4

Results

Financial results

Profit and loss

2023 was a solid year for Numidia, both in terms of volume and result.

  • Full-year sales volume grew by 16% year-on-year (YoY) to a total of 351,419 metric tons. Despite the significant increase in volume, Numidia's turnover was slightly lower than in 2022. This can be attributed to a decrease in dairy prices in 2023 following extremely high prices in 2022.

  • Numidia has strategically focused growth regions, which resulted in higher turnover in Europe and Asia and lower turnover in Africa.

  • The turnover by main product groups was: powders 62% (74% in 2022), fat 18% (13% in 2022), cheese 18% (11% in 2022) and liquids 1% (2% in 2022).

  • Derivative volumes continued the double digit growth rate into 2023. The relative share in the total Numidia volume has thereby further increased.

In 2023, we continued to build a strong foundation for growth, as demonstrated by the increased number of employees.

The above graph shows the number of employees at year-end. It includes: interns, seasonal workers and statutory directors. Agents, independent sales representatives and VCC employees are excluded. The average number of FTEs employed is reported in the notes to the consolidated profit and loss account.

The net result was EUR 16 million (1.8% of the turnover), in line with Numidia's budget. Both physical sales and commodity derivative trading contributed significantly to the result.

Balance sheet

We accomplished our priority for 2023 to achieve profitability while controlling our working capital and improving our solvability:

  • Working capital slightly increased from December 2022 to December 2023, as the product mix shifted toward cheese and fat products.

  • Due to price increases in the last months of 2023, a higher inventory level was maintained.

  • During 2023, the tangible net worth (TNW) increased by EUR 6 million to EUR 57 million. The TNW has been calculated in line with the bank covenants.

  • The current ratio ultimo 2023 is 1.27 (1.26 ultimo 2022).

  • Numidia made an additional investment in the joint venture Vonk Culinary Cheese (VCC), which enables VCC to increase production volumes.

Cash flows

The 2023 cash flow from business operations was EUR 21.4 million. This cash flow was used to invest in financial fixed assets, finance working capital and pay dividends in the amount of EUR 10 million.

Financing and related requirements

The operations of Numidia are largely financed through an asset-based credit facility. In 2023, Rabobank joined the syndicate with Deutsche Bank and ING Bank. The total credit line amounts to EUR 180 million, of which EUR 30 million is conditional. On 31 December 2023, a total of EUR 71.1 million was utilized and all related bank covenants were met.

Community stewardship

In 2023, Numidia spent 1.7% of its net income on community stewardship, encompassing donations to the Numidia Charity Foundation, sponsorships and green certificates.

Outlook for 2024

In 2023, we continued to build a strong foundation for growth, as demonstrated by the increased number of FTEs employed by Numidia and the preparations for the expansion of our headquarters in Herten. We are prepared to take the next steps in our expansion in 2024. Over the course of 2023, we relocated to larger offices in Uruguay and Singapore to facilitate the growth of our teams there.

Our strategic pillars form the basis of our 2024 ambitions and budget:

The Numidians:

  • Budget for employee learning and development

  • Being the employer of choice in our industry and region

Most Sustainable:

  • Extending our leading position in sustainability within the dairy trade. Having achieved an EcoVadis Silver medal in 2021 and a Gold medal in 2022 and 2023, we strive for a Platinum medal in 2024.

Market Leadership:

  • Overall volume growth with extra focus on strategic regions and products (both in physical products and derivatives)

  • Positive cash flow from business operations

Most Innovative:

  • Further investments in IT, automation, and market and business intelligence are budgeted

Beste experience:

  • Intensify customer and supplier engagement by continuously measuring satisfaction and using feedback to initiate improvement actions

Best products:

  • Further grow our market share in high-protein products and through risk management solutions

We are confident that we have all the conditions in place to achieve our ambitions:

  • A best-in-class workforce

  • A very solid balance sheet and solvability

  • A three-bank credit facility, providing sufficient room for growth

  • A strong presence in the global physical and derivatives dairy markets

  • A diversified customer and supplier base

  • A diversified and broad product range

  • The most advanced sustainability structure

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