ACOMO N.V. (\u2018Acomo\u2019 or \u2018the Company\u2019) is a public limited liability company incorporated and domiciled in the Netherlands and registered in the Netherlands, Chamber of Commerce number: 24191858. The address of the Company's registered office is Beursplein 37, 3011 AA Rotterdam, the Netherlands. The consolidated financial statements of the Company as at and for the year ended 31 December 2023 comprise the Company and its subsidiaries (together referred to as the \u2018Group\u2019 and individually as \u2018Group entities\u2019). The Company is acting as the parent company of the ACOMO Group, an international group of companies active in the sourcing, trading, processing, packaging and distribution of natural food ingredients and solutions for the food and beverage industry. The Group\u2019s product portfolio broadly encompasses spices, coconut products, nuts, dried fruits, edible seeds, tea, (organic) cocoa, (organic) coffee, edible oils, food ingredients and food solutions. Acomo is listed on the Amsterdam stock exchange (Euronext Amsterdam, AEX: ACOMO).
\nThese financial statements were approved by the Board of Directors on 8 March 2024.
\nThe Management Board report as defined by Article 391 of Book 2 of the Dutch Civil Code is constituted by the following parts of the annual report: At a Glance; Key Data; Letter from the Executive Director; The Acomo Group; How we create value; Environmental, Social and Governance; The Board of Directors; Corporate Governance; Risk Management and Control; Remuneration Report; The Acomo Share; Business Performance; Information Takeover Directive Decree; Five-Year Overview; and EU Taxonomy table.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-0": { "value": "ACOMO N.V.", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-2": { "value": "public limited liability company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-3": { "value": "the Netherlands", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-1": { "value": "the Netherlands", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-4": { "value": "Beursplein 37, 3011 AA RotterdamBeursplein 37, 3011 AA Rotterdam", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-6": { "value": "the Netherlands", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-7": { "value": "international group of companies active in the sourcing, trading, processing, packaging and distribution of natural food ingredients and solutions for the food and beverage industry. The Group\u2019s product portfolio broadly encompasses spices, coconut products, nuts, dried fruits, edible seeds, tea, (organic) cocoa, (organic) coffee, edible oils, food ingredients and food solutions.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-383": { "value": "\nThese financial statements were approved by the Board of Directors on 8 March 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-384": { "value": "\nThe principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
\nThe consolidated financial statements of Acomo have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. They also comply with the financial reporting standards included in Title 9 of Book 2 of the Dutch Civil Code when applicable. The consolidated financial statements are presented in thousands of euros unless otherwise stated and have been prepared under the historical cost convention unless otherwise stated. The consolidated financial statements have been prepared on a going concern basis. The areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.
\nThe Group has applied the following standards and amendments for the first time for its annual reporting period commencing 1 January 2023:
IFRS 17 Insurance Contracts;
Definition of Accounting Estimates \u2013 amendments to IAS 8;
International Tax Reform \u2013 Pillar Two Model Rules \u2013 amendments to IAS 12.
The Group also elected to adopt the following amendments early:
Amendments to IAS 1 \u2013 Classification of Liabilities as Current or Non-current; and
Amendments to IAS 1 \u2013 Non-current Liabilities with Covenants.
The amendments listed above did not have any impact on the amounts recognized in prior and current periods and are not expected to significantly affect future periods.
\nCertain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2023 reporting period and have not yet been adopted by the Group. These standards are not expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.
\nSubsidiaries are all those entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date that control is transferred to the Company until the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement.
\nIdentifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred.
\nIntercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
\nTransactions with non-controlling interests that do not result in a loss of control are accounted for as equity transactions. Gains or losses on disposals to non-controlling interests are also recorded in equity.
\nIn the 2023 consolidated financial statements, the Company and the following subsidiaries are included:
\n| \u00a0 | \u00a0 | Percentage of ownership | |
|---|---|---|---|
Subsidiaries | City and country of incorporation | 2023 | 2022 |
Acomo European Nuts Holding B.V. | Bodegraven, the Netherlands | 100% | 100% |
Acomo Food Ingredients Holding B.V. | Rotterdam, the Netherlands | 100% | 100% |
Acomo Investments B.V. | Rotterdam, the Netherlands | 100% | 100% |
Acomo North American Commodities B.V. | Rotterdam, the Netherlands | 100% | 100% |
Acomo Seeds Holding B.V. | Etten-Leur, the Netherlands | 100% | 100% |
Acomo US Holdings LLC | Dover (DE), USA | 100% | 100% |
Food Ingredients Service Center Europe B.V. | Etten-Leur, the Netherlands | 100% | 100% |
Red River-van Eck B.V. | Etten-Leur, the Netherlands | 100% | 100% |
Red River Bulgaria EOOD | Varna, Bulgaria | - | 100% |
Red River Commodities Inc. | Fargo (ND), USA | 100% | 100% |
Red River Global Ingredients Ltd. | Winkler, Canada | 100% | 100% |
Red River Commodities International Inc. | Fargo (ND), USA | 100% | 100% |
SunGold Foods Inc. | Fargo (ND), USA | 100% | 100% |
SunButter LLC | Fargo (ND), USA | 100% | 100% |
SIGCO Warenhandelsgesellschaft mbH | Hamburg, Germany | 100% | 100% |
Snick EuroIngredients N.V. | Ruddervoorde, Belgium | 100% | 100% |
Catz International B.V. | Rotterdam, the Netherlands | 100% | 100% |
Delinuts B.V. | Ede, the Netherlands | 100% | 100% |
King Nuts B.V. | Bodegraven, the Netherlands | 100% | 100% |
Tovano B.V. | Maasdijk, the Netherlands | 100% | 100% |
Van Rees Group B.V. | Rotterdam, the Netherlands | 100% | 100% |
Van Rees India B.V. | Rotterdam, the Netherlands | 100% | 100% |
P.T. Van Rees Indonesia | Jakarta, Indonesia | 100% | 100% |
Van Rees Kenya Ltd. | Mombasa, Kenya | 100% | 100% |
Van Rees B.V. | Rotterdam, the Netherlands | 100% | 100% |
Van Rees North America Inc. | Toronto, Canada | 100% | 100% |
Van Rees LLC | Moscow, Russia | 100% | 100% |
Van Rees Ceylon Ltd. | Peliyagoda, Sri Lanka | 100% | 100% |
Van Rees Ceylon B.V. | Rotterdam, the Netherlands | 100% | 100% |
Van Rees Middle East Ltd. | Dubai, United Arab Emirates | 100% | 100% |
Van Rees United Kingdom Ltd. | Altrincham, United Kingdom | 100% | 100% |
Van Rees India Private Ltd. | Coimbatore, India | 90% | 90% |
The Organic Corporation B.V. | Amsterdam, the Netherlands | 100% | 100% |
Crown of Holland B.V. | Middenmeer, the Netherlands | 100% | 100% |
Organic Development Services B.V. | Amsterdam, the Netherlands | 100% | 100% |
Organic Land Corporation EOOD | Varna, Bulgaria | 100% | 100% |
Organic Raw Materials SAS | Cavaillon, France | 100% | 100% |
Sanmark B.V. | Amsterdam, the Netherlands | 100% | 100% |
Suncomo Foods Bulgaria EOOD | Varna, Bulgaria | 100% | 100% |
SunAvo B.V. | Amsterdam, the Netherlands | 87.5% | 87.5% |
SunVado Manufacturing Plc | Addis Ababa, Ethiopia | 100% | 100% |
Supreme Smallholders Coffee LLC | Addis Ababa, Ethiopia | 52% | 52% |
Trabocca B.V. | Amsterdam, the Netherlands | 65% | 65% |
Tradin Organic Agriculture B.V. | Amsterdam, the Netherlands | 100% | 100% |
Tradin Organic Cocoa B.V. | Amsterdam, the Netherlands | 100% | 100% |
Tradin Organics USA LLC | Aptos (CA), USA | 100% | 100% |
Tradin Sierra Leone Ltd. | Kenema, Sierra Leone | 100% | 100% |
Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Currently the Group has no associates.
\nOperating segments are reported in a manner consistent with the internal reporting provided to the Acomo Board of Directors (\u2018The Board\u2019). The Board is responsible for the allocation of the available resources, the assessment of the operational results and strategic decisions. The Board assesses the performance of the reporting segments based on a measure of adjusted profit before tax. This measurement basis excludes the effects of non-recurring expenditures from the operating segments such as restructuring costs, legal expenses and goodwill impairments when the impairment is the result of an isolated, non-recurring event. The Company has determined that Spices and Nuts, Edible Seeds, Organic Ingredients, Tea, and Food Solutions represent the reportable segments for the Group. These reportable segments have been determined by aggregation of a number of operating segments that meet the aggregation criteria as described in IFRS 8 (similar economic characteristics and similar nature of products) into reportable segments. The segment information is disclosed in Note 5.
\nItems included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The consolidated financial statements are presented in euros, the Company\u2019s functional and presentation currency. All financial information presented has been rounded to the nearest thousand unless otherwise stated.
\nForeign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income.
\nTranslation differences on non-monetary financial assets are included in other comprehensive income (OCI). Foreign exchange gains and losses that relate to borrowings are presented in the statement of income, within finance costs. All other foreign exchange gains and losses are presented in the statement of income on a net basis within other income or other expenses.
\nThe results and financial position of all the Group\u2019s entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;
Income and expenses for each income statement are translated at average exchange rates unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions; and
All resulting exchange differences are recognized in OCI.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowings designated as hedges of such investments, are taken to OCI. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in equity are recognized in the income statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. The resulting changes are recognized in OCI.
\nGoodwill represents the excess of the consideration transferred of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired business at the date of acquisition. For the purpose of impairment testing, goodwill is allocated to cash-generating units (CGUs), being the parts of the operating segments benefitting from the business combination in which the goodwill arose. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.
\nGoodwill is not amortized, but goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value in use and fair value less costs of disposal. Any impairment is recognized immediately as an expense and is not subsequently reversed.
\nCosts related to the development and installation of software are capitalized at historical cost and amortized, using the straight-line method over the estimated useful life (3-10 years).
\nOther intangible assets include acquired customer relations, order books and trade names/certificates. Intangible assets that are acquired through business combinations are initially valued at fair value. This fair value is subsequently treated as deemed cost. These identifiable intangibles are then amortized using the straight-line method over the estimated useful life.
\nThe useful lives of the following categories are used for amortization purposes:
\n| \u00a0 | \u00a0 |
Customer relations | 10-20 years |
Order books | 1-2 years |
Trade names/certificates | 20-40 years |
| \u00a0 |
Property, plant and equipment are valued at historical cost using a component approach less depreciation and impairment losses. In addition to the costs of acquisition, the Company also includes costs of bringing the asset to its working condition, handling and installation costs and the non-refundable purchase taxes. Under the component approach, each component of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.
\nDepreciation is calculated using the straight-line method based on the estimated useful life, taking into account any residual value. The asset\u2019s residual value and useful life are reviewed and adjusted, if appropriate, at each balance sheet date. Subsequent costs are included in the asset\u2019s carrying amount or recognized as a separate asset as appropriate, only if and when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Land is not depreciated.
\nThe useful lives of the following categories are used for depreciation purposes:
\n| \u00a0 | \u00a0 |
Buildings | 20-30 years |
Building improvements | 5-10 years |
Machinery and equipment | 5-15 years |
Vehicles | 3-5 years |
Furniture, fittings and equipment | 3-8 years |
An asset\u2019s carrying amount is written down immediately to its recoverable amount if the asset\u2019s carrying amount exceeds its estimated recoverable amount (Note 2.8). Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the income statement.
\nAn impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). An impairment loss will be reversed if there is a change in the estimates used to determine the recoverable amount of the assets since the last impairment loss was recognized. The net book amount of the asset will be increased to its recoverable amount. Goodwill is never subject to reversion of impairment losses recognized.
\nDerivative financial instruments include forward currency contracts and commodity futures. These are used to manage the Group\u2019s exposure to risks associated with foreign currency and commodity price fluctuations. Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.
\nAny gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the effective portion of cash flow hedges, which is recognized in OCI and later reclassified to profit or loss when the hedged item affects profit or loss.
\nAll operating companies are required to hedge their foreign exchange exposure related to transactions against their functional currency. The Group discontinues hedge accounting when the qualifying criteria for the hedged relationship are no longer met. At the moment only the Tea segment applies hedge accounting.
\nFor the purpose of hedge accounting, IFRS 9 has been applied. Hedges are classified as cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment transaction (cash flow hedge).
\nAt the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. Hedges that are expected to be highly effective in achieving offsetting changes in cash flows are assessed on an ongoing basis to determine if they actually have been highly effective throughout the financial reporting periods for which they were designated.
\nHedges which meet the strict criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in OCI in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of income within cost of goods sold.
Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when a forecast sale occurs.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognized in OCI remains separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement.
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods and semi-finished products comprises raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity), but excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.
\nTrade receivables are amounts due from customers for goods sold in the ordinary course of business. Trade receivables and other receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment, taking into account expected credit losses. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.
\nTrade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables and other short-term monetary liabilities are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method. If payment is due within one year or less, they are classified as current liabilities. If not, they are presented as non-current liabilities.
\nCash and cash equivalents include cash at banks and on hand and short-term highly liquid investments with an original maturity of three months or less. Bank overdrafts are shown within Borrowings in current liabilities in the consolidated balance sheet.
\nNon-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of the carrying amount and fair value less costs to sell. Assets held for sale are no longer amortized or depreciated from the date they are classified as such.
\nOrdinary issued shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are charged to the share premium reserve as a deduction, net of tax, from the proceeds.
\nBorrowings are recognized initially at fair value, net of transaction costs incurred. Subsequently, borrowings are carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Fees paid in connection to new loan facilities are recognized as transaction costs of the loan. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.
\nThe Group assesses whether a contract is or contains a lease at inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
\nThe lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.
\nLease payments included in the measurement of the lease liability comprise:
Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
The amount expected to be payable by the lessee under residual value guarantees;
The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
\nThe lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case
\nthe lease liability is remeasured by discounting the revised lease payments using a revised discount rate;
The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used); and
A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.
The Group did not make any such adjustments during the periods presented.
\nThe right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.
\nWhenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured as described in Note 2.20. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.
\nRight-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
\nThe Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in Note 2.8, Impairment of non-financial assets.
\nIncome tax comprises current and deferred tax. Income tax is recognized in the statement of income except to the extent that it relates to items recognized directly within equity or in OCI. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income, and any adjustment to tax payable in respect of previous years.
\nManagement periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
\nDeferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.
\nDeferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
\nDeferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.
\nDeferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
\nDeferred tax liabilities for withholding taxes are recognized for subsidiaries in situations where the income is to be paid out as dividend in the foreseeable future to the extent that these withholding taxes are not expected to be refundable or deductible. Changes in tax rates are reflected in the period when the change has been enacted or substantially enacted by the reporting date.
\nGroup companies operate various pension schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Group has one defined benefit plan and various defined contribution plans.
\nA defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The contributions are recognized as personnel expenses when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.
\nA defined benefit plan typically defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method.
\nRemeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding net interest (not applicable to the Group) and the return on plan assets (excluding net interest), are recognized immediately in the statement of financial position with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
\nPast service costs are recognized in income on the earlier of the date of the plan amendment or curtailment, and the date that the Group recognizes restructuring-related costs. Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
\nShort-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. The Group recognizes a liability and an expense for bonuses and profit sharing based on a percentage (generally 10% - 15%) of the profit before tax of the respective subsidiary. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
\nOn 1 September 2010, the Group introduced an equity-settled share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the Company.
\nThe fair value of the employee services received in exchange for the grant of the options is recognized as an expense in the income statement, with a corresponding adjustment to equity. The total amount to be expensed is determined by reference to the fair value of the options granted as measured at the date of grant.
\nNon-market vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognizes the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity.
\nWhen the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
\nProvisions are recognized when the Group has a legal or constructive obligation as a result of a past event, when it is probable that an outflow of economic benefits will be required to settle the obligation and when a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as interest expense (when the time value of money is material).
\nAn onerous contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract. Present obligations arising under onerous contracts are recognized and measured as provisions.
\nRevenue relates to the sale of goods and services in the ordinary course of the Group\u2019s activities. Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating sales within the Group. Revenue is recognized when the performance obligations have been satisfied, which is once control of the goods and/or services has transferred from the Group to the buyer. Revenue is measured based on considerations specified in the contract with a customer and excludes amounts collected on behalf of third parties.
\nSales of goods are recognized when a Group entity satisfies a performance obligation by transferring promised products to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer\u2019s acceptance of the products. Delivery normally does not occur until the products have been shipped to the specified location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed or the Group has objective evidence that all criteria for acceptance have been satisfied. Sales are recorded based on the prices specified in the sales contracts.
\nRevenue is recognized in the (limited) cases when certain client specific goods have been created by processing and packaging, that do not have an alternative use to the Group, even when the finished goods have not been physically shipped and invoiced yet, in accordance with IFRS 15.
\nInterest income is recognized using the effective interest method. When a loan or receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans and receivables is recognized using the original effective interest rate.
\nIf applicable, dividend income is recognized when the right to receive payment has been established, which is generally when shareholders approve the dividend.
\nCost of goods sold is recorded in the same period in which the sales are recognized.
\nGross profit represents the difference between sales and cost of goods sold.
\nGeneral and administrative expenses are allocated to the periods to which they relate.
\nDividend distribution to the Company\u2019s shareholders is recognized as a liability in the Company\u2019s financial statements in the period in which the dividends are approved by the Company\u2019s shareholders.
\nThe statement of cash flows is prepared using the indirect method. Cash flows in foreign currencies are translated into euros using the weighted average rates of exchange for the periods involved.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-385": { "value": "\nThe consolidated financial statements of Acomo have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. They also comply with the financial reporting standards included in Title 9 of Book 2 of the Dutch Civil Code when applicable. The consolidated financial statements are presented in thousands of euros unless otherwise stated and have been prepared under the historical cost convention unless otherwise stated. The consolidated financial statements have been prepared on a going concern basis. The areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-386": { "value": "\nThe consolidated financial statements of Acomo have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. They also comply with the financial reporting standards included in Title 9 of Book 2 of the Dutch Civil Code when applicable. The consolidated financial statements are presented in thousands of euros unless otherwise stated and have been prepared under the historical cost convention unless otherwise stated. The consolidated financial statements have been prepared on a going concern basis. The areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-387": { "value": "\nSubsidiaries are all those entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date that control is transferred to the Company until the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement.
\nIdentifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred.
\nIntercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
\nTransactions with non-controlling interests that do not result in a loss of control are accounted for as equity transactions. Gains or losses on disposals to non-controlling interests are also recorded in equity.
\nIn the 2023 consolidated financial statements, the Company and the following subsidiaries are included:
\n| \u00a0 | \u00a0 | Percentage of ownership | |
|---|---|---|---|
Subsidiaries | City and country of incorporation | 2023 | 2022 |
Acomo European Nuts Holding B.V. | Bodegraven, the Netherlands | 100% | 100% |
Acomo Food Ingredients Holding B.V. | Rotterdam, the Netherlands | 100% | 100% |
Acomo Investments B.V. | Rotterdam, the Netherlands | 100% | 100% |
Acomo North American Commodities B.V. | Rotterdam, the Netherlands | 100% | 100% |
Acomo Seeds Holding B.V. | Etten-Leur, the Netherlands | 100% | 100% |
Acomo US Holdings LLC | Dover (DE), USA | 100% | 100% |
Food Ingredients Service Center Europe B.V. | Etten-Leur, the Netherlands | 100% | 100% |
Red River-van Eck B.V. | Etten-Leur, the Netherlands | 100% | 100% |
Red River Bulgaria EOOD | Varna, Bulgaria | - | 100% |
Red River Commodities Inc. | Fargo (ND), USA | 100% | 100% |
Red River Global Ingredients Ltd. | Winkler, Canada | 100% | 100% |
Red River Commodities International Inc. | Fargo (ND), USA | 100% | 100% |
SunGold Foods Inc. | Fargo (ND), USA | 100% | 100% |
SunButter LLC | Fargo (ND), USA | 100% | 100% |
SIGCO Warenhandelsgesellschaft mbH | Hamburg, Germany | 100% | 100% |
Snick EuroIngredients N.V. | Ruddervoorde, Belgium | 100% | 100% |
Catz International B.V. | Rotterdam, the Netherlands | 100% | 100% |
Delinuts B.V. | Ede, the Netherlands | 100% | 100% |
King Nuts B.V. | Bodegraven, the Netherlands | 100% | 100% |
Tovano B.V. | Maasdijk, the Netherlands | 100% | 100% |
Van Rees Group B.V. | Rotterdam, the Netherlands | 100% | 100% |
Van Rees India B.V. | Rotterdam, the Netherlands | 100% | 100% |
P.T. Van Rees Indonesia | Jakarta, Indonesia | 100% | 100% |
Van Rees Kenya Ltd. | Mombasa, Kenya | 100% | 100% |
Van Rees B.V. | Rotterdam, the Netherlands | 100% | 100% |
Van Rees North America Inc. | Toronto, Canada | 100% | 100% |
Van Rees LLC | Moscow, Russia | 100% | 100% |
Van Rees Ceylon Ltd. | Peliyagoda, Sri Lanka | 100% | 100% |
Van Rees Ceylon B.V. | Rotterdam, the Netherlands | 100% | 100% |
Van Rees Middle East Ltd. | Dubai, United Arab Emirates | 100% | 100% |
Van Rees United Kingdom Ltd. | Altrincham, United Kingdom | 100% | 100% |
Van Rees India Private Ltd. | Coimbatore, India | 90% | 90% |
The Organic Corporation B.V. | Amsterdam, the Netherlands | 100% | 100% |
Crown of Holland B.V. | Middenmeer, the Netherlands | 100% | 100% |
Organic Development Services B.V. | Amsterdam, the Netherlands | 100% | 100% |
Organic Land Corporation EOOD | Varna, Bulgaria | 100% | 100% |
Organic Raw Materials SAS | Cavaillon, France | 100% | 100% |
Sanmark B.V. | Amsterdam, the Netherlands | 100% | 100% |
Suncomo Foods Bulgaria EOOD | Varna, Bulgaria | 100% | 100% |
SunAvo B.V. | Amsterdam, the Netherlands | 87.5% | 87.5% |
SunVado Manufacturing Plc | Addis Ababa, Ethiopia | 100% | 100% |
Supreme Smallholders Coffee LLC | Addis Ababa, Ethiopia | 52% | 52% |
Trabocca B.V. | Amsterdam, the Netherlands | 65% | 65% |
Tradin Organic Agriculture B.V. | Amsterdam, the Netherlands | 100% | 100% |
Tradin Organic Cocoa B.V. | Amsterdam, the Netherlands | 100% | 100% |
Tradin Organics USA LLC | Aptos (CA), USA | 100% | 100% |
Tradin Sierra Leone Ltd. | Kenema, Sierra Leone | 100% | 100% |
Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Currently the Group has no associates.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-388": { "value": "\nSubsidiaries are all those entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date that control is transferred to the Company until the date that control ceases. The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement.
\nIdentifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred.
\nIntercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
\nTransactions with non-controlling interests that do not result in a loss of control are accounted for as equity transactions. Gains or losses on disposals to non-controlling interests are also recorded in equity.
\nIn the 2023 consolidated financial statements, the Company and the following subsidiaries are included:
\n| \u00a0 | \u00a0 | Percentage of ownership | |
|---|---|---|---|
Subsidiaries | City and country of incorporation | 2023 | 2022 |
Acomo European Nuts Holding B.V. | Bodegraven, the Netherlands | 100% | 100% |
Acomo Food Ingredients Holding B.V. | Rotterdam, the Netherlands | 100% | 100% |
Acomo Investments B.V. | Rotterdam, the Netherlands | 100% | 100% |
Acomo North American Commodities B.V. | Rotterdam, the Netherlands | 100% | 100% |
Acomo Seeds Holding B.V. | Etten-Leur, the Netherlands | 100% | 100% |
Acomo US Holdings LLC | Dover (DE), USA | 100% | 100% |
Food Ingredients Service Center Europe B.V. | Etten-Leur, the Netherlands | 100% | 100% |
Red River-van Eck B.V. | Etten-Leur, the Netherlands | 100% | 100% |
Red River Bulgaria EOOD | Varna, Bulgaria | - | 100% |
Red River Commodities Inc. | Fargo (ND), USA | 100% | 100% |
Red River Global Ingredients Ltd. | Winkler, Canada | 100% | 100% |
Red River Commodities International Inc. | Fargo (ND), USA | 100% | 100% |
SunGold Foods Inc. | Fargo (ND), USA | 100% | 100% |
SunButter LLC | Fargo (ND), USA | 100% | 100% |
SIGCO Warenhandelsgesellschaft mbH | Hamburg, Germany | 100% | 100% |
Snick EuroIngredients N.V. | Ruddervoorde, Belgium | 100% | 100% |
Catz International B.V. | Rotterdam, the Netherlands | 100% | 100% |
Delinuts B.V. | Ede, the Netherlands | 100% | 100% |
King Nuts B.V. | Bodegraven, the Netherlands | 100% | 100% |
Tovano B.V. | Maasdijk, the Netherlands | 100% | 100% |
Van Rees Group B.V. | Rotterdam, the Netherlands | 100% | 100% |
Van Rees India B.V. | Rotterdam, the Netherlands | 100% | 100% |
P.T. Van Rees Indonesia | Jakarta, Indonesia | 100% | 100% |
Van Rees Kenya Ltd. | Mombasa, Kenya | 100% | 100% |
Van Rees B.V. | Rotterdam, the Netherlands | 100% | 100% |
Van Rees North America Inc. | Toronto, Canada | 100% | 100% |
Van Rees LLC | Moscow, Russia | 100% | 100% |
Van Rees Ceylon Ltd. | Peliyagoda, Sri Lanka | 100% | 100% |
Van Rees Ceylon B.V. | Rotterdam, the Netherlands | 100% | 100% |
Van Rees Middle East Ltd. | Dubai, United Arab Emirates | 100% | 100% |
Van Rees United Kingdom Ltd. | Altrincham, United Kingdom | 100% | 100% |
Van Rees India Private Ltd. | Coimbatore, India | 90% | 90% |
The Organic Corporation B.V. | Amsterdam, the Netherlands | 100% | 100% |
Crown of Holland B.V. | Middenmeer, the Netherlands | 100% | 100% |
Organic Development Services B.V. | Amsterdam, the Netherlands | 100% | 100% |
Organic Land Corporation EOOD | Varna, Bulgaria | 100% | 100% |
Organic Raw Materials SAS | Cavaillon, France | 100% | 100% |
Sanmark B.V. | Amsterdam, the Netherlands | 100% | 100% |
Suncomo Foods Bulgaria EOOD | Varna, Bulgaria | 100% | 100% |
SunAvo B.V. | Amsterdam, the Netherlands | 87.5% | 87.5% |
SunVado Manufacturing Plc | Addis Ababa, Ethiopia | 100% | 100% |
Supreme Smallholders Coffee LLC | Addis Ababa, Ethiopia | 52% | 52% |
Trabocca B.V. | Amsterdam, the Netherlands | 65% | 65% |
Tradin Organic Agriculture B.V. | Amsterdam, the Netherlands | 100% | 100% |
Tradin Organic Cocoa B.V. | Amsterdam, the Netherlands | 100% | 100% |
Tradin Organics USA LLC | Aptos (CA), USA | 100% | 100% |
Tradin Sierra Leone Ltd. | Kenema, Sierra Leone | 100% | 100% |
Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Currently the Group has no associates.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-390": { "value": "\nOperating segments are reported in a manner consistent with the internal reporting provided to the Acomo Board of Directors (\u2018The Board\u2019). The Board is responsible for the allocation of the available resources, the assessment of the operational results and strategic decisions. The Board assesses the performance of the reporting segments based on a measure of adjusted profit before tax. This measurement basis excludes the effects of non-recurring expenditures from the operating segments such as restructuring costs, legal expenses and goodwill impairments when the impairment is the result of an isolated, non-recurring event. The Company has determined that Spices and Nuts, Edible Seeds, Organic Ingredients, Tea, and Food Solutions represent the reportable segments for the Group. These reportable segments have been determined by aggregation of a number of operating segments that meet the aggregation criteria as described in IFRS 8 (similar economic characteristics and similar nature of products) into reportable segments. The segment information is disclosed in Note 5.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-391": { "value": "\nItems included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The consolidated financial statements are presented in euros, the Company\u2019s functional and presentation currency. All financial information presented has been rounded to the nearest thousand unless otherwise stated.
\nForeign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income.
\nTranslation differences on non-monetary financial assets are included in other comprehensive income (OCI). Foreign exchange gains and losses that relate to borrowings are presented in the statement of income, within finance costs. All other foreign exchange gains and losses are presented in the statement of income on a net basis within other income or other expenses.
\nThe results and financial position of all the Group\u2019s entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;
Income and expenses for each income statement are translated at average exchange rates unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions; and
All resulting exchange differences are recognized in OCI.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowings designated as hedges of such investments, are taken to OCI. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in equity are recognized in the income statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. The resulting changes are recognized in OCI.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-392": { "value": "\nItems included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u2018the functional currency\u2019). The consolidated financial statements are presented in euros, the Company\u2019s functional and presentation currency. All financial information presented has been rounded to the nearest thousand unless otherwise stated.
\nForeign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of income.
\nTranslation differences on non-monetary financial assets are included in other comprehensive income (OCI). Foreign exchange gains and losses that relate to borrowings are presented in the statement of income, within finance costs. All other foreign exchange gains and losses are presented in the statement of income on a net basis within other income or other expenses.
\nThe results and financial position of all the Group\u2019s entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;
Income and expenses for each income statement are translated at average exchange rates unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions; and
All resulting exchange differences are recognized in OCI.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations, and of borrowings designated as hedges of such investments, are taken to OCI. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in equity are recognized in the income statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. The resulting changes are recognized in OCI.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-393": { "value": "\nGoodwill represents the excess of the consideration transferred of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired business at the date of acquisition. For the purpose of impairment testing, goodwill is allocated to cash-generating units (CGUs), being the parts of the operating segments benefitting from the business combination in which the goodwill arose. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.
\nGoodwill is not amortized, but goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value in use and fair value less costs of disposal. Any impairment is recognized immediately as an expense and is not subsequently reversed.
\nCosts related to the development and installation of software are capitalized at historical cost and amortized, using the straight-line method over the estimated useful life (3-10 years).
\nOther intangible assets include acquired customer relations, order books and trade names/certificates. Intangible assets that are acquired through business combinations are initially valued at fair value. This fair value is subsequently treated as deemed cost. These identifiable intangibles are then amortized using the straight-line method over the estimated useful life.
\nThe useful lives of the following categories are used for amortization purposes:
\n| \u00a0 | \u00a0 |
Customer relations | 10-20 years |
Order books | 1-2 years |
Trade names/certificates | 20-40 years |
| \u00a0 |
Goodwill represents the excess of the consideration transferred of an acquisition over the fair value of the Group\u2019s share of the net identifiable assets of the acquired business at the date of acquisition. For the purpose of impairment testing, goodwill is allocated to cash-generating units (CGUs), being the parts of the operating segments benefitting from the business combination in which the goodwill arose. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.
\nGoodwill is not amortized, but goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value in use and fair value less costs of disposal. Any impairment is recognized immediately as an expense and is not subsequently reversed.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-395": { "value": "\nCosts related to the development and installation of software are capitalized at historical cost and amortized, using the straight-line method over the estimated useful life (3-10 years).
\nOther intangible assets include acquired customer relations, order books and trade names/certificates. Intangible assets that are acquired through business combinations are initially valued at fair value. This fair value is subsequently treated as deemed cost. These identifiable intangibles are then amortized using the straight-line method over the estimated useful life.
\nThe useful lives of the following categories are used for amortization purposes:
\n| \u00a0 | \u00a0 |
Customer relations | 10-20 years |
Order books | 1-2 years |
Trade names/certificates | 20-40 years |
| \u00a0 |
Costs related to the development and installation of software are capitalized at historical cost and amortized, using the straight-line method over the estimated useful life (3-10 years).
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProgrammingAssetsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-401": { "value": "\nProperty, plant and equipment are valued at historical cost using a component approach less depreciation and impairment losses. In addition to the costs of acquisition, the Company also includes costs of bringing the asset to its working condition, handling and installation costs and the non-refundable purchase taxes. Under the component approach, each component of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.
\nDepreciation is calculated using the straight-line method based on the estimated useful life, taking into account any residual value. The asset\u2019s residual value and useful life are reviewed and adjusted, if appropriate, at each balance sheet date. Subsequent costs are included in the asset\u2019s carrying amount or recognized as a separate asset as appropriate, only if and when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Land is not depreciated.
\nThe useful lives of the following categories are used for depreciation purposes:
\n| \u00a0 | \u00a0 |
Buildings | 20-30 years |
Building improvements | 5-10 years |
Machinery and equipment | 5-15 years |
Vehicles | 3-5 years |
Furniture, fittings and equipment | 3-8 years |
An asset\u2019s carrying amount is written down immediately to its recoverable amount if the asset\u2019s carrying amount exceeds its estimated recoverable amount (Note 2.8). Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-402": { "value": "\nAn impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). An impairment loss will be reversed if there is a change in the estimates used to determine the recoverable amount of the assets since the last impairment loss was recognized. The net book amount of the asset will be increased to its recoverable amount. Goodwill is never subject to reversion of impairment losses recognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-403": { "value": "\nAn impairment loss is recognized for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). An impairment loss will be reversed if there is a change in the estimates used to determine the recoverable amount of the assets since the last impairment loss was recognized. The net book amount of the asset will be increased to its recoverable amount. Goodwill is never subject to reversion of impairment losses recognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-404": { "value": "\nDerivative financial instruments include forward currency contracts and commodity futures. These are used to manage the Group\u2019s exposure to risks associated with foreign currency and commodity price fluctuations. Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.
\nAny gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the effective portion of cash flow hedges, which is recognized in OCI and later reclassified to profit or loss when the hedged item affects profit or loss.
\nAll operating companies are required to hedge their foreign exchange exposure related to transactions against their functional currency. The Group discontinues hedge accounting when the qualifying criteria for the hedged relationship are no longer met. At the moment only the Tea segment applies hedge accounting.
\nFor the purpose of hedge accounting, IFRS 9 has been applied. Hedges are classified as cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment transaction (cash flow hedge).
\nAt the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. Hedges that are expected to be highly effective in achieving offsetting changes in cash flows are assessed on an ongoing basis to determine if they actually have been highly effective throughout the financial reporting periods for which they were designated.
\nHedges which meet the strict criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in OCI in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of income within cost of goods sold.
Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when a forecast sale occurs.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognized in OCI remains separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement.
Derivative financial instruments include forward currency contracts and commodity futures. These are used to manage the Group\u2019s exposure to risks associated with foreign currency and commodity price fluctuations. Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.
\nAny gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the effective portion of cash flow hedges, which is recognized in OCI and later reclassified to profit or loss when the hedged item affects profit or loss.
\nAll operating companies are required to hedge their foreign exchange exposure related to transactions against their functional currency. The Group discontinues hedge accounting when the qualifying criteria for the hedged relationship are no longer met. At the moment only the Tea segment applies hedge accounting.
\nFor the purpose of hedge accounting, IFRS 9 has been applied. Hedges are classified as cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment transaction (cash flow hedge).
\nAt the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. Hedges that are expected to be highly effective in achieving offsetting changes in cash flows are assessed on an ongoing basis to determine if they actually have been highly effective throughout the financial reporting periods for which they were designated.
\nHedges which meet the strict criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in OCI in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of income within cost of goods sold.
Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when a forecast sale occurs.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognized in OCI remains separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement.
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The cost of finished goods and semi-finished products comprises raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity), but excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-407": { "value": "\nTrade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables and other short-term monetary liabilities are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method. If payment is due within one year or less, they are classified as current liabilities. If not, they are presented as non-current liabilities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-408": { "value": "\nTrade receivables are amounts due from customers for goods sold in the ordinary course of business. Trade receivables and other receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment, taking into account expected credit losses. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-411": { "value": "\nNon-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of the carrying amount and fair value less costs to sell. Assets held for sale are no longer amortized or depreciated from the date they are classified as such.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-412": { "value": "\nOrdinary issued shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are charged to the share premium reserve as a deduction, net of tax, from the proceeds.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-413": { "value": "\nBorrowings are recognized initially at fair value, net of transaction costs incurred. Subsequently, borrowings are carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Fees paid in connection to new loan facilities are recognized as transaction costs of the loan. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-414": { "value": "\nThe Group assesses whether a contract is or contains a lease at inception of the contract. The Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
\nThe lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.
\nLease payments included in the measurement of the lease liability comprise:
Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;
The amount expected to be payable by the lessee under residual value guarantees;
The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
\nThe lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case
\nthe lease liability is remeasured by discounting the revised lease payments using a revised discount rate;
The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used); and
A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.
The Group did not make any such adjustments during the periods presented.
\nThe right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.
\nWhenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognized and measured as described in Note 2.20. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.
\nRight-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
\nThe Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in Note 2.8, Impairment of non-financial assets.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-415": { "value": "\nDeferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.
\nDeferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
\nDeferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.
\nDeferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
\nDeferred tax liabilities for withholding taxes are recognized for subsidiaries in situations where the income is to be paid out as dividend in the foreseeable future to the extent that these withholding taxes are not expected to be refundable or deductible. Changes in tax rates are reflected in the period when the change has been enacted or substantially enacted by the reporting date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-416": { "value": "\nIncome tax comprises current and deferred tax. Income tax is recognized in the statement of income except to the extent that it relates to items recognized directly within equity or in OCI. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income, and any adjustment to tax payable in respect of previous years.
\nManagement periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-424": { "value": "\nGroup companies operate various pension schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Group has one defined benefit plan and various defined contribution plans.
\nA defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. The contributions are recognized as personnel expenses when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.
\nA defined benefit plan typically defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method.
\nRemeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding net interest (not applicable to the Group) and the return on plan assets (excluding net interest), are recognized immediately in the statement of financial position with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
\nPast service costs are recognized in income on the earlier of the date of the plan amendment or curtailment, and the date that the Group recognizes restructuring-related costs. Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
\nShort-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. The Group recognizes a liability and an expense for bonuses and profit sharing based on a percentage (generally 10% - 15%) of the profit before tax of the respective subsidiary. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-425": { "value": "\nOn 1 September 2010, the Group introduced an equity-settled share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the Company.
\nThe fair value of the employee services received in exchange for the grant of the options is recognized as an expense in the income statement, with a corresponding adjustment to equity. The total amount to be expensed is determined by reference to the fair value of the options granted as measured at the date of grant.
\nNon-market vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognizes the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment to equity.
\nWhen the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-426": { "value": "\nProvisions are recognized when the Group has a legal or constructive obligation as a result of a past event, when it is probable that an outflow of economic benefits will be required to settle the obligation and when a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognized as interest expense (when the time value of money is material).
\nAn onerous contract is considered to exist where the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract. Present obligations arising under onerous contracts are recognized and measured as provisions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-427": { "value": "\nInterest income is recognized using the effective interest method. When a loan or receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans and receivables is recognized using the original effective interest rate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-428": { "value": "\nRevenue relates to the sale of goods and services in the ordinary course of the Group\u2019s activities. Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating sales within the Group. Revenue is recognized when the performance obligations have been satisfied, which is once control of the goods and/or services has transferred from the Group to the buyer. Revenue is measured based on considerations specified in the contract with a customer and excludes amounts collected on behalf of third parties.
\nSales of goods are recognized when a Group entity satisfies a performance obligation by transferring promised products to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer\u2019s acceptance of the products. Delivery normally does not occur until the products have been shipped to the specified location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed or the Group has objective evidence that all criteria for acceptance have been satisfied. Sales are recorded based on the prices specified in the sales contracts.
\nRevenue is recognized in the (limited) cases when certain client specific goods have been created by processing and packaging, that do not have an alternative use to the Group, even when the finished goods have not been physically shipped and invoiced yet, in accordance with IFRS 15.
\nIf applicable, dividend income is recognized when the right to receive payment has been established, which is generally when shareholders approve the dividend.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-433": { "value": "\nGeneral and administrative expenses are allocated to the periods to which they relate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-434": { "value": "\nDividend distribution to the Company\u2019s shareholders is recognized as a liability in the Company\u2019s financial statements in the period in which the dividends are approved by the Company\u2019s shareholders.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-435": { "value": "\nThe statement of cash flows is prepared using the indirect method. Cash flows in foreign currencies are translated into euros using the weighted average rates of exchange for the periods involved.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-436": { "value": "\nThe Group is exposed to a variety of market and financial risks (including foreign exchange risk, price risk and interest rate risk), credit risk and liquidity risk. The Group\u2019s overall risk management focuses on the unpredictability of commodity and financial markets and seeks to minimize potential adverse effects on the Group\u2019s financial performance. The Group uses derivative financial instruments to hedge certain foreign currency and commodity risk exposures. Risk management is carried out under policies approved by the Board of Directors. Risks are identified, evaluated and hedged in close cooperation with the Group\u2019s operating units. The Board and the operating companies\u2019 management apply policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and investment of excess liquidity. The food products in which the Group trades are not traded on commodity exchanges or spot markets. The group companies contract and purchase the products in general at the source for physical delivery. For further explanation on Risk Management and Control see pages .
\nThe Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar. Foreign exchange risk arises from current and future commercial transactions, current and future costs, recognized assets and liabilities and net investments in foreign operations. The Board has set up a policy to require group companies to manage their foreign exchange risk against their functional currency.
\nThe group companies are required to hedge their foreign exchange risk exposure arising from sales and purchase transactions within the respective company in accordance with Group policies. To manage their foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, entities in the Group use forward contracts, transacted with external banks and net borrowings in foreign currencies.
\nForeign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity\u2019s functional currency.
\nThe Group has certain investments in foreign operations whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group\u2019s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies. For the year 2023, if the average US dollar currency applied had weakened/strengthened by 5% against the euro with all other variables held constant, net profit for the year would have been approximately \u20ac1.0 million higher/lower (2022: \u20ac1.5 million), mainly as a result of foreign exchange results on translation of US dollar-denominated income from the Edible Seeds, Organic Ingredients and Tea business. As at 31 December 2023, the total impact on shareholders\u2019 equity of a 5% US dollar increase/decrease relating to equity of subsidiaries with a US dollar functional currency would have been approximately \u20ac10.5 million (2022: \u20ac12.6 million). Similarly, total assets would have increased/decreased by approximately \u20ac16.8 million (2022: \u20ac19.5 million) in case of the euro/US dollar rate being 5% higher/lower than the rate as at 31 December 2023 that has been used. The Group\u2019s exposure to foreign currency changes for all other currencies is not material.
\nThe Company\u2019s results are sensitive to commodity market price movements. In order to manage the effects of price movements of commodities, the group companies apply internally determined trading guidelines including maximum positions per product group and overall positions. For certain organic products (cocoa and coffee), where exchange-traded futures and options are available for the conventional equivalent, the Group purchases and sells primarily exchange-traded futures and options with the purpose of managing market exposure to adverse price movements in these commodities. From a financing point of view, headroom available within bank facilities is closely monitored in order to be able to finance increased working capital requirements when commodity prices increase.
\nThe Group\u2019s interest rate risk arises from long-term borrowings and working capital financing. Borrowings and working capital financing contracted at variable interest rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable interest rates. Borrowings contracted at fixed interest rates expose the Group to fair value interest rate risk. Currently, the Group has no material borrowings at fixed interest rates. During 2023 and 2022, the Group\u2019s borrowings at variable interest rates were denominated in euro and US dollar. The Group analyzes its interest rate exposure on a dynamic basis. Scenarios are simulated taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift. For each simulation, the same interest rate shift is used for all currencies. The scenarios are run only for liabilities that represent the major interest-bearing positions.
\nA sensitivity analysis has been made based on the exposure to interest rates for the bank borrowings and current financial bank liabilities at the balance sheet date. If interest rates had been 0.5% (50 basis points) higher/lower and all other variables were held constant, the Group\u2019s result before tax for the year ended 31 December 2023 would have been approximately \u20ac1.3 million (2022: \u20ac1.7 million) lower/higher respectively.
\nCredit risk is managed at the subsidiary level. Each local subsidiary is responsible for managing and analyzing the credit risk for each of their customers before standard payment and delivery terms and conditions are offered. Credit risk arises from derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. As part of risk control the credit quality of the customer, taking into account its financial position, past experience and other factors, are assessed. Individual risk limits are set, based on internal or external ratings in accordance with limits set by management of the operating companies. The utilization of credit limits is regularly monitored. See Note 12.1 for further disclosure on credit risk. Management does not expect any undisclosed material losses from non-performance by these counterparties.
\nThe Group establishes an allowance for expected credit losses in respect of trade receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that are expected but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets, adjusted for forward-looking information.
\nTo mitigate the counterparty risk with financial institutions, the Group has the policy to make use of financial institutions which are investment grade. The Group\u2019s main financial institutions are systemically important and operate under close supervision of their respective financial regulatory bodies.
\nCash flow forecasting is performed in the operating entities of the Group and aggregated by Group Treasury. Group Treasury monitors rolling forecasts of the Group\u2019s liquidity requirements and calculates ratios to ensure it has sufficient funds to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times, so the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities (Note 12.5). Such forecasting takes into consideration the Group\u2019s debt financing plans, planned capital expenditures, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable, external regulatory or legal requirements \u2013 for example, currency restrictions. Surplus cash held by the operating entities over and above balances required for working capital purposes are transferred to Group Treasury. Group Treasury invests surplus cash in interest bearing current accounts at first class banks.
\nThe Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern in order to ensure the continued financing of the trading activities, to provide adequate long-term returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
\nThe Company monitors capital on the basis of the solvency ratio. This ratio is calculated as total equity plus subordinated debt divided by total assets. During 2023, the Company\u2019s objective, which was unchanged from the previous year, was to maintain the solvency ratio at a minimum of 30% and preferably around 40%. The solvency ratios as at 31 December 2023 and 2022 were as follows:
\nSolvency | 31 December 2023 | 31 December 2022 |
|---|---|---|
Total equity | 407,101 | 413,719 |
Total assets | 747,613 | 860,755 |
Solvency ratio | 54.5% | 48.1% |
Based on the strong cash position of the Group, the available credit facilities, the solvency ratio and the Group\u2019s ability to meet its obligations without substantial restructuring or selling of its assets in the normal course of business, the Group\u2019s financial statements have been prepared assuming a going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-437": { "value": "\nThe Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar. Foreign exchange risk arises from current and future commercial transactions, current and future costs, recognized assets and liabilities and net investments in foreign operations. The Board has set up a policy to require group companies to manage their foreign exchange risk against their functional currency.
\nThe group companies are required to hedge their foreign exchange risk exposure arising from sales and purchase transactions within the respective company in accordance with Group policies. To manage their foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, entities in the Group use forward contracts, transacted with external banks and net borrowings in foreign currencies.
\nForeign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity\u2019s functional currency.
\nThe Group has certain investments in foreign operations whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group\u2019s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies. For the year 2023, if the average US dollar currency applied had weakened/strengthened by 5% against the euro with all other variables held constant, net profit for the year would have been approximately \u20ac1.0 million higher/lower (2022: \u20ac1.5 million), mainly as a result of foreign exchange results on translation of US dollar-denominated income from the Edible Seeds, Organic Ingredients and Tea business. As at 31 December 2023, the total impact on shareholders\u2019 equity of a 5% US dollar increase/decrease relating to equity of subsidiaries with a US dollar functional currency would have been approximately \u20ac10.5 million (2022: \u20ac12.6 million). Similarly, total assets would have increased/decreased by approximately \u20ac16.8 million (2022: \u20ac19.5 million) in case of the euro/US dollar rate being 5% higher/lower than the rate as at 31 December 2023 that has been used. The Group\u2019s exposure to foreign currency changes for all other currencies is not material.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-443": { "value": "\nThe Company\u2019s results are sensitive to commodity market price movements. In order to manage the effects of price movements of commodities, the group companies apply internally determined trading guidelines including maximum positions per product group and overall positions. For certain organic products (cocoa and coffee), where exchange-traded futures and options are available for the conventional equivalent, the Group purchases and sells primarily exchange-traded futures and options with the purpose of managing market exposure to adverse price movements in these commodities. From a financing point of view, headroom available within bank facilities is closely monitored in order to be able to finance increased working capital requirements when commodity prices increase.
\nThe Group\u2019s interest rate risk arises from long-term borrowings and working capital financing. Borrowings and working capital financing contracted at variable interest rates expose the Group to cash flow interest rate risk which is partially offset by cash held at variable interest rates. Borrowings contracted at fixed interest rates expose the Group to fair value interest rate risk. Currently, the Group has no material borrowings at fixed interest rates. During 2023 and 2022, the Group\u2019s borrowings at variable interest rates were denominated in euro and US dollar. The Group analyzes its interest rate exposure on a dynamic basis. Scenarios are simulated taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift. For each simulation, the same interest rate shift is used for all currencies. The scenarios are run only for liabilities that represent the major interest-bearing positions.
\nA sensitivity analysis has been made based on the exposure to interest rates for the bank borrowings and current financial bank liabilities at the balance sheet date. If interest rates had been 0.5% (50 basis points) higher/lower and all other variables were held constant, the Group\u2019s result before tax for the year ended 31 December 2023 would have been approximately \u20ac1.3 million (2022: \u20ac1.7 million) lower/higher respectively.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-448": { "value": "\nCredit risk is managed at the subsidiary level. Each local subsidiary is responsible for managing and analyzing the credit risk for each of their customers before standard payment and delivery terms and conditions are offered. Credit risk arises from derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. As part of risk control the credit quality of the customer, taking into account its financial position, past experience and other factors, are assessed. Individual risk limits are set, based on internal or external ratings in accordance with limits set by management of the operating companies. The utilization of credit limits is regularly monitored. See Note 12.1 for further disclosure on credit risk. Management does not expect any undisclosed material losses from non-performance by these counterparties.
\nThe Group establishes an allowance for expected credit losses in respect of trade receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that are expected but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets, adjusted for forward-looking information.
\nTo mitigate the counterparty risk with financial institutions, the Group has the policy to make use of financial institutions which are investment grade. The Group\u2019s main financial institutions are systemically important and operate under close supervision of their respective financial regulatory bodies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-449": { "value": "\nCash flow forecasting is performed in the operating entities of the Group and aggregated by Group Treasury. Group Treasury monitors rolling forecasts of the Group\u2019s liquidity requirements and calculates ratios to ensure it has sufficient funds to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times, so the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities (Note 12.5). Such forecasting takes into consideration the Group\u2019s debt financing plans, planned capital expenditures, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable, external regulatory or legal requirements \u2013 for example, currency restrictions. Surplus cash held by the operating entities over and above balances required for working capital purposes are transferred to Group Treasury. Group Treasury invests surplus cash in interest bearing current accounts at first class banks.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-450": { "value": "\nThe Group\u2019s objectives when managing capital are to safeguard the Group\u2019s ability to continue as a going concern in order to ensure the continued financing of the trading activities, to provide adequate long-term returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
\nThe Company monitors capital on the basis of the solvency ratio. This ratio is calculated as total equity plus subordinated debt divided by total assets. During 2023, the Company\u2019s objective, which was unchanged from the previous year, was to maintain the solvency ratio at a minimum of 30% and preferably around 40%. The solvency ratios as at 31 December 2023 and 2022 were as follows:
\nSolvency | 31 December 2023 | 31 December 2022 |
|---|---|---|
Total equity | 407,101 | 413,719 |
Total assets | 747,613 | 860,755 |
Solvency ratio | 54.5% | 48.1% |
Based on the strong cash position of the Group, the available credit facilities, the solvency ratio and the Group\u2019s ability to meet its obligations without substantial restructuring or selling of its assets in the normal course of business, the Group\u2019s financial statements have been prepared assuming a going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-451": { "value": "\nThe Group makes estimates and assumptions. The resulting accounting estimates will, by definition, seldomly equal the related actual results. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
\nThe Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in Note 2.8. The recoverable amounts of CGUs have been determined, based on value-in-use calculations. These calculations require the use of estimates (Note 13.1).
\nThe Group is subject to income taxes in numerous jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is inherently uncertain. The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. Additional information is disclosed in Note 10 and Note 13.5.
\nThe present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate, mortality rates and future pension increases. The mortality rate is based on publicly available mortality tables. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
\nThe Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation. Additional information is disclosed in Note 13.6.
\nProvisions are made for write-down of inventories to net realizable value based on management\u2019s estimates using available market information. Where management has determined that the net realizable value is lower than the initial value, inventories are written down. Additional information is disclosed in Note 13.4.
\nProvisions are made for doubtful debts based on management\u2019s estimates of the prospects of recovering the debt. Where management has determined that recovering is doubtful, the amount is provided for, based on the expected credit loss, also taking into account that historical write-offs have been limited. Additional information is disclosed in Note 12.1.
\nThe Group is party to various legal proceedings, generally incidental, to its business. In connection with these proceedings and claims, management evaluated, based on the relevant facts and legal principles, the likelihood of an unfavourable outcome and whether the amount of the loss could be reasonably estimated. Subjective judgments were required in these evaluations, including judgments regarding the validity of asserted claims and the likely outcome of legal and administrative proceedings. The outcome of these proceedings, however, is subject to a number of factors beyond the Group\u2019s control, most notably the uncertainty associated with predicting decisions by courts and administrative agencies. Additional information is disclosed in Note 13.7.
\nProvisions for onerous contracts are recognized at the balance sheet date at management\u2019s best estimate of the expenditure required to settle the present obligation.
\nManagement has based its estimate on its current knowledge and expectations of the future price development of the underlying food products. Additional information is disclosed in Note 13.7.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-452": { "value": "\nThe Group makes estimates and assumptions. The resulting accounting estimates will, by definition, seldomly equal the related actual results. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
\nThe Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in Note 2.8. The recoverable amounts of CGUs have been determined, based on value-in-use calculations. These calculations require the use of estimates (Note 13.1).
\nThe Group is subject to income taxes in numerous jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is inherently uncertain. The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. Additional information is disclosed in Note 10 and Note 13.5.
\nThe present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate, mortality rates and future pension increases. The mortality rate is based on publicly available mortality tables. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
\nThe Group determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation. Additional information is disclosed in Note 13.6.
\nProvisions are made for write-down of inventories to net realizable value based on management\u2019s estimates using available market information. Where management has determined that the net realizable value is lower than the initial value, inventories are written down. Additional information is disclosed in Note 13.4.
\nProvisions are made for doubtful debts based on management\u2019s estimates of the prospects of recovering the debt. Where management has determined that recovering is doubtful, the amount is provided for, based on the expected credit loss, also taking into account that historical write-offs have been limited. Additional information is disclosed in Note 12.1.
\nThe Group is party to various legal proceedings, generally incidental, to its business. In connection with these proceedings and claims, management evaluated, based on the relevant facts and legal principles, the likelihood of an unfavourable outcome and whether the amount of the loss could be reasonably estimated. Subjective judgments were required in these evaluations, including judgments regarding the validity of asserted claims and the likely outcome of legal and administrative proceedings. The outcome of these proceedings, however, is subject to a number of factors beyond the Group\u2019s control, most notably the uncertainty associated with predicting decisions by courts and administrative agencies. Additional information is disclosed in Note 13.7.
\nProvisions for onerous contracts are recognized at the balance sheet date at management\u2019s best estimate of the expenditure required to settle the present obligation.
\nManagement has based its estimate on its current knowledge and expectations of the future price development of the underlying food products. Additional information is disclosed in Note 13.7.
", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-453": { "value": "\nThe Board of Directors, consisting of the Non-Executive Directors and Executive Directors, examines the Group\u2019s performance both from a product and geographic perspective and has identified five reportable segments of its business: Spices and Nuts, Edible Seeds, Organic Ingredients, Tea, and Food Solutions.
\nThe segment information for the reportable segments for the years ended 31 December 2023 and 2022 is as follows:
\n2023 | Spices and Nuts | Edible Seeds | Organic Ingredients | Tea | Food Solutions | Holding and intra-Group | Total |
|---|---|---|---|---|---|---|---|
Sales | 429,960 | 257,290 | 436,379 | 120,623 | 24,071 | (2,241) | 1,266,082 |
Operating expenses | (383,066) | (228,852) | (429,480) | (115,405) | (18,282) | (927) | (1,176,012) |
Operational EBITDA | 46,894 | 28,438 | 6,899 | 5,218 | 5,789 | (3,168) | 90,070 |
Unrealized FX and CX results | 331 | \u00a0 | (751) | \u00a0 | \u00a0 | \u00a0 | (420) |
Reported EBITDA | 47,225 | 28,438 | 6,148 | 5,218 | 5,789 | (3,168) | 89,650 |
Depreciation, amortization and impairments | (2,008) | (6,677) | (8,937) | (999) | (558) | (201) | (19,380) |
Operating income (EBIT) | 45,217 | 21,761 | (2,789) | 4,219 | 5,231 | (3,369) | 70,270 |
Interest income/(expense), net | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (16,727) |
Income tax expense | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (13,910) |
Net result | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 39,633 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions intangibles and PPE (net)1 | 333 | 4,609 | 1,364 | 119 | 148 | 11 | 6,584 |
Additions right-of-use assets | 196 | 579 | 1,414 | - | 179 | 127 | 2,495 |
Total intangibles and PPE | 2,976 | 23,503 | 60,617 | 2,172 | 2,739 | 21 | 92,028 |
Total right-of-use assets | 5,330 | 3,561 | 5,024 | 1,766 | 349 | 370 | 16,400 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total assets | 171,783 | 137,759 | 251,883 | 59,004 | 10,560 | 116,624 | 747,613 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total liabilities | 110,884 | 85,991 | 95,320 | 16,956 | 6,341 | 25,020 | 340,512 |
2022 | Spices and Nuts | Edible Seeds | Organic Ingredients | Tea | Food Solutions | Holding and intra-Group | Total |
|---|---|---|---|---|---|---|---|
Sales | 439,687 | 269,773 | 541,935 | 149,069 | 24,322 | (2,010) | 1,422,776 |
Operating expenses | (401,236) | (241,799) | (511,882) | (140,733) | (18,939) | 182 | (1,314,407) |
Operational EBITDA | 38,451 | 27,974 | 30,053 | 8,336 | 5,383 | (1,828) | 108,369 |
Unrealized FX and CX results | (974) | \u00a0 | (2,814) | \u00a0 | \u00a0 | \u00a0 | (3,788) |
Reported EBITDA | 37,477 | 27,974 | 27,239 | 8,336 | 5,383 | (1,828) | 104,581 |
Depreciation, amortization and impairments | (2,052) | (6,757) | (8,975) | (1,069) | (562) | (248) | (19,663) |
Operating income (EBIT) | 35,425 | 21,217 | 18,264 | 7,267 | 4,821 | (2,076) | 84,918 |
Interest income/(expense), net | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (11,242) |
Income tax expense | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (18,805) |
Net result | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 54,871 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Additions intangibles and PPE (net)1 | 1,065 | 3,234 | 1,873 | 252 | 217 | 6 | 6,647 |
Additions right-of-use assets | 38 | 537 | 163 | - | 128 | 179 | 1,045 |
Total intangibles and PPE | 3,340 | 25,337 | 68,314 | 2,887 | 3,008 | 27 | 102,913 |
Total right-of-use assets | 6,254 | 3,957 | 4,111 | 2,346 | 312 | 428 | 17,408 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total assets | 182,368 | 144,290 | 315,943 | 72,342 | 12,203 | 133,609 | 860,755 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total liabilities | 122,897 | 89,406 | 110,369 | 29,917 | 8,266 | 86,181 | 447,036 |
The amounts with respect to total assets are measured in a manner consistent with that of the financial statements. These assets are allocated based on the operations of the segment and the physical location of the asset. Inter-segment sales are eliminated upon consolidation and reflected in the Holding and intra-Group column.
\nSales per geography are as follows:
\nSales | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|
(in \u20ac\u00a0millions) | NL | Europe | North America | Other | Total |
2023 | 210.7 | 434.7 | 511.8 | 108.9 | 1,266.1 |
2022 | 231.5 | 495.9 | 575.8 | 119.6 | 1,422.8 |
The cost of goods sold of \u20ac1,089.2 million (2022: \u20ac1,238.1 million) includes the cost of products sold, changes in the provision for obsolete inventories, amortization, depreciation and impairment charges, and expenses related to purchase, production and selling.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-455": { "value": "\nThe general and administrative expenses of \u20ac106.6 million (2022: \u20ac99.7 million) include IT, travel, office, amortization and depreciation charges, and other general expenses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-456": { "value": "\nTotal personnel costs, included in the cost of sales and general and administrative expenses, are as follows:
\n| \u00a0 | Note | 2023 | 2022 |
|---|---|---|---|
Wages and salaries including profit sharing | \u00a0 | 75,816 | 79,888 |
Social security costs | \u00a0 | 9,222 | 8,473 |
Pension costs \u2013 defined contribution plans | 3,498 | 3,560 | |
Pension costs \u2013 defined benefit plans | 72 | 55 | |
Share options \u2013 charge for the year | 278 | 133 | |
Other | \u00a0 | 6,038 | 3,566 |
Total personnel costs | \u00a0 | 94,924 | 95,675 |
On a full-time equivalent basis the total number of employees is:
\nNumber of employees | 2023 | 2022 |
|---|---|---|
Average number | 1,178 | 1,200 |
Number at 31\u00a0December | 1,151 | 1,191 |
The breakdown per function as at 31 December is as follows:
\n| \u00a0 | 2023 | 2022 |
|---|---|---|
Production | 578 | 644 |
General | 573 | 547 |
Total | 1,151 | 1,191 |
The retirement benefit obligations are as follows:
\nBalance sheet obligations | 31 December 2023 | 31 December 2022 |
|---|---|---|
Pension benefits \u2013 defined benefit plans | 1,319 | 1,465 |
Pension benefits \u2013 defined contribution plans | 63 | 67 |
Liability in the balance sheet | 1,382 | 1,532 |
The pension costs in the income statement are as follows:
\nIncome statement charges | Note | 2023 | 2022 |
|---|---|---|---|
Pension costs \u2013 defined benefit plans | 8 | 72 | 55 |
Pension costs \u2013 defined contribution plans | 8 | 3,498 | 3,560 |
Pension cost in the income statement | \u00a0 | 3,570 | 3,615 |
Since the acquisition of Royal Van Rees Group, Red River Commodities and Delinuts, the Group has operated defined benefit pension plans in the Netherlands and the US, based on employee pensionable remuneration and length of service. The Royal Van Rees Group plan was changed into a defined contribution plan in 2014. The pension plan in the US was closed in 2008, both for changes in salaries and for new entrants, and therefore serves as a pension fund for existing and former employees of Red River Commodities that were eligible up to mid-2008. The remaining defined benefit plan in the US is externally funded. The Delinuts pension plan was changed into a defined contribution plan in 2018. Plan assets are held in trusts and at insurance companies, governed by local regulations and practice in each country. In addition, some relatively limited selected pension agreements have been arranged within the Group.
\nThe Group also operates defined contribution plans which receive fixed contributions from group companies. The Group\u2019s legal or constructive obligation for these plans is limited to the contributions.
\nThe amounts recognized in the balance sheet are determined as follows:
\nNet pension liability | 31 December 2023 | 31 December 2022 |
|---|---|---|
Present value of funded obligations | 4,854 | 5,110 |
Fair value of plan assets | (3,535) | (3,645) |
Deficit of funded plans | 1,319 | 1,465 |
Other pension liabilities | 63 | 67 |
Total net pension liability | 1,382 | 1,532 |
The movement in the defined benefit obligations over the year is as follows:
\nActuarial pension obligations | 2023 | 2022 |
|---|---|---|
1 January | 5,111 | 5,954 |
Interest cost | 245 | 179 |
Benefit payments | (388) | (138) |
Remeasurements | 155 | (1,275) |
Exchange differences | 145 | 391 |
31 December | 5,268 | 5,111 |
Actuarial results mainly consist of changes in financial assumptions.
\nThe movement in the fair value of plan assets of the year is as follows:
\nValue plan assets | 2023 | 2022 |
|---|---|---|
1 January | 3,645 | 4,135 |
Expected return on plan assets | 173 | 124 |
Remeasurements | 272 | (781) |
Employer contributions | 58 | 34 |
Benefit payments | (388) | (138) |
Exchange differences | 271 | 271 |
31 December | 4,031 | 3,645 |
The plan assets mainly consist of equity instruments (\u20ac1.8 million) and debt instruments (\u20ac1.8 million).
\nThe amounts recognized in the income statement are as follows:
\nPension costs | Note | 2023 | 2022 |
|---|---|---|---|
Interest cost | \u00a0 | 245 | 179 |
Return on plan assets | \u00a0 | (173) | (124) |
Total pension costs, included in personnel costs | 8 | 72 | 55 |
The principal actuarial assumptions are as follows:
\nActuarial assumptions | 31\u00a0December 2023 | 31\u00a0December 2022 |
|---|---|---|
Discount rate | 4.8% | 2.8% |
Mortality table | Pri-2012 | Pri-2012 |
Correction | Scale MP-2021 | Scale MP-2021 |
Actuarial calculations indicate that a 0.5% decrease in the discount rate used would affect the total liability by approximately 4.8%.
\nTotal employer contributions expected to be paid during 2024 are estimated at \u20ac77.
\nHistorical data | 31\u00a0December 2023 | 31\u00a0December 2022 | 31\u00a0December 2021 | 31\u00a0December 2020 |
|---|---|---|---|---|
Defined benefit obligations | 4,854 | 5,110 | 5,954 | 5,722 |
Fair values of plan assets | (3,535) | (3,645) | (4,135) | (3,700) |
Deficit of funded plans | 1,319 | 1,465 | 1,819 | 2,022 |
Other pension liabilities mainly refer to provisions for retirement benefits by law (gratuity) in various countries including Kenya and Sri Lanka.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-457": { "value": "\n| \u00a0 | 2023 | 2022 |
|---|---|---|
Interest income on short-term bank deposits | 30 | 43 |
Interest expense on bank borrowings | (15,405) | (9,166) |
Interest expense on leases | (616) | (610) |
Amortization arrangement fees | (1,231) | (1,398) |
Net financial income/(expenses) | (17,222) | (11,131) |
| \u00a0 | \u00a0 | \u00a0 |
Other financial income/(expenses) | 495 | (111) |
| \u00a0 | \u00a0 | \u00a0 |
Total financial income/(expenses) | (16,727) | (11,242) |
| \u00a0 | 2023 | 2022 |
|---|---|---|
Interest income on short-term bank deposits | 30 | 43 |
Interest expense on bank borrowings | (15,405) | (9,166) |
Interest expense on leases | (616) | (610) |
Amortization arrangement fees | (1,231) | (1,398) |
Net financial income/(expenses) | (17,222) | (11,131) |
| \u00a0 | \u00a0 | \u00a0 |
Other financial income/(expenses) | 495 | (111) |
| \u00a0 | \u00a0 | \u00a0 |
Total financial income/(expenses) | (16,727) | (11,242) |
Current income tax expense | Note | 2023 | 2022 |
|---|---|---|---|
Current income tax on profits for the year | \u00a0 | 15,320 | 19,783 |
Adjustments in respect of prior years | \u00a0 | (102) | (3) |
Total current income tax expense | \u00a0 | 15,218 | 19,780 |
Deferred income tax expense/(income) | (1,308) | (975) | |
Total corporate income tax expense | \u00a0 | 13,910 | 18,805 |
The Group is within the scope of the OECD Pillar Two model rules. Pillar Two legislation was enacted in the Netherlands, the jurisdiction in which ACOMO N.V. is incorporated, and will come into effect from 1 January 2025. Since the Pillar Two legislation was not effective at the reporting date, the Group has no related current tax exposure. The Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023. Under the legislation, the Group is liable to pay a top-up tax for the difference between their GloBE effective tax rate per jurisdiction and the 15% minimum rate. All entities within the Group have an effective tax rate that exceeds 15%.
\nThe Group is in the process of assessing its exposure to the Pillar Two legislation for when it comes into effect. Due to the complexities in applying the legislation and calculating GloBE income, the quantitative impact of the enacted or substantively enacted legislation is not yet reasonably estimable. Therefore, even for those entities with an accounting effective tax rate above 15%, there may still be Pillar Two tax implications. The Group is currently engaged with tax specialists to assist with applying the legislation.
\nThe effective tax rate on the Group\u2019s profit differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities as follows:
\nCorporate income tax expense | \u00a0 | 2023 | 2022 |
|---|---|---|---|
Tax calculated at domestic tax rates applicable to profits in the respective countries | \u00a0 | 13,872 | 18,488 |
Tax effect of: | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | 41 | 43 |
| \u00a0 | 142 | 60 |
| \u00a0 | (102) | (3) |
| \u00a0 | 136 | 115 |
| \u00a0 | (302) | (70) |
| \u00a0 | 123 | 172 |
Total corporate income tax expense | \u00a0 | 13,910 | 18,805 |
Average effective tax rate | \u00a0 | 26.0% | 25.5% |
The average effective tax rate increased from 25.5% to 26.0%, mainly due to the effect of higher state tax rates in the US, and a different country mix.
\nThe tax (charge)/credit relating to components of OCI is as follows:
\nTax components OCI 2023 | \u00a0 | Before tax | Tax | After tax |
|---|---|---|---|---|
Cash flow hedges | \u00a0 | (43) | 11 | (32) |
Currency translation adjustments (CTA) | \u00a0 | (10,989) | - | (10,989) |
Remeasurement gains/(losses) on defined benefit plans | \u00a0 | 119 | (29) | 90 |
Total | \u00a0 | (10,913) | (18) | (10,931) |
Tax components OCI 2022 | \u00a0 | Before tax | Tax | After tax |
|---|---|---|---|---|
Cash flow hedges | \u00a0 | (294) | 75 | (219) |
Currency translation adjustments (CTA) | \u00a0 | 23,692 | - | 23,692 |
Remeasurement gains/(losses) on defined benefit plans | \u00a0 | 495 | (120) | 375 |
Total | \u00a0 | 23,893 | (45) | 23,848 |
Basic earnings per share are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the year.
\nDiluted earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.
\nFor the share options, a calculation is made to determine the number of shares that could have been issued at fair value (determined as the average annual market share price of the Company\u2019s shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that will be issued assuming the exercise of all issued share options.
\nThe excess number of shares is used for calculating diluted earnings per share.
\nEarnings used to calculate (diluted) earnings per share | 2023 | 2022 |
|---|---|---|
Net profit\u00a0attributable to shareholders | 39,727 | 54,681 |
Share option plan cost, net | 278 | 133 |
Basis for diluted profit | 40,005 | 54,814 |
Number of shares, weighted and dilutive | 2023 | 2022 |
|---|---|---|
Weighted average number of ordinary shares issued | \u00a0 | \u00a0 |
Issued 1 January | 29,617,746 | 29,609,871 |
New shares issued, weighted part | - | 5,825 |
Total number of shares issued, weighted 31\u00a0December | 29,617,746 | 29,615,696 |
| \u00a0 | \u00a0 | \u00a0 |
New shares issued, unweighted part | - | 2,050 |
Total number of shares issued 31\u00a0December | 29,617,746 | 29,617,746 |
Total number of shares, dilutive 31\u00a0December | 29,617,746 | 29,617,746 |
It is proposed to distribute a final dividend of per share. Together with the 2023 interim dividend of per share paid in August 2023, this brings the total 2023 dividend to \u20ac1.15 per share. The total number of issued shares is 29,617,746. The 2023 interim dividend amounted to \u20ac11,847, implying that the proposed dividend would lead to a total 2023 dividend of (total 2022: \u20ac37,022). These financial statements do not reflect a liability for this final dividend payable of \u20ac22,213.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-461": { "value": "\nThe Group holds the following financial instruments:
\nFinancial liabilities | 31 December 2023 | 31 December 2022 |
|---|---|---|
Liabilities at amortized cost | \u00a0 | \u00a0 |
Trade and other payables1 | 106,124 | 116,452 |
Bank borrowings | 195,611 | 283,971 |
Lease liabilities | 17,351 | 18,249 |
Derivative financial instruments | \u00a0 | \u00a0 |
Used for hedging | 3,958 | 5,039 |
Total | 323,044 | 423,711 |
Financial assets | 31 December 2023 | 31 December 2022 |
|---|---|---|
Financial assets at amortized cost | \u00a0 | \u00a0 |
Trade receivables | 145,157 | 166,791 |
Other financial assets at amortized cost | 23,131 | 20,628 |
Cash and cash equivalents | 2,520 | 4,892 |
Derivative financial instruments | \u00a0 | \u00a0 |
Used for hedging | 310 | 3,549 |
Total | 171,118 | 195,860 |
The fair values of the financial assets and financial liabilities approximate their carrying amounts or are not materially different. The Group\u2019s exposure to various risks associated with the financial instruments is discussed in Note 3.1. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets mentioned above.
\nTrade receivables | 31 December 2023 | 31 December 2022 |
|---|---|---|
Trade receivables | 148,675 | 169,983 |
Allowance for expected credit losses | (3,518) | (3,192) |
Total trade receivables, net | 145,157 | 166,791 |
As at 31 December 2023, trade receivables were impaired for a total amount of \u20ac3.5 million (2022: \u20ac3.2 million). The individually (partly or fully) impaired receivables mainly relate to customers in the ordinary line of business which are in unexpectedly difficult economic or financial situations.
\nAs at 31 December 2023, trade receivables of approximately \u20ac7.9 million (2022: \u20ac7.8 million) were past due but without loss provision. The Group believes that the unimpaired amounts that are past due by more than 30 days are still collectable based on historic payment behaviour and analyses of the underlying customers\u2019 creditworthiness, taking into account forward looking factors.
\nThe ageing analysis of these trade receivables is as follows:
\nAgeing receivables | 31 December 2023 | 31 December 2022 |
|---|---|---|
Up to 1 month | 137,209 | 158,945 |
1-2 months | 2,848 | 5,330 |
2-3 months | 1,466 | 1,128 |
Over 3 months | 7,152 | 4,580 |
Total trade receivables, gross | 148,675 | 169,983 |
The carrying amounts of the Group\u2019s trade receivables are denominated in the following currencies:
\nTrade receivables \u2014 currency | 31 December 2023 | 31 December 2022 |
|---|---|---|
Denominated in euros | 56,267 | 64,910 |
Denominated in US dollars | 89,080 | 100,351 |
Denominated in UK pounds | 369 | 1,596 |
Denominated in other currencies | 2,959 | 3,126 |
Total trade receivables, gross | 148,675 | 169,983 |
Movements in the allowance for expected credit losses are as follows:
\nAllowance for expected credit losses | 31 December 2023 | 31 December 2022 |
|---|---|---|
1 January | 3,192 | 2,862 |
Write-offs | (188) | (53) |
Charged to the income statement | 534 | 344 |
Exchange differences | (20) | 39 |
31\u00a0December | 3,518 | 3,192 |
Overdue receivables are generally fully written off when there is no expectation of recovering additional cash. The other classes within trade and other receivables do not contain material impaired assets. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned above. In general, the Group does not hold any collateral as security and delivery terms dictate that full title of ownership can be withdrawn for unpaid deliveries.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-478": { "value": "\nOther financial assets | 31 December 2023 | 31 December 2022 |
|---|---|---|
Current | \u00a0 | \u00a0 |
Prepayments | 9,816 | 11,057 |
Tax and social securities | 2,325 | 4,586 |
Other receivables | 7,353 | 2,628 |
Other receivables | 19,494 | 18,271 |
| \u00a0 | \u00a0 | \u00a0 |
Non-current | \u00a0 | \u00a0 |
Issued loans | 3,422 | 2,356 |
Other | 215 | 1 |
Other non-current receivables | 3,637 | 2,357 |
| \u00a0 | \u00a0 | \u00a0 |
Total | 23,131 | 20,628 |
The issued loans comprise:
A loan of \u20ac1.4 million, ultimately due on 31 July 2026. The loan is secured by a mortgage on commercial real estate.
A loan of \u20ac2.0 million, ultimately due on 16 December 2029.
| \u00a0 |
This section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.
\nRecurring fair value measurements 31 December 2023 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 282 | - | 282 |
Hedging derivatives - commodity contracts | - | 28 | - | 28 |
Total financial assets | - | 310 | - | 310 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 1,611 | - | 1,611 |
Hedging derivatives - commodity contracts | - | 2,347 | - | 2,347 |
Total financial liabilities | - | 3,958 | - | 3,958 |
Recurring fair value measurements 31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 893 | - | 893 |
Hedging derivatives - commodity contracts | - | 2,656 | - | 2,656 |
Total financial assets | - | 3,549 | - | 3,549 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 3,596 | - | 3,596 |
Hedging derivatives - commodity contracts | - | 1,443 | - | 1,443 |
Total financial liabilities | - | 5,039 | - | 5,039 |
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity securities) is based on quoted market prices at the end of the reporting period. These instruments are included in level 1.
\nLevel 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to determine the fair value of an instrument are observable, the instrument is included in level 2.
\nLevel 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.
\nDerivatives are only used for economic hedging purposes and not as speculative investments. However, where derivatives do not meet the hedge accounting criteria, they are classified as \u2018held for trading\u2019 for accounting purposes and are accounted for at fair value through profit or loss. They are presented as current assets or liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period.
\nForeign exchange contracts relate for more than 95% to forward US dollar sales and purchases with a term of less than 12 months and relate to hedged items with a maturity of less than 12 months. Consequently, the net value of these derivatives is classified as a current asset or liability. Commodity contracts relate to coffee and cocoa sales-and-purchases contracts with a term of less than 12 months, and relate to hedged items with a maturity of less than 12 months. The maximum exposure to credit risk at the reporting date is the fair value of the derivative assets in the consolidated balance sheet.
\nThe total notional principal amounts of the outstanding forward foreign exchange contracts as at 31 December 2023 were $89.6 million bought and $28.2 million sold, resulting in a total net amount of $61.4 million (2022: $60.6 million), and \u00a31.5 million sold, resulting in a net position of -\u00a31.5 million (2022: \u00a30.6 million). Gains and losses recognized in the hedge reserve in equity (Note 14.2) on forward foreign exchange contracts as at 31 December 2023 are recognized in the income statement in the period or periods during which the hedged forecast transaction affects the income statement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-480": { "value": "\nThis section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.
\nRecurring fair value measurements 31 December 2023 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 282 | - | 282 |
Hedging derivatives - commodity contracts | - | 28 | - | 28 |
Total financial assets | - | 310 | - | 310 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 1,611 | - | 1,611 |
Hedging derivatives - commodity contracts | - | 2,347 | - | 2,347 |
Total financial liabilities | - | 3,958 | - | 3,958 |
Recurring fair value measurements 31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 893 | - | 893 |
Hedging derivatives - commodity contracts | - | 2,656 | - | 2,656 |
Total financial assets | - | 3,549 | - | 3,549 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 3,596 | - | 3,596 |
Hedging derivatives - commodity contracts | - | 1,443 | - | 1,443 |
Total financial liabilities | - | 5,039 | - | 5,039 |
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity securities) is based on quoted market prices at the end of the reporting period. These instruments are included in level 1.
\nLevel 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to determine the fair value of an instrument are observable, the instrument is included in level 2.
\nLevel 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.
\nDerivatives are only used for economic hedging purposes and not as speculative investments. However, where derivatives do not meet the hedge accounting criteria, they are classified as \u2018held for trading\u2019 for accounting purposes and are accounted for at fair value through profit or loss. They are presented as current assets or liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period.
\nForeign exchange contracts relate for more than 95% to forward US dollar sales and purchases with a term of less than 12 months and relate to hedged items with a maturity of less than 12 months. Consequently, the net value of these derivatives is classified as a current asset or liability. Commodity contracts relate to coffee and cocoa sales-and-purchases contracts with a term of less than 12 months, and relate to hedged items with a maturity of less than 12 months. The maximum exposure to credit risk at the reporting date is the fair value of the derivative assets in the consolidated balance sheet.
\nThe total notional principal amounts of the outstanding forward foreign exchange contracts as at 31 December 2023 were $89.6 million bought and $28.2 million sold, resulting in a total net amount of $61.4 million (2022: $60.6 million), and \u00a31.5 million sold, resulting in a net position of -\u00a31.5 million (2022: \u00a30.6 million). Gains and losses recognized in the hedge reserve in equity (Note 14.2) on forward foreign exchange contracts as at 31 December 2023 are recognized in the income statement in the period or periods during which the hedged forecast transaction affects the income statement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-481": { "value": "\nThis section explains the judgments and estimates made in determining the fair values of the financial instruments that are recognized and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.
\nRecurring fair value measurements 31 December 2023 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 282 | - | 282 |
Hedging derivatives - commodity contracts | - | 28 | - | 28 |
Total financial assets | - | 310 | - | 310 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 1,611 | - | 1,611 |
Hedging derivatives - commodity contracts | - | 2,347 | - | 2,347 |
Total financial liabilities | - | 3,958 | - | 3,958 |
Recurring fair value measurements 31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
Financial assets | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 893 | - | 893 |
Hedging derivatives - commodity contracts | - | 2,656 | - | 2,656 |
Total financial assets | - | 3,549 | - | 3,549 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Financial liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Hedging derivatives - foreign currency contracts | - | 3,596 | - | 3,596 |
Hedging derivatives - commodity contracts | - | 1,443 | - | 1,443 |
Total financial liabilities | - | 5,039 | - | 5,039 |
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity securities) is based on quoted market prices at the end of the reporting period. These instruments are included in level 1.
\nLevel 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to determine the fair value of an instrument are observable, the instrument is included in level 2.
\nLevel 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.
\nForeign exchange contracts relate for more than 95% to forward US dollar sales and purchases with a term of less than 12 months and relate to hedged items with a maturity of less than 12 months. Consequently, the net value of these derivatives is classified as a current asset or liability. Commodity contracts relate to coffee and cocoa sales-and-purchases contracts with a term of less than 12 months, and relate to hedged items with a maturity of less than 12 months. The maximum exposure to credit risk at the reporting date is the fair value of the derivative assets in the consolidated balance sheet.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-487": { "value": "\nDerivatives are only used for economic hedging purposes and not as speculative investments. However, where derivatives do not meet the hedge accounting criteria, they are classified as \u2018held for trading\u2019 for accounting purposes and are accounted for at fair value through profit or loss. They are presented as current assets or liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-489": { "value": "\nCash and cash equivalents consist almost entirely of cash held in bank accounts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-490": { "value": "\nBank borrowings | 31 December 2023 | 31 December 2022 |
|---|---|---|
Non-current | \u00a0 | \u00a0 |
Bank borrowings | 121,342 | 122,428 |
Capitalized arrangement fees | (1,886) | (2,295) |
Total non-current | 119,456 | 120,133 |
| \u00a0 | \u00a0 | \u00a0 |
Current | \u00a0 | \u00a0 |
Bank overdrafts | 76,559 | 165,201 |
Bank borrowings short-term part | 792 | 650 |
Capitalized arrangement fees | (1,196) | (2,013) |
Total\u00a0current | 76,155 | 163,838 |
| \u00a0 | \u00a0 | \u00a0 |
Total bank borrowings | 195,611 | 283,971 |
The carrying amounts of bank borrowings approximate their fair value due to the variability of the interest rates. The bank borrowings are, to a large extent, borrowing base working capital facilities, with variable interest rates, secured by inventories and trade receivables.
\nThe movements in bank borrowings are as follows:
\n| \u00a0 | Non-current | Current |
|---|---|---|
1 January 2023 | 122,428 | 165,851 |
Transfer to current | (142) | 142 |
Net changes in bank borrowings | - | (89,199) |
Translation and currency differences | (944) | 557 |
31 December 2023 | 121,342 | 77,351 |
As at 31 December 2023, the Group had the following long-term bank borrowings:
A \u20ac3 million term loan (of which \u20ac1.5 million outstanding) with a final payment on 1 December 2032.
A \u20ac103.3 million and $16.7 million term loan, with full final repayment on 30 December 2027.
A \u20ac3.0 million and \u20ac1.6 million loan (\u20ac2.1 million of total outstanding), with a final payment on 28 November 2027.
A \u20ac0.3 million local term loan denominated in ETB (\u20ac0.2 million of total outstanding) with a final payment date of 21 March 2025.
Effective 28 August 2023, the Group implemented sustainability amendments to its main financing agreement. As a result, the Group currently has a sustainability-linked loan for its main financing needs. A framework of four KPI\u2019s and performance targets have been agreed with the lenders. Based on the performance on the targets a margin adjustment will be applied on the interest rate.
\nThe carrying amounts of the Group\u2019s bank borrowings are denominated in the following currencies:
\nNon-current bank borrowings | 31 December 2023 | 31 December 2022 |
|---|---|---|
Denominated in euros | 106,199 | 106,865 |
Denominated in US dollars | 15,092 | 15,563 |
Denominated in other currencies | 51 | - |
Total non-current bank borrowings | 121,342 | 122,428 |
The maturity of bank borrowings is as follows:
\nContractual repayments | 31 December 2023 | 31 December 2022 |
|---|---|---|
2023 | \u00a0 | 650 |
2024 | 792 | 666 |
2025 | 733 | 682 |
2026 | 699 | 699 |
after 2026 | 119,909 | 120,381 |
Total contractual repayments | 122,133 | 123,078 |
Total interest liabilities, based on current interest rates, contractual terms and year-end 2023 working capital financial levels, are approximately \u20ac13 million for 2024 and approximately \u20ac37.4 million in total for the years 2025-2027.
\nAs at 31 December 2023, the Group had the following bank overdrafts:
A borrowing base consisting of a \u20ac420 million revolving credit facility of which \u20ac360 million committed and \u20ac60 million uncommitted, with an additional accordion increase option of \u20ac100 million, maturing on 30 December 2025.
Short-term local facilities with variable interest rates to finance working capital of subsidiaries, secured by the Acomo parent company or intermediary Group holdings, in total amounting \u20ac2.5 million and $19.5 million and \u20ac3.9 million equivalent denominated in other currencies.
Financial covenants remain unchanged compared to previous year, as follows:
Interest cover ratio must exceed 4.0x or 3.5x subject to restrictions;
Solvency must be 30% or higher, or 25% subject to restrictions; and
Leverage ratio, applicable only on the two portions of the term loan (\u20ac103.3 million and $16.7 million), must not exceed 1.6x.
The Company is in full compliance with all covenants.
\nThe outstanding and undrawn amounts under the overdraft facilities as at 31 December 2023 are as follows:
\n| \u00a0 | In local currencies | \u00a0 | ||
|---|---|---|---|---|
Working capital overdraft facilities | Total lines | Outstanding | Undrawn | Available in \u20ac |
RCF | 420,000 | 71,615 | 348,385 | 348,385 |
Local US dollar lines | $ 19,470 | $ 5,185 | $ 14,285 | 12,941 |
Local euro lines | 2,500 | 100 | 2,400 | 2,400 |
Local lines (other currencies in \u20ac\u00a0equivalent) | 3,903 | 147 | 3,756 | 3,756 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total in euro equivalent | 444,041 | 76,559 | 367,482 | 367,482 |
This note provides information about the Group\u2019s non-financial assets and liabilities, including specific information about each type of non-financial asset and non-financial liability:
Intangible assets (Note 13.1)
Property, plant and equipment (Note 13.2)
Leases (Note 13.3)
Inventories (Note 13.4)
Deferred tax liabilities and assets (Note 13.5)
Retirement benefit obligations (Note 13.6)
Provisions (Note 13.7)
Intangible assets | Goodwill | Software | Under construction | Other | Total |
|---|---|---|---|---|---|
1 January 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost or valuation | 150,301 | 6,424 | 79 | 62,867 | 219,671 |
Accumulated amortization | - | (4,186) | - | (11,068) | (15,254) |
Net book amount | 150,301 | 2,238 | 79 | 51,799 | 204,417 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book amount | 150,301 | 2,238 | 79 | 51,799 | 204,417 |
Additions | 950 | 749 | (25) | - | 1,674 |
Amortization | - | (1,097) | - | (5,008) | (6,105) |
Intangibles taken into operation | - | 66 | - | - | 66 |
Exchange differences | 8,658 | (402) | - | 2,164 | 10,420 |
Closing net book amount | 159,909 | 1,554 | 54 | 48,955 | 210,472 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost or valuation | 159,909 | 6,837 | 54 | 65,031 | 231,831 |
Accumulated amortization | - | (5,283) | - | (16,076) | (21,359) |
Net book amount | 159,909 | 1,554 | 54 | 48,955 | 210,472 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|
2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book amount | 159,909 | 1,554 | 54 | 48,955 | 210,472 |
Additions | - | 1,565 | 278 | - | 1,843 |
Disposals | - | (4) | (53) | - | (57) |
Amortization | - | (915) | - | (4,851) | (5,766) |
Impairment | - | (141) | - | - | (141) |
Intangibles taken into operation | - | 9 | (9) | - | - |
Exchange differences | (3,098) | (42) | (2) | (984) | (4,126) |
Closing net book amount | 156,811 | 2,026 | 268 | 43,120 | 202,225 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31 December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost or valuation | 156,811 | 8,365 | 268 | 64,047 | 229,491 |
Accumulated amortization | - | (6,339) | - | (20,927) | (27,266) |
Net book amount | 156,811 | 2,026 | 268 | 43,120 | 202,225 |
The other intangible assets mainly consist of acquired customer relations, order books and trade names/certificates. The 2023 amortization charge of total \u20ac5.8 million (2022: \u20ac6.1 million) has been included in general and administrative expenses. The impairment loss of \u20ac0.1 million (2022: \u20ac\u00a0nil) relates to software in the Edible Seeds segment and has been included in general and administrative expenses.
\nA summary of the goodwill allocation by reportable segments is presented below.
\nGoodwill | 31 December 2023 | 31 December 2022 |
|---|---|---|
Spices and Nuts | 22,424 | 22,424 |
Edible Seeds | 28,963 | 29,691 |
Organic Ingredients | 89,566 | 91,570 |
Tea | 11,753 | 12,119 |
Food Solutions | 4,105 | 4,105 |
Total goodwill | 156,811 | 159,909 |
For the purpose of the annual impairment testing, goodwill is allocated to cash-generating units (\u2018CGUs\u2019) or groups of CGUs, identified at the level of operating segments. A cash generating unit (CGU) represents the lowest level within the Group at which goodwill is monitored for internal management purposes. The recoverable amount per CGU is based on its value in use and is determined by discounting the future cash flows to be generated from the continued use of the CGUs. The cash flow forecasts were derived from the financial budgets approved by management for 2024.
The pre-tax weighted average cost of capital (WACC) is estimated per CGU, based on a capital asset pricing model using an unlevered beta of 0.7. The WACC per CGU varies mainly due to differences in risk free rates. The applied WACC per different CGU varies between 9.4% and 11.3%.
A five-year forecast period is used (including approved 2024 budgets when applicable) followed by a terminal value based on perpetual 1.5% to 2.5% growth of revenues. Cash flows beyond 2024 are extrapolated using estimated growth rates. Cash flows beyond the five-year period are extrapolated taking into account a long-term average growth rate. The discount rates used are pre-tax and reflect specific risks relating to the relevant parts of the business.
After conducting impairment tests on all CGUs within the Group, no impairment was deemed necessary since the discounted future cash flows from the CGUs exceeded the carrying value (including goodwill) for each CGU.
\nIt is inherent in the method of computation used that a change in the assumptions may lead to a different conclusion on the impairment required. If the discount rate is assumed to be one percentage point higher than assumed in the individual impairment tests, no impairment would be required. The impairment tests performed separately would also not indicate any impairment if the future cash flows were set 10.0% lower than assumed.
\nThe key assumptions used for value-in-use calculations in 2023 and 2022 are as follows:
\nAssumptions 2023 | \u00a0 | Spices | Edible | Organic | Tea | Food |
|---|---|---|---|---|---|---|
Average future growth rates 2024-2028 | \u00a0 | 2.5% | 2.5% | 8.8% | 2.0% | 2.5% |
Long-term average growth rate (after 5 years) | \u00a0 | 2.5% | 2.0% | 2.5% | 1.5% | 2.0% |
Discount rate, pre-tax, average | \u00a0 | 9.4% | 11.1% | 10.3% | 11.3% | 9.6% |
Assumptions 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
Average future growth rates 2023-2027 | \u00a0 | 2.5% | 2.5% | 8.8% | 2.0% | 2.5% |
Long-term average growth rate (after 5 years) | \u00a0 | 2.5% | 2.0% | 2.5% | 1.5% | 2.0% |
Discount rate, pre-tax, average | \u00a0 | 8.2% | 10.2% | 9.5% | 10.7% | 8.3% |
Intangible assets | Goodwill | Software | Under construction | Other | Total |
|---|---|---|---|---|---|
1 January 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost or valuation | 150,301 | 6,424 | 79 | 62,867 | 219,671 |
Accumulated amortization | - | (4,186) | - | (11,068) | (15,254) |
Net book amount | 150,301 | 2,238 | 79 | 51,799 | 204,417 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book amount | 150,301 | 2,238 | 79 | 51,799 | 204,417 |
Additions | 950 | 749 | (25) | - | 1,674 |
Amortization | - | (1,097) | - | (5,008) | (6,105) |
Intangibles taken into operation | - | 66 | - | - | 66 |
Exchange differences | 8,658 | (402) | - | 2,164 | 10,420 |
Closing net book amount | 159,909 | 1,554 | 54 | 48,955 | 210,472 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost or valuation | 159,909 | 6,837 | 54 | 65,031 | 231,831 |
Accumulated amortization | - | (5,283) | - | (16,076) | (21,359) |
Net book amount | 159,909 | 1,554 | 54 | 48,955 | 210,472 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|
2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book amount | 159,909 | 1,554 | 54 | 48,955 | 210,472 |
Additions | - | 1,565 | 278 | - | 1,843 |
Disposals | - | (4) | (53) | - | (57) |
Amortization | - | (915) | - | (4,851) | (5,766) |
Impairment | - | (141) | - | - | (141) |
Intangibles taken into operation | - | 9 | (9) | - | - |
Exchange differences | (3,098) | (42) | (2) | (984) | (4,126) |
Closing net book amount | 156,811 | 2,026 | 268 | 43,120 | 202,225 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31 December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost or valuation | 156,811 | 8,365 | 268 | 64,047 | 229,491 |
Accumulated amortization | - | (6,339) | - | (20,927) | (27,266) |
Net book amount | 156,811 | 2,026 | 268 | 43,120 | 202,225 |
The other intangible assets mainly consist of acquired customer relations, order books and trade names/certificates. The 2023 amortization charge of total \u20ac5.8 million (2022: \u20ac6.1 million) has been included in general and administrative expenses. The impairment loss of \u20ac0.1 million (2022: \u20ac\u00a0nil) relates to software in the Edible Seeds segment and has been included in general and administrative expenses.
\nA summary of the goodwill allocation by reportable segments is presented below.
\nGoodwill | 31 December 2023 | 31 December 2022 |
|---|---|---|
Spices and Nuts | 22,424 | 22,424 |
Edible Seeds | 28,963 | 29,691 |
Organic Ingredients | 89,566 | 91,570 |
Tea | 11,753 | 12,119 |
Food Solutions | 4,105 | 4,105 |
Total goodwill | 156,811 | 159,909 |
For the purpose of the annual impairment testing, goodwill is allocated to cash-generating units (\u2018CGUs\u2019) or groups of CGUs, identified at the level of operating segments. A cash generating unit (CGU) represents the lowest level within the Group at which goodwill is monitored for internal management purposes. The recoverable amount per CGU is based on its value in use and is determined by discounting the future cash flows to be generated from the continued use of the CGUs. The cash flow forecasts were derived from the financial budgets approved by management for 2024.
The pre-tax weighted average cost of capital (WACC) is estimated per CGU, based on a capital asset pricing model using an unlevered beta of 0.7. The WACC per CGU varies mainly due to differences in risk free rates. The applied WACC per different CGU varies between 9.4% and 11.3%.
A five-year forecast period is used (including approved 2024 budgets when applicable) followed by a terminal value based on perpetual 1.5% to 2.5% growth of revenues. Cash flows beyond 2024 are extrapolated using estimated growth rates. Cash flows beyond the five-year period are extrapolated taking into account a long-term average growth rate. The discount rates used are pre-tax and reflect specific risks relating to the relevant parts of the business.
After conducting impairment tests on all CGUs within the Group, no impairment was deemed necessary since the discounted future cash flows from the CGUs exceeded the carrying value (including goodwill) for each CGU.
\nIt is inherent in the method of computation used that a change in the assumptions may lead to a different conclusion on the impairment required. If the discount rate is assumed to be one percentage point higher than assumed in the individual impairment tests, no impairment would be required. The impairment tests performed separately would also not indicate any impairment if the future cash flows were set 10.0% lower than assumed.
\nThe key assumptions used for value-in-use calculations in 2023 and 2022 are as follows:
\nAssumptions 2023 | \u00a0 | Spices | Edible | Organic | Tea | Food |
|---|---|---|---|---|---|---|
Average future growth rates 2024-2028 | \u00a0 | 2.5% | 2.5% | 8.8% | 2.0% | 2.5% |
Long-term average growth rate (after 5 years) | \u00a0 | 2.5% | 2.0% | 2.5% | 1.5% | 2.0% |
Discount rate, pre-tax, average | \u00a0 | 9.4% | 11.1% | 10.3% | 11.3% | 9.6% |
Assumptions 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
Average future growth rates 2023-2027 | \u00a0 | 2.5% | 2.5% | 8.8% | 2.0% | 2.5% |
Long-term average growth rate (after 5 years) | \u00a0 | 2.5% | 2.0% | 2.5% | 1.5% | 2.0% |
Discount rate, pre-tax, average | \u00a0 | 8.2% | 10.2% | 9.5% | 10.7% | 8.3% |
A summary of the goodwill allocation by reportable segments is presented below.
\nGoodwill | 31 December 2023 | 31 December 2022 |
|---|---|---|
Spices and Nuts | 22,424 | 22,424 |
Edible Seeds | 28,963 | 29,691 |
Organic Ingredients | 89,566 | 91,570 |
Tea | 11,753 | 12,119 |
Food Solutions | 4,105 | 4,105 |
Total goodwill | 156,811 | 159,909 |
For the purpose of the annual impairment testing, goodwill is allocated to cash-generating units (\u2018CGUs\u2019) or groups of CGUs, identified at the level of operating segments. A cash generating unit (CGU) represents the lowest level within the Group at which goodwill is monitored for internal management purposes. The recoverable amount per CGU is based on its value in use and is determined by discounting the future cash flows to be generated from the continued use of the CGUs. The cash flow forecasts were derived from the financial budgets approved by management for 2024.
The pre-tax weighted average cost of capital (WACC) is estimated per CGU, based on a capital asset pricing model using an unlevered beta of 0.7. The WACC per CGU varies mainly due to differences in risk free rates. The applied WACC per different CGU varies between 9.4% and 11.3%.
A five-year forecast period is used (including approved 2024 budgets when applicable) followed by a terminal value based on perpetual 1.5% to 2.5% growth of revenues. Cash flows beyond 2024 are extrapolated using estimated growth rates. Cash flows beyond the five-year period are extrapolated taking into account a long-term average growth rate. The discount rates used are pre-tax and reflect specific risks relating to the relevant parts of the business.
After conducting impairment tests on all CGUs within the Group, no impairment was deemed necessary since the discounted future cash flows from the CGUs exceeded the carrying value (including goodwill) for each CGU.
\nIt is inherent in the method of computation used that a change in the assumptions may lead to a different conclusion on the impairment required. If the discount rate is assumed to be one percentage point higher than assumed in the individual impairment tests, no impairment would be required. The impairment tests performed separately would also not indicate any impairment if the future cash flows were set 10.0% lower than assumed.
\nThe key assumptions used for value-in-use calculations in 2023 and 2022 are as follows:
\nAssumptions 2023 | \u00a0 | Spices | Edible | Organic | Tea | Food |
|---|---|---|---|---|---|---|
Average future growth rates 2024-2028 | \u00a0 | 2.5% | 2.5% | 8.8% | 2.0% | 2.5% |
Long-term average growth rate (after 5 years) | \u00a0 | 2.5% | 2.0% | 2.5% | 1.5% | 2.0% |
Discount rate, pre-tax, average | \u00a0 | 9.4% | 11.1% | 10.3% | 11.3% | 9.6% |
Assumptions 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
Average future growth rates 2023-2027 | \u00a0 | 2.5% | 2.5% | 8.8% | 2.0% | 2.5% |
Long-term average growth rate (after 5 years) | \u00a0 | 2.5% | 2.0% | 2.5% | 1.5% | 2.0% |
Discount rate, pre-tax, average | \u00a0 | 8.2% | 10.2% | 9.5% | 10.7% | 8.3% |
The movements in property, plant and equipment are as follows:
\n1 January 2022 | Land and | Vehicles and | Furniture, | Assets under | Total |
|---|---|---|---|---|---|
Cost or valuation | 27,319 | 64,655 | 4,617 | 2,489 | 99,080 |
Accumulated depreciation | (10,058) | (32,622) | (2,905) | - | (45,585) |
Net book amount | 17,261 | 32,033 | 1,712 | 2,489 | 53,495 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book amount | 17,261 | 32,033 | 1,712 | 2,489 | 53,495 |
Investments | 131 | 3,559 | 274 | 1,796 | 5,760 |
Disposals | - | (182) | (208) | - | (390) |
Depreciation | (1,348) | (7,527) | (525) | - | (9,400) |
Assets taken into operation | 461 | 2,499 | 105 | (3,065) | \u00a0 |
Exchange differences | 510 | 636 | 199 | 1,540 | 2,885 |
Closing net book amount | 17,015 | 31,018 | 1,557 | 2,760 | 52,350 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31\u00a0December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost or valuation | 28,421 | 71,167 | 4,987 | 2,760 | 107,335 |
Accumulated depreciation | (11,406) | (40,149) | (3,430) | \u00a0 | (54,985) |
Net book amount | 17,015 | 31,018 | 1,557 | 2,760 | 52,350 |
2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|
Opening net book amount | 17,015 | 31,018 | 1,557 | 2,760 | 52,350 |
Investments | 960 | 2,614 | 219 | 948 | 4,741 |
Disposals | (7) | (103) | - | - | (110) |
Depreciation | (1,353) | (6,161) | (485) | - | (7,999) |
Impairments | (275) | (1,057) | (4) | - | (1,336) |
Assets taken into operation | 314 | 1,376 | 30 | (1,720) | - |
Exchange differences | (391) | (547) | (37) | (56) | (1,031) |
Closing net book amount | 16,263 | 27,140 | 1,280 | 1,932 | 46,615 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cost or valuation | 29,297 | 74,507 | 5,199 | 1,932 | 110,935 |
Accumulated depreciation | (13,034) | (47,367) | (3,919) | - | (64,320) |
Net book amount | 16,263 | 27,140 | 1,280 | 1,932 | 46,615 |
The 2023 depreciation charge of total \u20ac8.0 million (2022: \u20ac9.4 million) has been included in cost of goods sold (\u20ac6.5 million) and general and administrative expenses (\u20ac1.5 million). The impairment loss of \u20ac1.3 million (2022: \u20ac\u00a0nil) mainly relates to machinery and leasehold improvements in the Edible Seeds segment that were written down to recoverable amount, and has been included in cost of goods sold.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-499": { "value": "\nThe balance sheet shows the following amounts relating to leases:
\nRight-of-use assets | 31 December 2023 | 31 December 2022 |
|---|---|---|
Buildings | 14,793 | 16,098 |
Vehicles and machinery | 967 | 885 |
Furniture, fittings and equipment | 640 | 425 |
Total | 16,400 | 17,408 |
Additions to the right-of-use assets during 2023 were \u20ac2.5 million (2022: \u20ac1.0 million).
\nThe movement in the lease liabilities is as follows:
\nLease liabilities | 2023 |
|---|---|
1 January | 18,249 |
New leases | 2,495 |
Remeasurements | 985 |
Payment of leases | (4,575) |
Interest | 616 |
Exchange differences | (419) |
31 December | 17,351 |
Of which: | \u00a0 |
| 4,165 |
| 13,186 |
Total | 17,351 |
The maturity analysis of lease liabilities is presented below.
\nMaturity analysis | Total |
|---|---|
2024 | 4,165 |
2025 | 3,895 |
2026 | 3,007 |
2027 | 2,141 |
2028 | 1,713 |
Onwards | 2,430 |
Total | 17,351 |
Depreciation charge of right-of-use assets | Note | 2023 | 2022 |
|---|---|---|---|
Buildings | \u00a0 | 3,543 | 3,512 |
Vehicles and machinery | \u00a0 | 421 | 478 |
Furniture, fittings and equipment | \u00a0 | 174 | 168 |
Total | \u00a0 | 4,138 | 4,158 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest expense (included in finance costs) | 9 | 616 | 611 |
The total cash outflow for leases in 2023 was \u20ac4.6 million (2022: \u20ac4.6 million). Expense relating to short-term leases and low-value assets in 2023 was \u20ac3.3 million (2022: \u20ac2.9 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-500": { "value": "\nInventories | 31 December 2023 | 31 December 2022 |
|---|---|---|
Raw materials | 46,032 | 60,922 |
Semi-finished products | 9,787 | 24,990 |
Finished goods | 247,933 | 289,799 |
Packaging materials and supplies | 7,136 | 8,679 |
Total inventories | 310,888 | 384,390 |
The cost of inventories recognized as expense and included in cost of goods sold amounted to \u20ac987.0 million (2022: \u20ac1,141 million). As at 31 December 2023, the provision for write-down of inventories to net realizable value amounted to \u20ac6.6 million (2022: \u20ac7.5 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-501": { "value": "\nDeferred income tax position | 31 December 2023 | 31 December 2022 |
|---|---|---|
Deferred tax assets | 367 | 275 |
Deferred tax liabilities | (12,479) | (12,696) |
Deferred tax liabilities, net | (12,112) | (12,421) |
The movement in the total deferred income tax position is as follows:
\nTotal deferred income tax position | 2023 | 2022 |
|---|---|---|
1 January | (12,421) | (12,901) |
Recognized in OCI | (18) | (45) |
Recognized in income | 1,308 | 975 |
Currency translation effects | 154 | (211) |
Other movements | (1,135) | (239) |
31\u00a0December | (12,112) | (12,421) |
The movement in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:
\nMovements 2023 | 1 January | Recognized in OCI | Recognized | Currency | Other movements | 31 December |
|---|---|---|---|---|---|---|
Intangible assets | (5,998) | - | 614 | 65 | (847) | (6,166) |
Property, plant and equipment | (3,746) | - | 848 | 88 | 19 | (2,791) |
Inventories | (4,208) | - | 1,444 | (2) | 131 | (2,635) |
Current assets and liabilities, net | 1,719 | 11 | (1,383) | 14 | (441) | (80) |
Pension provisions | 452 | (29) | 29 | (14) | 3 | 441 |
Other provisions | (122) | - | 33 | 3 | - | (86) |
Long-term debt | (518) | - | (277) | - | - | (795) |
Total | (12,421) | (18) | 1,308 | 154 | (1,135) | (12,112) |
Movements 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
Intangible assets | (4,788) | - | 669 | 1 | (1,880) | (5,998) |
Property, plant and equipment | (4,458) | - | (159) | (314) | 1,185 | (3,746) |
Inventories | (3,877) | - | (405) | 5 | 69 | (4,208) |
Current assets and liabilities, net | 573 | 75 | 735 | (51) | 387 | 1,719 |
Pension provisions | 535 | (120) | (118) | 155 | - | 452 |
Other provisions | (115) | - | - | (7) | - | (122) |
Long-term debt | (771) | - | 253 | - | - | (518) |
Total | (12,901) | (45) | 975 | (211) | (239) | (12,421) |
An amount of \u20ac1.1 million (2022: \u20ac1.0 million) is expected to be recovered within 12 months.
\nDeferred tax assets and liabilities relate to the balance sheet captions as at 31 December 2023 and 2022 as follows:
\n2023 | Assets | Liabilities | Net |
|---|---|---|---|
Intangible assets | 540 | (6,706) | (6,166) |
Property, plant and equipment | - | (2,791) | (2,791) |
Inventories | 495 | (3,130) | (2,635) |
Current assets and liabilities, net | 1,068 | (1,148) | (80) |
Pension provisions | 441 | - | 441 |
Other provisions | - | (86) | (86) |
Long-term debt | - | (795) | (795) |
Total | 2,544 | (14,656) | (12,112) |
Set-off | (2,177) | 2,177 | - |
Net position | 367 | (12,479) | (12,112) |
2022 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
Intangible assets | 349 | (6,347) | (5,998) |
Property, plant and equipment | - | (3,746) | (3,746) |
Inventories | 84 | (4,292) | (4,208) |
Current assets and liabilities, net | 1,719 | - | 1,719 |
Pension provisions | 452 | - | 452 |
Other provisions | - | (122) | (122) |
Long-term debt | - | (518) | (518) |
Total | 2,604 | (15,025) | (12,421) |
Set-off | (2,329) | 2,329 | - |
Net position | 275 | (12,696) | (12,421) |
As at 31 December 2023 deferred income tax liabilities of \u20ac1.9 million (2022: \u20ac2.2 million) have not been recognized for withholding tax and other taxes that would be payable on the unremitted earnings of certain subsidiaries. Such amounts are permanently reinvested. Unremitted earnings totalled \u20ac18.8 million as at 31 December 2023 (2022: \u20ac20.0 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-503": { "value": "\n| \u00a0 | Legal | Other | Total |
|---|---|---|---|
1 January 2023 | 180 | 351 | 531 |
Used | - | (342) | (342) |
(Released)/charged to the income statement | (40) | 97 | 57 |
Exchange differences | (1) | (2) | (3) |
31\u00a0December 2023 | 139 | 104 | 243 |
Analysis of other provisions | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
Non-current | 139 | 104 | 243 |
Current | - | - | - |
Total other provisions | 139 | 104 | 243 |
Included is a provision for certain claims brought against the Group by third parties, the outcome of which is uncertain. The provision charge is recognized in profit or loss within General cost. In management\u2019s opinion, taken into account all known facts and circumstances as at 31 December 2023 and after taking appropriate legal advice, the outcome of these legal claims will not give rise to any significant loss beyond the amounts provided as at 31 December 2023.
\nOther provisions mainly relate to short positions outstanding at year-end of which contract prices of goods to be delivered were lower than the market price of the goods at year-end and to other onerous trading contracts.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-504": { "value": "\nThe total authorized number of ordinary shares is 66.7 million shares (2022: 66.7 million shares) with a par value of \u20ac0.45 per share (2022: \u20ac0.45 per share). All 29.6 million issued shares (31 December 2022: 29.6 million) are fully paid.
\nThe movements during 2023 and 2022 are as follows:
\nShare capital and share premium reserve | Number of | Share | Share | Total |
|---|---|---|---|---|
1\u00a0January 2022 | 29,609,871 | 13,325 | 155,105 | 168,430 |
New shares issued | 7,875 | 4 | 164 | 168 |
31\u00a0December 2022 | 29,617,746 | 13,329 | 155,269 | 168,598 |
31\u00a0December 2023 | 29,617,746 | 13,329 | 155,269 | 168,598 |
Other reserves | Currency | Share | Hedge | Other | Total |
|---|---|---|---|---|---|
1\u00a0January 2022 | 22,096 | 341 | (31) | (304) | 22,102 |
Cash flow hedges | - | - | (219) | - | (219) |
Share based payments | - | 133 | - | - | 133 |
Currency translation adjustments (CTA) | 23,583 | - | - | - | 23,583 |
Remeasurement gains/(losses) on defined benefit plans | - | - | - | 375 | 375 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31\u00a0December 2022 | 45,679 | 474 | (250) | 71 | 45,974 |
Cash flow hedges | - | - | (32) | - | (32) |
Share based payments | - | 278 | - | - | 278 |
Currency translation adjustments (CTA) | (10,930) | - | - | - | (10,930) |
Remeasurement gains/(losses) on defined benefit plans | - | - | - | 90 | 90 |
31\u00a0December 2023 | 34,749 | 752 | (282) | 161 | 35,380 |
The currency translation reserve comprises all translation differences arising from the translation of the net investment in group companies, including goodwill, in currencies other than the euro. The share option plan reserve comprises the value of vested rights in respect of the share option plan (Note 15) as far as stock options have not been exercised.
\nThe hedge reserve comprises the unrealized gains related to cash flow hedges. Pursuant to Dutch law, limitations exist relating to the distribution of shareholders\u2019 equity of \u20ac48.8 million (2022: \u20ac59.5 million). Such limitations relate to share capital as well as to legal reserves required by Dutch law included under other reserves.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-505": { "value": "\nOther reserves | Currency | Share | Hedge | Other | Total |
|---|---|---|---|---|---|
1\u00a0January 2022 | 22,096 | 341 | (31) | (304) | 22,102 |
Cash flow hedges | - | - | (219) | - | (219) |
Share based payments | - | 133 | - | - | 133 |
Currency translation adjustments (CTA) | 23,583 | - | - | - | 23,583 |
Remeasurement gains/(losses) on defined benefit plans | - | - | - | 375 | 375 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31\u00a0December 2022 | 45,679 | 474 | (250) | 71 | 45,974 |
Cash flow hedges | - | - | (32) | - | (32) |
Share based payments | - | 278 | - | - | 278 |
Currency translation adjustments (CTA) | (10,930) | - | - | - | (10,930) |
Remeasurement gains/(losses) on defined benefit plans | - | - | - | 90 | 90 |
31\u00a0December 2023 | 34,749 | 752 | (282) | 161 | 35,380 |
The currency translation reserve comprises all translation differences arising from the translation of the net investment in group companies, including goodwill, in currencies other than the euro. The share option plan reserve comprises the value of vested rights in respect of the share option plan (Note 15) as far as stock options have not been exercised.
\nThe hedge reserve comprises the unrealized gains related to cash flow hedges. Pursuant to Dutch law, limitations exist relating to the distribution of shareholders\u2019 equity of \u20ac48.8 million (2022: \u20ac59.5 million). Such limitations relate to share capital as well as to legal reserves required by Dutch law included under other reserves.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-506": { "value": "\nShare options are granted to management and to selected employees. The establishment of Acomo\u2019s share option plan was approved by shareholders at the Annual General Meeting of 27 May 2010. The share option plan is aimed at retaining key managers and employees of the Company and its subsidiaries, including executive directors of the Board. Under the plan, participants are granted options which only vest and can be exercised on the continued employment of the participant in the Group. Participation in the plan is at the Board of Directors\u2019 discretion.
\nThe options have a contractual option term of seven years. All options vest in a six-year period with the first vesting three years after granting of the options. Options are granted under the plan for no consideration and carry no dividend or voting rights. When exercisable, each option is convertible into one ordinary share. The Group has no legal or constructive obligation to repurchase or settle the options in cash.
\nTotal 2023 share-based payment expenses charged to the consolidated statement of income amounted to \u20ac278 (2022: \u20ac133).
\nThe table below shows the movement of share options outstanding at the end of the year with their respective vesting dates, expiry dates and exercise prices.
\nYear of grant | Vesting date | Expiry date | Outstanding 1 January 2023 | Granted 2023 | Outstanding 31 December 2023 | Exercise price per option (\u20ac) |
|---|---|---|---|---|---|---|
2018 | 1 April 2021 | 1 April 2025 | 5,250 | \u00a0 | 5,250 | 21.30 |
2019 | 1 July 2022 | 1 July 2026 | 12,000 | \u00a0 | 12,000 | 18.74 |
| \u00a0 | 1 July 2023 | 1 July 2026 | 6,000 | \u00a0 | 6,000 | 18.74 |
| \u00a0 | 1 July 2024 | 1 July 2026 | 10,000 | \u00a0 | 10,000 | 18.74 |
| \u00a0 | 1 July 2025 | 1 July 2026 | 12,000 | \u00a0 | 12,000 | 18.74 |
2020 | 30 April 2023 | 30 April 2027 | 15,000 | \u00a0 | 15,000 | 16.83 |
| \u00a0 | 30 April 2024 | 30 April 2027 | 7,500 | \u00a0 | 7,500 | 16.83 |
| \u00a0 | 30 April 2025 | 30 April 2027 | 12,500 | \u00a0 | 12,500 | 16.83 |
| \u00a0 | 30 April 2026 | 30 April 2027 | 15,000 | \u00a0 | 15,000 | 16.83 |
2021 | 2 January 2024 | 2 January 2028 | 30,000 | \u00a0 | 30,000 | 20.81 |
| \u00a0 | 2 January 2025 | 2 January 2028 | 15,000 | \u00a0 | 15,000 | 20.81 |
| \u00a0 | 2 January 2026 | 2 January 2028 | 25,000 | \u00a0 | 25,000 | 20.81 |
| \u00a0 | 2 January 2027 | 2 January 2028 | 30,000 | \u00a0 | 30,000 | 20.81 |
| \u00a0 | 15 September 2024 | 15 September 2028 | 36,000 | \u00a0 | 36,000 | 23.80 |
| \u00a0 | 15 September 2025 | 15 September 2028 | 18,000 | \u00a0 | 18,000 | 23.80 |
| \u00a0 | 15 September 2026 | 15 September 2028 | 30,000 | \u00a0 | 30,000 | 23.80 |
| \u00a0 | 15 September 2027 | 15 September 2028 | 36,000 | \u00a0 | 36,000 | 23.80 |
2023 | 1 June 2026 | 1 June 2030 | \u00a0 | 5,250 | 5,250 | 22.11 |
| \u00a0 | 1 June 2027 | 1 June 2030 | \u00a0 | 2,625 | 2,625 | 22.11 |
| \u00a0 | 1 June 2028 | 1 June 2030 | \u00a0 | 4,375 | 4,375 | 22.11 |
| \u00a0 | 1 June 2029 | 1 June 2030 | \u00a0 | 5,250 | 5,250 | 22.11 |
Total | \u00a0 | \u00a0 | 315,250 | 17,500 | 332,750 | \u00a0 |
The fair value at grant date is independently determined using the Black-Scholes model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the Acomo share, the expected dividend yield and the risk-free interest rate for the term of the option. The volatility measured at the standard deviation of continuously compound share returns is based on statistical analysis of the Acomo share, measured over a historic period equal to the expected life.
\nThe model inputs are set out below:
\nYear of grant | Fair value per option at grant date (\u20ac) | Share price (\u20ac) | Strike price (\u20ac) | Volatility | Dividend yield | Annual risk-free rate |
|---|---|---|---|---|---|---|
2018 | 1.25 | 21.30 | 21.30 | 17.50% | 4.60% | 0.19% |
2019 | 0.95 | 18.74 | 18.74 | 17.50% | 4.60% | -0.60% |
2020 | 1.89 | 19.64 | 16.83 | 20.00% | 4.80% | -0.70% |
2021 | 1.87 | 20.90 | 20.81 | 22.50% | 4.30% | -0.75% |
2021 | 1.87 | 23.50 | 23.80 | 22.50% | 4.80% | -0.61% |
2023 | 2.53 | 22.20 | 22.11 | 22.50% | 5.20% | 2.20% |
The Group has contingent liabilities in respect of legal claims arising in the ordinary course of business. Besides the recognized provisions (Note 13.7), the Company is from time to time involved in liability disputes.
\nUnder certain circumstances, Acomo or its customers may be required to recall or withdraw products. This could result in significant losses. The Group maintains product recall and general liability insurance levels that it believes to be adequate. However, Acomo cannot assure that no liability claims are incurred which are not covered by insurance policies. These claims could potentially have a materially adverse effect on the financial position of the Company. Besides the claims provided for (Note 13.7), the Company cannot reasonably predict potential financial losses to the Company arising from other disputes and/or claims.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-508": { "value": "\nUnder certain circumstances, Acomo or its customers may be required to recall or withdraw products. This could result in significant losses. The Group maintains product recall and general liability insurance levels that it believes to be adequate. However, Acomo cannot assure that no liability claims are incurred which are not covered by insurance policies. These claims could potentially have a materially adverse effect on the financial position of the Company. Besides the claims provided for (Note 13.7), the Company cannot reasonably predict potential financial losses to the Company arising from other disputes and/or claims.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-509": { "value": "\nThe Group has contingent liabilities in respect of legal claims arising in the ordinary course of business. Besides the recognized provisions (Note 13.7), the Company is from time to time involved in liability disputes.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "ixv-512": { "value": "\nKey management personnel disclosures are included in Note 2.7 of the Company financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:7245001M40ANG7IIS437", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } } } }