Consolidated financial statements

The group is also committed to electrifying its vehicle fleet. 15% of newly commissioned leased cars will be fully electric cars (and 3 hybrid cars) by 2022.

EUR 13.7 million was invested in the Savoury SBU in 2022. Concerns mainly investments in new cooling systems (master cooling plan) to meet the new ecological and legal requirements and reduce our carbon footprint, adjustments to the infrastructure in Veurne and Wommelgem and a new packaging line in Aalsmeer...

In the Ready Meals SBU, EUR 8.8 million was invested in 2022. These include investment in the new “topseal” line at the factory in Poland (a sustainable method of packaging due to the high reduction in plastic) , the implementation of a new method of gratins at our site in France, and replacement investments as well as sustainability projects at the 2 Belgian production sites.

17. Equity method participations

On 1 june, 2022, the Group became a 50% owner of start-up Davai BV. Davai makes plant-based dumpling snacks under the brand “Davai” and currently sells them in Belgium and the Netherlands. Davai also realized an initial retail listing in the first half of 2022.

18. Deferred tax assets and liabilities

The deferred tax assets and liabilities are attributable to the following categories:

In 2022, the group did not recognize EUR 10,949 thousand deferred tax assets on tax loss carryforwards (2021: EUR 9,987 thousand). The group is not sufficiently certain that these will be realized soon. The tax loss carry forward amounts are indefinitely transferable over time.

From 2019, a deferred tax benefit was expressed in relation to Poland for EUR 5 million because Pasta Food Company is located in a reconversion zone. From 2020, a portion of the expressed tax benefit will be reversed annually because Pasta Food Company 2020 closed its fiscal year with a profit. The unexpressed tax benefit is still 2.9 million at the end of 2022 because we are not sure we can realize it. This benefit is limited in time, to 2026.

19. Other long-term receivables

The percentage of trade receivables already due for more than 60 days was 0.1% in 2022 and 0.2% in 2021 (see also Note 25).

To cope with future inflation (deflation) of costs, most new contracts were concluded for a limited time period or contain an automatic indexation for the cost of the main commodities.

22. Cash and cash equivalents

For write-downs on inventories, we refer to note 8.

Inventories are, as expected, higher than last year. They increased by 21.49% to EUR 46.9 million mainly as a result of sharply higher inflation but also as a result of a strategic decision to build larger buffer stocks where possible, given the still reduced rigidity of the supply chain.

21. Trade and other receivables

Cash is held at reputable banks. Cash investments relate to an overnight deposit at a reputable bank.

23. Shareholders’ equity

Dividends

The General Shareholders Meeting of May 25, 2022 approved the Board of Directors’ proposal of a scrip dividend (gross EUR 4.00/share). The shareholders of the group opted for the contribution of their dividend rights in exchange for new shares instead of the payment in cash for 52.26% of their shares entitled to a dividend.

This results for Ter Beke in a strengthening of the equity of EUR 2,625,322 (capital and share premium) through the creation of 26,789 new shares. As a result, the total number of Ter Beke shares as of July 1st 2022 is: 1,821,006. The creation of new shares will also increase the denominator in the calculation of earnings per share for the entire financial year. The remaining dividends were paid out in cash on July 4, 2022. Including total withholding tax, this represents a total cash distribution of EUR 4,551,546. This capital increase reduces the debt ratio by approximately 0.7% compared to a 100% cash dividend payment.

Our trade receivables are non-interest bearing.

The average number of days of customer credit for the group is 46 days (2021: 45 days).

In 2022, we recognized EUR 130 thousand of write-downs on trade receivables as expense in the income statement (EUR 113 thousand in 2021).

The scrip dividend avoids (in proportion to the contribution of dividend rights to Ter Beke’s capital) a cash-out to the company.