Dekel Agri-Vision has announced the launch of a €15.2m, 7-year bond facility. This bond, which has been approved by the Ivorian regulator, forms part of a long-term refinancing programme to extend the maturity of the debt profile of the group and strengthen the balance sheet, to facilitate the company's growth strategy.
Companies: Dekel Agri-Vision Plc
Dekel Agri-Vision has announced that following significant advances made in 2020 preparing for the Round Table for the Sustainable Palm Oil (‘RSPO') certification process, it has now engaged Proforest to undertake the final RSPO pre-audit of the Company's 100%-owned, vertically integrated palm oil project at Ayenouan, Cote d'Ivoire.
Dekel Agri-Vision has announced palm oil production figures for Q4, 2020 and the year ended 31 December 2020. The Company ended FY2020 with strong momentum following a good performance in CPO production in Q4, 2020 and with CPO prices in international markets above US$1,000/MT, as the company enters its high season period in H1, 2021.
Dekel Agri-Vision has announced a positive set of palm oil production figures for November 2020. Fresh fruit bunches (FFB) processed were up 39% in November 2020 at 7,441MT, compared with 5,350MT in November 2019. CPO production was up 38% at 1,530MT, compared with 1,108MT in November 2019. CPO sales in November 2020 were up 22% to 1,515MT, from 1,243MT in November 2019. The average CPO price for November 2020 was €664/MT, 26% higher than November 2019, when the CPO price was just €525MT.
Dekel Agri-Vision has announced that it has acquired an additional 2% interest in its majority-owned cashew nut processing project in Tiebissou, Côte d'Ivoire. This brings Dekel Agri-Vision's total interest in the project to 54%. The cashew nut plant which is currently under construction, is on track to be commissioned and operational in Q2, 2021.
Dekel Agri-Vision has announced the completion of the acquisition of an addition 14.2% interest in the large-scale cashew nut processing project, currently under construction in Tiebissou, Côte d'Ivoire. (The company's intention to acquire this additional interest was first announced on 3 November 2020). Following completion, Dekel Agri-Vision now owns a 52% controlling interest in the project, which is on track for first production in Q2, 2021. We have consolidated revenues and earnings from the cashew business into our group financials and reflected the increased 52% profit contribution from the cashew project. As a result, we have increased our target price, based on our DCF valuation to 8.1p from 7.6p, reflecting a market cap of £36.7m, up from £32.2m, and compared to a current market cap of £10.2m. We reiterate our Buy recommendation.
Dekel Agri-Vision has announced a positive set of palm oil production figures for October 2020. Fresh fruit bunches processed were up 15% in Oct 2020 at 9,350MT, compared with 8,118MT in Oct 2019. CPO production was up 19% at 1,818MT, compared with 1,528MT in Oct 2019, benefitting from higher extraction rates than in October last year. CPO sales in October 2020 were up 40% to 1,843MT, from 1,319MT in Oct 2019. The average CPO price for Oct 2020 was €636/MT, 28% higher than October 2019, when the CPO price was just €495/MT.
Dekel Agri-Vision has announced that it has agreed to acquire an additional 14.2% interest in its Tiebissou-based cashew nut processing project. This will increase the Company's interest in the project to a controlling stake of 52.0%. Dekel Agri-Vison continues to retain an option over a further 16.7% interest in Pearlside (owner of Capro CI SA, developer of the cashew nut processing project).
Dekel Agri-Vision has announced palm oil production figures for the month of September 2020 and for Q3, 2020. September 2020 figures were particularly positive, with a 36% increase in FFBs processed to 9,274MT compared with 6,802MT in September 2019. CPO production was up 54% to 1,965MT and CPO sold was up 35% to 1,977MT compared with the same month, a year ago. Average CPO price was up 38% to €604/MT in September 2020, compared with €438/MT in September 2019.
Dekel Agri-Vision reported revenue of €15.4m in H1, 2020, an increase of 5.5% on €14.6m reported in H1, 2019. EBITDA increased by 36% to €1.9m in H1, 2020 from €1.4m in H1, 2019. The company made a net profit after tax of €0.4m in H1, 2020, compared with a net loss of -€0.1m in the same period a year earlier.
Initiating with a Buy rating – We initiate our coverage on Dekel Agri-Vision with a BUY rating and a target price of 7.6p, equating to a market capitalisation of £32.2m. We believe Dekel Agri-Vision's agri-commodity diversification strategy, complementing its existing palm oil processing operations with a new cashew nut processing project (in which the company currently has a 43.8% interest, and an option to acquire a further 17%), provides a solid platform to enhance margins and drive step changes in profitability in the coming years.
Côte d'Ivoire palm oil producer DekelOil Public Limited (DKL LN)# has announced a production and sales update for Q3 2019.
Côte d’Ivoire palm oil producer DekelOil Public Limited (DKL LN)# has announced interim results for the period ended 30 June 2019.
Revenue: €14.6m, +3.5% YoY (H1 2018: €14.1m)
EBITDA: €1.4m, +27.3% YoY (H1 2018: €1.1m)
Loss Before Tax: €0.1m (H1 2018: €0.5m)
Cash & Cash Equivalents: €0.93m (31 December 2018: €0.26m)
Average Crude Palm Oil (CPO) Price Realised: €505/t, -8.0% YoY (H1 2018: €549/t)
Average Palm Kernel Oil (PKO) Price Realised: €589/t, -34.0% YoY (H1 2018: €893/t)
CPO Production: 28,934t, +30.1% YoY (H1 2018: 22,242t)
DekelOil Public Limited (DKL LN)# has commenced operations at a second nursey site in Côte d'Ivoire, at Dabou, located west of Abidjan.
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Further media reports that Dr Martens, the British Boot brand is planning an IPO on the LSE. It is currently owned by PE group, Permira who is expected to sell down its stake at the IPO. March 2020 YE the group had revenues of £672m and EBITDA of £184m. Deal size TBC. Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the "London Cocktail Club"), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol. Offer TBC Due mid Jan. HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. Due 14 Jan. VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange. Due by Early Feb.
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As expected, the COVID-19 pandemic caused significant declines in out-of-home consumption, which were partly offset by gains in at-home consumption and market share gains. Full year revenue declined 6.8% on a constant currency basis, while adjusted EBIT was down 21.9% at constant currency, and adjusted EPS was down 27.8%. A full year dividend of 21.6p was confirmed, following the decision in H1 to prudently suspend the dividend. Management focused on cash and cost efficiency to mitigate the impact of the pandemic as much as possible. During the period, the company extended its carbonates relationship with Pepsi to 2040. The outlook is understandably cautious, given the uncertainty in terms of further restrictions in Britvic’s main markets. Nevertheless, management has carefully planned its approach, and the agility demonstrated so far should continue to help Britvic navigate the uncertain environment.
Companies: Britvic plc
Nichol’s YE update is in line with guidance given in November at the time of the 9-month update. This is reassuring and a positive outcome given tier restrictions created additional challenges during the critical month of December. Overall, sales are reported to be down 19.3% to £118.7m vs our £119.4m, with OoH the principal drag. This should not overshadow another excellent year for UK Vimto packaged and further international progress. Pleasingly the company generated £6.4m of cash in the period resulting in net-cash of £47.3m (119p per share). Going into 2021, we are encouraged by management being on the front-foot re NPD/marketing and Middle-East Ramadan orders being in line. And whilst lockdown 3.0 is clearly unhelpful, Q1 is traditionally the quietest quarter. Overall, notwithstanding near-term CV19 uncertainty we expect the core Vimto business to further outperform and international sales to move ahead. For OoH the year is one of transition as management look to reset future direction given the mid-long term implications on end markets from CV19. Fundamentally, Nichols is a winner with significant growth runway, excellent cash generation credentials and a strong balance sheet which affords it optionality.
Companies: Nichols plc
A brief year-end trading update with not a huge amount of details. The main point is that post the July 2019 profit warning, the PBT performance through a combination of mix and cost savings has come in towards top-end of market expectations, implying c18% y/y decline. So a c3% beat vs our £36.5m. Revenue decline at -9% however was worse than our -7%. This reflects ongoing challenges with the Rubicon and Rockstar barns and lower Irn-Bru volume due to price realignment. Net, the company had a better H2 than H1 and from our understanding, exits Q4 with good momentum. Looking ahead to 2020, the comps are easier and the company is expected to get back into growth mode (albeit 3% at the PBT level). The main cloud on the horizon is the Deposit Return Scheme for Scotland, and we understand the Scottish Parliament will provide an update on plans in the next few weeks. We view this as short-term negative for AG Barr and hence have a y/y profit decline for FY22. Post today’s update we nudge our current year PBT up by 2% and FY21 by 2% also. There will be some investor relief this morning but given the anaemic growth outlook and ongoing headwinds we feel an FY21 P/E looks full. We stay at Hold.
Companies: A.G. BARR p.l.c.
Upon Admission to AIM, Nightcap will acquire The London Cocktail Club Limited (the "London Cocktail Club"), which is an award winning independent operator of ten individually themed cocktail bars in nine London locations and one location in Bristol. Offer TBC. HSS Hire Group, HSS.L transfer from Main to Aim. Mkt Cap c. £70m. Recently raised £52.6m. Leading supplier of tool and equipment for hire in the United Kingdom and Ireland and has provided equipment hire services in the United Kingdom for more than 60 years, primarily focusing on the B2B market. VH Global Sustainable Energy Opportunities plc, a closed-ended investment Company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Main Market of the London Stock Exchange.
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A G Barr’s (BAG LN, HOLD, T/P 600p) FY2018 half-year results broadly matched expectations at revenue and profit level. Net revenue was £137m, i.e. very similar to the £136m reported in the 2nd August 2017 trading statement. They represented an 8.8% increase from the previous year. The latest IRI data (18th June) showed category value and volume increases of 3.5% and 2.1% respectively.
Ongoing labour cost challenges, higher input costs, sustained brisk organic sales volume growth and further room for innovation at both product and distribution level were the key investment features of the 2018 British Sandwich & Food to Go Association AGM and Conference, which was held in London yesterday. Moreover, the association had strong messages on food waste reduction and CSR, both of which are important as the industry body continues to lobby the UK government hard ahead of Brexit. The chief UK listed plays on Food to Go are Greencore (GNC LN, BUY, 310p), Cranswick (CWK LN, HOLD, T/P 2700p) and potentially Produce Investments (PIL LN, BUY, T/P 240p). Our overall industry stance remains positive.
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AG Barr has navigated a tricky H1 (sugar levy, snow, CO2 shortages and upside from hot weather) to deliver a satisfactory set of financials - sales up 5.5% which flowed through to a modest 4% uplift in PBT. The DPS has been nudged up by 5%. So a steady as it goes performance with no meaningful new news or surprise this morning, albeit we note that in revenue terms the company underperformed market growth of 7.7%. Management is guiding to no change to full year expectations this morning. Given low single digit growth expectations the valuation we feel looks full, with share buybacks being the main support over the last few months.
Britvic’s Q1 trading was in line with expectations, with organic constant currency revenue growth of 1.5% excluding the soft drinks levies, and reported revenue growth of 4.5%. With five-year EPS CAGR of 9.8%, DPS CAGR of 8.9% (to September 2018) and debt within the target range, this is a textbook consumer staples company. During FY19, the business capability programme is due to be completed, bringing higher capacity and increased flexibility to the company. Trading at 10.1x consensus FY19e EV/EBITDA, the shares offer interesting value.
Britvic has delivered another strong performance in H1, with organic constant currency revenue growth of 1.9%, organic adjusted EBIT margin up 30bps and adjusted EPS up 5.2%. The business capability programme (BCP) is due to be completed during H219, bringing higher capacity and increased flexibility to the company. Looking ahead, as capex and leverage normalise to lower levels, and planned returns and further growth from the BCP programme come to fruition, the wide discount to peers may narrow.
Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.
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In FY19 Britvic delivered a strong performance showing good momentum in its core business. The GB business had both Britvic and PepsiCo brands showing revenue growth, Brazil continues to grow and problems in France are being addressed with a proposed exit from private-label juice. The Business Capability Programme (BCP) is complete, and cost savings delivered ahead of schedule. The outlook is somewhat cautious as the consumer environment remains tough, and changes in France will take a while to fully implement. Notwithstanding this, management expects to make further progress in FY20.
Britvic’s Q1 trading was in line with management expectations, indicating a good start to the year. The company acknowledges that market conditions ‘remain challenging’, but it is confident of achieving market expectations for the year. Q1 revenue was £369.8m, up 4.9% vs the prior year. This includes a benefit from extra trading days. On a comparable days and constant FX basis, revenues were up 2.6%.
Britvic has issued an update on the impact of the coronavirus. Prior to recent developments, trading was broadly in line with expectations. The recently announced government-mandated measures, however, will significantly affect consumption in outlet and on-the-go. The company has undertaken extensive modelling. Assuming the current conditions persist across its key markets, management’s best estimate is that the impact on the group is a reduction in EBITA of £12–18m per calendar month. Britvic also updated on its financial position, with headroom available versus its lending covenants.
FY20 started well, with value share gains in GB, Ireland and Brazil. As expected, lockdown has affected out-of-home and on-the-go consumption in particular. Conversely, sales of at-home consumption packs have increased significantly, thus leading to an adverse mix effect. GB and Ireland have been the most affected markets for Britvic, as they have a greater exposure to the out-of-home channel. The company is maintaining its guidance of a likely monthly impact from the COVID-19 pandemic of £12–18m adjusted EBIT, although its scenarios seem very conservative.