INTERIM FINANCIAL REPORT

HALF-YEAR ENDED 30TH JUNE 2022

(UNAUDITED)

GROUPE SOCFIN • SOCFINAF

4, Avenue Guillaume • 1650 Luxembourg • Luxembourg • T : + 352 44 28 77 • E: info@socfin.com • www.socfin.comRC Luxembourg B 6225

SOCFINAF S.A.

Board of Directors

Mr. Hubert Fabri

Chairman

Mr. Vincent Bolloré

Director

Bolloré Participations SE represented by Mr. Cyrille Bolloré

Director

Mr. Gbenga Oyebode

Director

Mr. François Fabri

Director

Mr. Philippe Fabri

Director

Mr. Frédéric Lemaire

Director

Chief Financial Officer

Mr. Daniel Haas

Independent statutory auditor

ERNST & YOUNG S.A. "EY"

Registered office

4, avenue Guillaume L-1650 Luxembourg

Telephone:

(+352)

44 28 77

Telefax:

(+352)

44 28 77 50

E-mail:

info@socfin.com

Internet:

www.socfin.com

Socfinaf - Consolidated financial statements 30/06/2022 - p. 2

Statement of compliance

Mr. Philippe Fabri, Director and Mr. Daniel Haas, Chief Financial Officer, indicate that, to the best of their knowledge,

  1. the interim consolidated financial statements prepared for the period ended at 30th June 2022, in accordance with the international accounting standards adopted by the European Union, provide a true and fair view of the assets and liabilities, the financial position and the profits or losses attributable to Socfinaf and all of the entities included in consolidation; and
  2. the interim management report fairly presents the evolution and results of the Company, the financial position of the Group and all the entities included in the consolidation and a description of the main risks and uncertainties they face.

Socfinaf - Consolidated financial statements 30/06/2022 - p. 3

Management report on the interim consolidated financial statements asat 30th June 2022

The Board of Directors meeting on 21st September 2022 reviewed the interim consolidated financial statements as at 30th June 2022.

These interim consolidated financial statements have not been audited, nor have they been subject to a limited review by the independent statutory auditor.

Activities

The Company holds interests in companies that operate directly or indirectly in Tropical Africa, in the production of rubber and palm oil.

Portfolio

During the first semester of 2022, Sodimex (associate), located in Belgium, was liquidated.

Consolidated income

At 30th June 2022, the consolidated result attributable to the Group is EUR 58.1 million compared to EUR 42.1 million at 30th June 2021. This results in a net profit per share of EUR 3.26 compared to EUR 2.36 as at 30th June 2021.

Consolidated revenues for the first half of 2022 amount to EUR 363.4 million compared to EUR 282.6 million in the previous year (EUR +80.8 million). This increase in turnover is mainly due to the increase in crude palm oil prices (EUR +66.8 million), increase in quantities sold (EUR +9.1 million) and to the exchange rate effect between the sales currencies (EUR +7.3 million).

Operating profits amount to EUR 144.3 million compared to EUR 91.4 million at 30th June 2021.

Financial expenses amount to EUR 22.7 million at 30th June 2022 compared to EUR 11.7 million at 30th June 2021. This change is mainly due to foreign exchange losses for EUR 14.7 million (compared to EUR 4.0 million in 2021).

Other financial income amount to EUR 4.4 million (EUR 0.3 million at 30th June 2021). They are mainly due to foreign exchange gains.

The income tax expense is at EUR 37.7 million compared to EUR 23.9 million at 30th June 2021 due to the increase in the net profit before tax.

The deferred tax expense amount to EUR 4.4 million at 30th June 2022, compared to a deferred tax income of EUR 4.5 million at 30th June 2021.

Consolidated statement of financial position

As at 30th June 2022, Socfinaf's total balance sheet amounts to EUR 994.4 million which represent an increase of EUR

104.0 million compared to the position as at 31st December 2021. Socfinaf's assets consist of:

  • non-currentassets amounting to EUR 696.0 million compared to EUR 681.6 million as at 31st December 2021, an increase of EUR 14.5 million mainly linked to the increase in property, plant and equipment (increase of EUR 12.5 million);
  • current assets amounting to EUR 298.4 million compared to EUR 208.9 million as at 31st December 2021, an increase of EUR 89.5 million mostly explained by increases in cash position for EUR 52.5 million, in inventories for EUR 15.6 million and in other receivables for 10.7 million.

Shareholders' equity attributable to the Group amount to EUR 398.8 million compared to EUR 315.3 million as at 31st December 2021. The increase in shareholders' equity of EUR 83.5 million is mainly due to the half year results (EUR 58.1 million) and an increase in the translation reserves (EUR 25.4 million).

Socfinaf - Consolidated financial statements 30/06/2022 - p. 4

Based on the consolidated shareholders' equity, the net assets per share is EUR 22.36 as at 30th June 2022 compared to EUR 17.68 as at 31st December 2021.

As at 30th June 2022, Socfinaf's share price is EUR 14.00.

Current and non-current liabilities increase to EUR 463.5 million compared to EUR 454.0 million six months earlier. Financial debt decrease to EUR 200.8 million from EUR 270.3 million as at 31st December 2021.

Net debt before IFRS adjustments, including financial items, net cash pooling position, cash and cash equivalents and advances from shareholders included in "other payables", amounts to EUR 165.2 million.

Consolidated cash flow

As at 30th June 2022, net cash and cash equivalents amount to EUR 115.5 million, an increase of EUR 59.5 million over the first half of the year (compared to an increase of EUR 50.7 million during the first semester 2021).

The cash flow from operating activities amount to EUR 148.4 million as at 30th June 2022 compared to EUR 105.9 million as at 30th June 2021. The net cash flow from operating activities is EUR 176.3 million at closing date compared to EUR 108.2 million one year earlier.

Investing activities mobilised EUR 23.3 million compared to EUR 21.2 million in the first half of 2021, which was mainly for the acquisition of property, plant and equipment.

Financing activities mobilised EUR 96.2 million in the first half of 2022 (compared to EUR 35.8 million in the first half of 2021), of which EUR 22.6 million was for the distribution of dividends and EUR 65.4 million for the net reduction of the debt.

Outlook 2022

The results will depend, to a large extent, on factors which are beyond the control of the management of the Group, namely the political and economic conditions in the countries where the subsidiaries are established, the changes in price of rubber and palm oil, and the exchange of local currencies and US dollar against the Euro. The Group, for its part, pursues its policy of keeping cost prices as low as possible and improving its production capacity.

In Nigeria, the availability of hard currency is extremely limited. The gap between the central bank rate (CBN) and OTC rates is widening. The discount reaches 30-35% by 30 June 2022. For consolidation purposes, the Group uses the Central Bank of Nigeria (CBN) rates. These rates are disclosed in Note 1.5 to the financial statements. The impact of the Group's Nigerian operations on the consolidated result is disclosed in Note 18 (Segmental information) to the financial statements. Management closely monitors developments in the Nigerian foreign exchange markets and is keen to present a fair view of the financial statements.

Distribution of an interim dividend

Considering the level of indebtedness as at 30th June 2022, the Board of Directors does not plan to distribute any interim dividend.

Socfinaf - Consolidated financial statements 30/06/2022 - p. 5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Socfinaf SA published this content on 22 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2022 10:29:05 UTC.