessment of the durable depreciation in value
of these shares in affiliated undertakings requires the
exercise of the Board of Directors’ judgement in its
choice of the elements to be considered according
to the shares in affiliated undertakings, whether
market elements (shares price when applicable) and/
or historical elements (adjusted net equity) and/or
forecast elements (discounted future cash flows to
shareholders).
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Portrait du Groupe
Due to the size of the balance and judgement included,
we considered this area to be a key audit matter.
Our answer
Our audit procedures over the impairment of the shares
in affiliated undertakings and of the loans to affiliated
undertakings included amongst other :
• Assessing the accounting policies determined by
the Board of Directors, as described in the note
2 of the financial statements, to determine the
value adjustments to be recorded on shares in the
affiliated undertakings ;
• Ensuring that the accounting policies used by the
Board of Directors were properly applied:
- when the Board of Directors relied on market
data, we reconciled the share prices as at 31
December 2023 used for the valuation of shares
in affiliated undertakings to the official stock
markets quotations ;
- when the Board of Directors relied on historical
data, we reconciled the adjusted net equity
used in the valuation of the shares in affiliated
undertakings as at 31 December 2023 to the
financial information of the related affiliated
undertakings and assessed the appropriateness of
evidence supporting the adjustments made to the
net equity, if any.
• Assessing the appropriateness of the disclosures
made in the Note 3 of the financial statements.
Other information
The Board of Directors is responsible for the other
information. The other information comprises the
information included in the annual reporting including
the management report and the corporate governance
statement but does not include the financial
statements and our report of “réviseur d’entreprises
agréé” thereon.
Our opinion on the financial statements does not cover
the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements,
our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the financial statements
or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a
material misstatement of this other information, we
are required to report this fact. We have nothing to
report in this regard.
Responsibilities of the Board of Directors and of
those charged with governance for the financial
statements
The Board of Directors is responsible for the
preparation and fair presentation of the financial
statements in accordance with Luxembourg legal and
regulatory requirements relating to the preparation
and presentation of the financial statements, and
for such internal control as the Board of Directors
determines is necessary to enable the preparation
of financial statements that are free from material
misstatement, whether due to fraud or error.
The Board of Directors is also responsible for
presenting and marking up the financial statements
in compliance with the requirements set out in the
Delegated Regulation 2019/815 on European Single
Electronic Format, as amended (“ESEF Regulation”).
In preparing the financial statements, the Board of
Directors is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using
the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company
or to cease operations, or has no realistic alternative
but to do so.
Responsibilities of the “réviseur d’entreprises
agréé” for the audit of the financial statements
The objectives of our audit are to obtain reasonable
assurance about whether the financial statements
as a whole are free from material misstatement,
whether due to fraud or error, and to issue a report
of the “réviseur d’entreprises agréé” that includes
our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit
conducted in accordance with EU Regulation N°
537/2014, the Law of 23 July 2016 and with the ISAs
as adopted for Luxembourg by the CSSF will always
detect a material misstatement when it exists.
Misstatements can arise from fraud or error and
are considered material if, individually or in the
Audit report on the Company’s financial statements
Audit report on the Company’s financial statements
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Audit report on the Company’s financial statements
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with EU Regulation
N° 537/2014, the Law of 23 July 2016 and with ISAs
as adopted for Luxembourg by the CSSF, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material
misstatement of the financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting
estimates and related disclosures made by the
Board of Directors.
• Conclude on the appropriateness of Board of
Directors’ use of the going concern basis of
accounting and, based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may cast
significant doubt on the Company’s ability to
continue as a going concern. If we conclude that
a material uncertainty exists, we are required
to draw attention in our report of the “réviseur
d’entreprises agréé” to the related disclosures in
the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our report of the “réviseur d’entreprises
agréé”. However, future events or conditions may
cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events in
a manner that achieves fair presentation.
• Assess whether the financial statements have been
prepared, in all material respects, in compliance
with the requirements laid down in the ESEF
Regulation.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and
communicate to them all relationships and other
matters that may reasonably be thought to bear on
our independence, and where applicable, related
safeguards.
From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the financial
statements of the current period and are therefore
the key audit matters. We describe these matters in
our report unless law or regulation precludes public
disclosure about the matter.
Report on other legal and regulatory requirements
We have been appointed as “réviseur d’entreprises
agréé” by the General Meeting of the Shareholders on
26 May 2020 and the duration of our uninterrupted
engagement, including previous renewals and
reappointments, is 4 years.
The management report is consistent with the financial
statements and has been prepared in accordance with
applicable legal requirements.
The accompanying corporate governance statement
on pages 31 to 36 is the responsibility of the Board
of Directors. The information required by article
68ter paragraph (1) letters c) and d) of the law of
19 December 2002 on the commercial and companies
register and on the accounting records and annual
accounts of undertakings, as amended, is consistent
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Portrait du Groupe
Audit report on the Company’s financial statements
with the financial statements and has been prepared
in accordance with applicable legal requirements.
We have checked the compliance of the financial
statements of the Company as at 31 December 2023
with relevant statutory requirements set out in the
ESEF Regulation that are applicable to the financial
statements. For the Company, it relates to :
• Financial statements prepared in valid xHTML
format
In our opinion, the financial statements of the
Company as at 31 December 2023, have been
prepared, in all material respects, in compliance with
the requirements laid down in the ESEF Regulation.
We confirm that the audit opinion is consistent with
the additional report to the audit committee or
equivalent.
We confirm that the prohibited non-audit services
referred to in EU Regulation No 537/2014 were not
provided and that we remained independent of the
Company in conducting the audit.
Ernst & Young
Société anonyme
Cabinet de révision agréé
Anthony Cannella
Company financial statements
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1. Balance sheet as at 31 December 2023
2023 2022
ASSETS
Note EUR EUR
FIXED ASSETS
Financial assets
3
Shares in affiliated undertakings 187,264,604.55 182,880,279.55
Loans to affiliated undertakings 129,533,966.49 178,795,759.27
316,798,571.04 361,676,038.82
CURRENT ASSETS
Debtors
Amounts owed by affiliated undertakings
becoming due and payable within one year 28,993,195.61 33,284,161.85
Other debtors
becoming due and payable within one year 1,936,640.00 1,452,480.00
30,929,835.61 34,736,641.85
Investments
Shares in affiliated undertakings
248,406.09 248,406.09
Cash at bank and in hand
1,301,619.70 1,939,330.90
TOTAL ASSETS
349,278,432.44 398,600,417.66
The accompanying notes form an integral part of the financial statements.
Company financial statements
Company financial statements
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2023 2022
CAPITAL, RESERVES AND LIABILITIES Note 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
93,870,858.69 131,413,608.00
Profit for the financial year
2,658,855.71 -37,542,749.31
223,912,557.53 221,253,701.82
CREDITORS
Amounts owed to credit institutions
becoming due and payable within one year 7.00 9.03
Trade creditors
becoming due and payable within one year 225,304.17 220,624.09
Amounts owed to affiliated undertakings 5
becoming due and payable after more than one year 80,000,000.00 120,000,000.00
becoming due and payable within one year 1,252,128.31 14,947,456.73
Amounts owed to undertakings with which the undertaking is
linked by virtue of participating interests
6
becoming due and payable after more than one year 20,000,000.00 20,201,643.84
becoming due and payable within one year
20,705,753.25 20,203,836.00
Other creditors
Tax authorities 2,130,637.50 1,665,126.39
Other creditors
becoming due and payable within one year 1,052,044.68 108,019.76
125,365,874.91 177,346,715.84
TOTAL CAPITAL, RESERVES AND LIABILITIES 349,278,432.44 398,600,417.66
The accompanying notes form an integral part of the financial statements.
Company financial statements
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2. Income statement for the year ended 31 December 2023
2023 2022
Note EUR EUR
Raw materials
G
and consumables and others external expenses
Other external expenses
-2,936,663.69 -2,685,678.73
Value adjustments
in respect of current assets -4,500.00 0.00
Other operating expenses
-421,143.32 -248,765.87
Income from participating interests
derived from affiliated undertakings 7 45,173,448.69 46,958,007.91
Other interest receivable and similar income
derived from affiliated undertakings 8 5,872,854.29 7,273,633.68
other interest and similar income 10,081.36 109,529.96
Value adjustments in respect of financial assets and of
investments held as current assets
3 -33.076.586.91 -65,679,615.45
Interest payable and similar expenses
derived from affiliated undertakings -6,638,801.02 -16,979,066.77
other interest and similar expenses -2,069,245.77 -1,618,491.65
Tax on profit
-2,783,087.92 -4,134,647.39
Profit after taxation
3,126,355.71 -37,005,094.31
Other taxes not shown above
-467,500.00 -537,655.00
Profit for the financial year 2,658,855.71 -37,542,749.31
Allocation of profit
2023 2022
EUR EUR
Retained earnings
96,529,714.40 93,870,858.69
From the balance:
10% to the Board of Directors
0.00 0.00
90% to 17,836,650 shares
0.00 0.00
96,529,714.40 93,870,858.69
Dividend per share
0.00 0.00
The accompanying notes form an integral part of the financial statements.
Company financial statements
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3. Notes to the parent company financial statements for the 2023 financial year
Note 1. Overview
SOCFINAF S.A., (the “company’’) was incorporated on
20 November 1972 as a public limited company and
adopted the status of “Soparfi
G
” on 10 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 Luxembourgish 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 1 January and ends on
31 December.
Note 2. Accounting principles, rules and methods
General principles
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
19 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.
Currency conversion
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.
Company financial statements
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At the balance sheet date:
- 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, the current portion of receivables is
one exception to this, as it is valued individually at
the lowest 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;
- all other assets, expressed in a currency other
than the currency of the balance sheet, are valued
individually at the lower of their value at the
historical exchange rate or their value determined
on the basis of the exchange rate prevailing at the
balance sheet date;
- all liability items, expressed in a currency other
than the currency of the balance sheet, are valued
individually at the highest of their value. For this,
the highest amount is used between their value
at the historical exchange rate and their value
determined on the basis of the exchange rate
prevailing on the balance sheet date.
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.
Valuation of financial assets
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.
The aim of the latter is to give them the lowest 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 either the market or the equity value 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:
- for support companies (other than plantations
or industrial companies), the Board of Directors
records the value adjustment resulting from the
smaller difference between the net book value of
the investment and the share held in the revalued
net assets or in the consolidated net assets;
- for investments in plantations or industrial
companies, the Board of Directors makes a value
adjustment to adjust the carrying value to the
enterprise value, which is calculated on the basis
of the discounted future cash flows available to the
shareholders. These discounted future cash flows
take into account the foreseeable development of
the business of the investments under test.
Company financial statements
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However, the Board of Directors may take other
factors into consideration. Particularly, 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
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 are no longer applicable.
Securities
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.
Liabilities
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.
Geopolitical uncertainties
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 were
made following military operations initiated by Russia
against Ukraine on 24 February 2022.
On 7 October 2023, Palestinian militant groups led by
Hamas launched a coordinated surprise offensive on
Israel resulting in more than 1,200 deaths, primarily
Israeli citizens. Following this attack, Israel declared
itself in a state of war for the first time since the Yom
Kippur War in 1973.
Due to the geopolitical tensions, since February 2022,
there has been a significant increase in volatility on the
securities and currency markets. The conflicts have
had a significant impact on the financial markets, with
many investors concerned about the risk of further
escalation and the ensuing impact on global trade and
economic growth.
Although the aforementioned aspects have not
significantly impacted the company’s operations nor
performance and going concern during 2023, the
Board of Directors continues to monitor the evolving
situation and its impact on the company’s financial
position and results.
Company financial statements
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Note 3. Financial fixed assets
Shares in affiliated
undertakings
Loans to affiliated
undertakings Total
2023 2022 2023 2022 2023 2022
EUR EUR EUR EUR EUR EUR
Acquisition cost/nominal value at
the beginning 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
Increases
4,500,000.00 1,428,708.64 1,553,615.15 3,049,548.88 6,053,615.15 4,478,257.52
Decreases
0.00 -642,487.94 -17,854,496.02 -45,555,303.46 -17,854,496.02 -46,197,791.40
Acquisition cost/nominal value at
the end of the year
245,084,754.25 240,584,754.25 219,725,393.33 236,026,274.20 464,810,147.58 476,611,028.45
Value adjustments at the beginning
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
Impairment
-115.675.00 -17,868,989.74 -32,960,911.91 -48,250,913.65 -33,076,586.91 -66,119,903.39
Reversal
0.00 440,287.94 0.00 0.00 0.00 440,287.94
Value adjustments at the end
of the year
-57,820,149.70 -57,704,474.70 -90,191,426.84 -57,230,514.93 -148,011,576.54 -114,934,989.63
Net book value at the end
of the year
187,264,604.55 182,880,279.55 129,533,966.49 178,795,759.27 316,798,571.04 361,676,038.82
Company financial statements
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Note 3. Financial fixed assets (continued)
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 as at
31/12/2023
(including net
income) (*)
Net income
in foreign
currency as at
31/12/2023
Plantations Socfinaf Ghana Ghana 100.00 32,503,775 31.12.2023 GHS 379,754,565 105,695,657
Socfin Agricultural Company Sierra Leone 93.00 20,445,954 31.12.2023 USD 45,729,469 12,045,651
Liberian Agricultural Company Liberia 100.00 13,793,904 31.12.2023 USD 42,913,181 -17,904,212
Salala Rubber Corporation Liberia 100.00 0 31.12.2023 USD -2,330,505 -2,856,146
Bereby-Finances "BEFIN" Ivory Coast 87.06 13,604,405 31.12.2023 XAF 20,499,851,949 10,155,656,943
Socapalm Cameroon 67.46 40,640,840 31.12.2023 XAF 67,873,001,101 11,934,489,201
Okomu Oil Palm Company Nigeria 66.38 22,151,171 31.12.2023 NGN 36,179,061,989 18,076,920,462
Brabanta Congo (DRC) 100.00 0 31.12.2023 CDF 74,717,183,091
-12,076,986,217
Induservices Luxembourg 30.00 30,000 31.12.2023 EUR 486,125 158,489
Socfinde Luxembourg 20.00 801,000 31.12.2023 EUR 6,667,848 644,758
Terrasia Luxembourg 33.28 246,705 31.12.2023 EUR 644,145 29,142
SAFA France 100.00 26,535,600 31.12.2023 EUR 22,235,517 2,410,067
Induservices FR Switzerland 50.00 642,202 31.12.2023 EUR 877,365 -218,056
Socfinco FR Switzerland 50.00 486,891 31.12.2023 EUR 14,921,076 6,488,998
Sogescol FR Switzerland 50.00 1,985,019 31.12.2023 USD 16,660,468 6,705,434
Sodimex FR Switzerland 50.00 621,424 31.12.2023 EUR 4,313,232 609,180
Centrages Belgium 50.00 4,074,577 31.12.2023 EUR 3,295,563 117,522
Immobilière de la Pépinière Belgium 50.00 3,015,798 31.12.2023 EUR 3,518,757 -136,790
Socfinco Belgium 50.00 763,875 31.12.2023 EUR 1,527,706 -9,367
STP Invest Belgium 100.00 0 31.12.2023 EUR 1,770,880 -2,812
182,343,140
(*) Based on unaudited financial statements as at 31 December 2023.
Valuation of shares in affiliated undertakings:
During the year, the company has participated in the capital increase of Management Associates for an amount of EUR 4,500,000.
As at 31 December 2023, the Board of Directors decided to reduce the acquisition value of Socfinco by EUR 115,675 following the
update of the portfolio valuation.
As at 31 December 2023, the Board of Directors is of the opinion that there is no other permanent value decrease for the shares in
affiliated undertakings.
Company financial statements
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Note 3. Financial fixed assets (continued)
Valuation of loans to affiliated undertakings:
As at 31 December 2023, loans to affiliated undertakings are as follows:
Related parties Currency Balance Balance
Unrealised
exchange gains /
(losses) *
in currency in EUR EUR
Induservices EUR 130,000 130,000 0
Management Associates EUR 280,000 280,000 0
Salala Rubber Corporation USD 6,500,000 5,882,353 0
Brabanta USD 21,000,000 19,688,730 -684,205
Socfin Agricultural Company USD 63,779,256 52,293,824 5,424,960
Liberian Agricultural Company USD 36,404,647 32,309,252 636,130
Plantations Socfinaf Ghana USD 1,000,000 849,860 55,117
Agripalma EUR 18,099,947 18,099,947 0
Situation as at 31 December 2023 129,533,966 5,432,002
* 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.
During the year, the company has received a reimbursement of EUR 16,139,993 from Plantations Socfinaf Ghana,
EUR 7,313,274 from Socfin Agricultural Company and has paid an advance to Salala Rubber Corporation of
EUR 1,809,955.
As at 31 December 2023, the Board of Directors decided to reduce the value of the shareholder advance granted
to Salala Rubber Corporation by EUR 32,960,912 in order to bring the receivable to its net realisable value.
As at 31 December 2023, the Board of Directors are of the opinion that these loans are recoverable as such, no
impairment loss has been accounted for.
Company financial statements
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Note 4. Equity
Issued
capital
EUR
Share
premium
EUR
Legal
reserves
EUR
Other
reserves
EUR
Retained
earnings
EUR
Results for
the year
EUR
Balance as at 1 January 2022
35,673,300.00 87,453,866.21 3,567,330.00 688,346.92 124,914,492.68 6,499,115.32
Allocation of the result for the 2021
financial year following decision of
the General Meeting held on 31 May
2022
• Retained earnings
6,499,115.32 -6,499,115.32
Results for the financial year -37,542,749.31
Balance as at 31 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
Allocation of the result for the 2022
financial year following decision of
the General Meeting held on 30 May
2023
• Retained earnings
-37,542,749.31 37,542,749.31
Results for the financial year
2,658,855.71
Balance as at 31 December 2023
35,673,300.00 87,453,866.21 3,567,330.00 688,346.92 93,870,858.69 2,658,855.71
Issued capital
As at 31 December 2023 and 2022, the issued and fully paid share
capital is EUR 35,673,300 represented by 17,836,650 shares
without nominal value.
Share premium
As at 31 December 2023 and 2022, the share premium amounted
to EUR 87,453,866.
Legal reserve
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.
Company financial statements
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Note 5. Amounts owed to affiliated undertakings
As at 31 December 2023, this item consists mainly of:
- a debt to Socfin for a nominal amount of EUR
80,000,000 (2022: EUR 120,000,000), which bears a
fixed interest rate of 6.25%. The accrued interest
amounted EUR 1,250,000 (2022: EUR 510,000).
This debt is repayable early or at the latest on
10 November 2026. During the year, the company
has reimbursed an amount of EUR 40,000,000
to Socfin.
- during the year, the company has reimbursed an
amount of EUR 13,615,803 to Socfin
As at 31 December 2023 and 2022, the maturity of
debts to affiliated undertakings is as follows:
2023 2022
Amounts owed to affiliated undertakings: EUR EUR
becoming due and payable within one year 1,250,000 14,947,457
becoming due and payable between one to five years 80,000,000 120,000,000
81,250,000 134,947,457
Note 6. Amounts owed to undertakings with which the undertaking is linked by
virtue of participating interests:
As at 31 December 2023, this item consists mainly of:
- a payable to Bolloré Participations for a nominal
amount of EUR 20,000,000 (2022: EUR 20,000,000),
plus accrued interest in the amount of EUR 403,288
(2022: EUR 203,836). This debt bears interest at
a fixed rate of 6% per annum and is repayable on
demand with final maturity on 30 June 2025.
- a payable to Palmboomen Cultuur Maatschappij
“MOPOLI” for a nominal amount of EUR 20,000,000
(2022: EUR 20,000,000), plus accrued interest in the
amount of EUR 302,466 (2022: EUR 201,644). This
debt bears interest at a fixed rate of 6% per annum
and is repayable on demand with final maturity on
15 July 2026.
Note 7. Income from participating interests
2023 2022
EUR EUR
Dividends received
45,168,435 46,939,258
Capital gain on disposal of financial fixed assets (*)
5,013 18,750
45,173,448 46,958,008
(*) This amount corresponds to a remaining amount from prior year disposal.
Note 8. Income from other investments and loans forming part of the fixed
assets
2023 2022
EUR EUR
Interest on related companies’ receivables
5,872,854 7,273,634
Company financial statements
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Note 9. Taxation
The Company is subject to all taxes to which Luxembourgish commercial companies are subject.
The management of the Company recognizes based on the last filed tax return that the Company has
EUR 211,249,100 of carried forward tax losses available as at 31 December 2022 and estimates approximately
EUR 39,004,876 of additional tax losses for the current period (FY2023).
Regarding the portion of the aforementioned losses that have been generated as from tax year 2017 (approximately
EUR 32,835,876) that amount can be carried forward for the seventeen years following the tax year in which
the losses arose.
Note 10. Remuneration of the Board of Directors
During 2023, the members of the Board of Directors received EUR 7,500 (2022: EUR 9,062) as attendance fees
and EUR 230,000 (2022: EUR 230,000) as Directors’ fees.
During 2023, no advances or loans were granted to the Board members.
Note 11. Political and economic environment
Most of the investments are held directly or indirectly in companies operating in Africa, particularly in the
following countries:
- Sierra Leone,
- Liberia,
- Côte d’Ivoire,
- Ghana,
- Nigeria,
- São Tomé et Principe,
- Cameroon,
- Congo (DRC).
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.
Note 12. Off-balance sheet commitments
As at 31 December 2023 and 2022, the Company had no significant off-balance sheet commitments.
Note 13. Significant events after the year end
There are no significant post-closing events affecting the Company.
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Glossary
CIF Rotterdam - Cost Insurance & Freight Rotterdam,
corresponds to:
- Cost of the good/oil;
- Insurance cost for the whole consignment right from
port of loading until arrived and delivered;
- Freight : carrying cost from load port all the way up
to Rotterdam.
In other words, the seller pays for the goods,
transportation to the port of destination, and Marine
insurance.
CONCESSION - Contract, signed with local authorities,
giving specific rights to control an area of land and for
the conduct of specific activities in that area, during
a defined period.
CPO - Crude Palm Oil is edible oil which is extracted
from the pulp of fruit of oil palm trees.
CPKO - Crude Palm Kernel Oil is the light crude oil,
extracted from the Oil Palm kernels, containing
mainly lauric acid.
DAP – Delivered At Place is an international commercial
term (Incoterm), meaning that the seller takes on all
the risks and costs of delivering goods to an agreed-
upon location.
DRY RUBBER - This is weight of natural rubber
produced, determined at the end of the milling and
drying process. After tapping, liquid latex is dripping
from the rubber trees in the field, mostly harvested
after in-field coagulation. However, the “wet
rubber” still contains water and many other natural
components apart from the rubber particles. Natural
rubber is Marketed as “dry rubber” – after processing –
to be used in numerous industrial value chains among
which manufacturing of tyres is the most important.
EBIT - This abbreviation is defined as earnings before
financial result and tax. It is the result of ordinary
business activities and is used to assess operational
profitability.
EBITDA - This abbreviation is defined as earnings
before financial result, tax, depreciation and
amortisation. This key figure is used to assess
operational profitability.
ESEF - European Single Electronic Format is the
electronic reporting format in which issuers
whose securities are admitted to trading on EU
regulated Markets must prepare their annual financial
reports to facilitate accessibility, analysis and
comparability of annual financial reports.
EXW - Ex works is an Incoterm, in which a seller makes
a product directly available from the factory or place
of manufacture. The buyer of the product must cover
the transport costs.
FINISHED GOODS - Goods that have completed the
manufacturing process but have not yet been sold or
distributed to the end user (for example dry rubber,
crude palm oil, seeds, palm kernel oil, palm kernel
cake).
FOB - Free On Board is an Incoterm, which means the
seller is responsible for loading the purchased goods
onto the ship, and all costs associated. The point the
goods are safe aboard the vessel, the risk transfers
to the buyer, who assumes the responsibility of the
remainder of the transport.
FREE CASH FLOWS - The sum of cash flows arising
from operating activities and cash flows arising from
investing activities. Also referred to as cash flows
before financing activities. Free cash flows are used
to assess financial performance.
GPSNR - Global Platform for Sustainable Natural
Rubber. GPSNR is an international, multistakeholder,
voluntary membership organisation, with a mission
to lead improvements in the socioeconomic and
environmental performance of the natural rubber
value chain.
IAS - International Accounting Standards. Accounting
standards issued by the International Accounting
Standards Board (IASB), that have been replaced by
IFRS in 2001.
IFRS - International Financial Reporting Standards are
accounting rules for public companies, with the goal
of making company financial statements consistent,
transparent, and easily comparable around the
world. IFRS are issued by the IASB. IFRS include IAS
(older standards), the interpretations of the IFRS
Interpretations Committee or of the predecessor IFRIC
as well as the former SIC.
Glossary
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IRSG - International Rubber Study Group. It is an
inter-governmental organisation composed of rubber
producing and consuming stakeholders. Located in
Singapore, IRSG was established in 1944.
MARKET CAPITALISATION – Product of the number of
shares multiplied by the closing Market price.
NON-CONTROLLING INTEREST - Equity in a subsidiary
not attributable, directly or indirectly, to a parent.
NET VALUE PER SHARE – Equity attributable to the
owners of the Parent at closing period, divided by
the number of shares. Allows readers of the financial
statements to compare easily the share price at
closing period with its value within the financial
statements. As an example, value as at 31 December
2023 is obtained by dividing EUR 363,885,495 (value
of Equity attributable to the owners of the Parent) by
17,836,650 (number of shares).
OPERATIONAL LIFE – Length of time during which a
tangible or intangible asset can be used economically
before breakdown. Operational life does not include
post-closure activities. As an example, rubber and
palm trees have an estimated operational life between
20 and 33 years.
OTHER COMPREHENSIVE INCOME - Items of income
and expense (including reclassification adjustments)
that are not recognised in profit or loss as required or
permitted by other IFRSs.
OWN PRODUCTION - Quantities of raw materials
(Fresh Fruit Bunches, wet rubber, …) milled that have
been harvested on own plantations managed by the
Group.
PRODUCTION-IN-PROGRESS - Inventory that has begun
the manufacturing process and is no longer included in
raw materials inventory, but is not yet a completed
product. In the financial statements, production in
progress is classified within current assets, with other
items of inventory.
RAW MATERIALS - Raw materials are the input goods
or inventory that a company needs to manufacture
its products (for example Fresh Fruit Bunches, wet
rubber, …).
RIGHT OF USE ASSET - Asset that represents the
lessee’s right to use an underlying asset over the
duration of the lease.
RSS3 - Ribbed Smoked Sheet is rubber coagulated from
high quality natural rubber. Rubber is then processed
into sheet, dried, smoked, and visually graded. RSS3
rubber sheets are used in the production of tyres,
tread carcass, footwear, …
SGX - Singapore Exchange is Singapore’s primary
asset exchange. The SGX lists stocks, bonds,
options contracts, foreign currency exchanges
and commodities, representing in 2021 the largest
stock Market exchange in South-East Asia.
SEGMENTAL ASSETS / SEGMENTAL LIABILITIES -
Segmental assets and segmental liabilities are not
part of internal reporting, they are included to meet
the requirements of IFRS 8:
- Segmental assets include fixed assets, biological
assets, trade receivables, inventories, cash and cash
equivalents. They do not include any consolidation
nor IFRS adjustments;
- S egmental liabilities include only trade payables
and other payables. They do not include any
consolidation nor IFRS adjustments.
SMOKED SHEET - It is a type of crude natural rubber
in the form of brown sheets obtained by coagulating
latex with an acid, rolling it into sheets, and drying
over open wood fires. It is the main raw material
for natural rubber products. Also called: ribbed and
smoked sheet.
SOFR - The Secured Overnight Financing Rate (SOFR)
is a broad measure of the cost of borrowing cash
overnight collateralised by United States Treasury
securities
SOPARFI - SOciété de PARticipations FInancières.
SOPARFIs are fully taxable ordinary commercial
companies, whose corporate purpose consists in
the holding of participations and related financing
activities.
Glossary
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SPPI - Solely Payments of Principal and Interest. It
is in the context of IFRS 9 one of the two required
conditions for classifying an instrument at amortised
cost. It specifies that the contractual terms of the
lending agreement gives rise on specified dates of
contractual cash flows that are either:
- repayments of the borrowed principal or,
- interest on the principal amount outstanding.
TAPPER - Agricultural worker trained and qualified to
“tap” a tree with a special knife. Trees are tapped at
regular interval (4-7 days), releasing the latex from
the latex vessels situated in the soft outer bark of the
tree.
THIRD PARTY PURCHASES - Business deal that involves
a person or entity other than a Group company.
Typically, third-party purchases are made with small
local growers.
TRADING ACTIVITIES – The activity of selling, buying
or exchanging goods and services in order to generate
profit. This commercial activity is mainly centralised
within Sogescol FR.
TSR20 - Technically Specified Rubber graded
corresponds to block rubber made by crashing, cleaning
and drying solid rubber. Major producing countries
have their own TSR standard (STR in Thailand, SIR in
Indonesia, …). TSR are graded according to a variety
of factors, including volatile matter, ash content,
color, viscosity, …
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