CAMPOSOL
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
Key Figures of Camposol Holding Plc and Subsidiaries (“CAMPOSOL” or the “Company”)
Gross profit
Avocado 2,626 321 70,111 19,674
Blueberry 45,053 38,380 57,801 61,417
Shrimp 3,480 2,080 12,071 6,389
Other continued operations (3,814) 1,623 (361) 7,604
47,345 42,404 139,622 95,084
Loss / Profit before income tax *** 41,522 29,636 87,199 10,659
Adjusted EBITDA****
From continued operations 45,768 36,196 125,450 76,046
From discontinued operations - (261) (999) (3,556)
Adjusted EBITDA TOTAL 45,768 35,935 124,451 72,490
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
average cost of USD 4.63 (3.54) per net KG. Seafood
This represents an increase of 24.9% in CAMPOSOL sold 11,733 (8,876) net MTs of
volume sold, a decrease of 3.2% in price and shrimp and other seafood products during
an increase of 30.6% in cost. Increase in 2017, at an average price of USD 7.04 (7.91)
unitary costs mainly by an increase in labor per net KG. This represents an increase of
costs related with the new planted hectares 32.2% in volume sold and a decrease of
and the impact of the profit sharing scheme 11.0% in price compared to 2016. During
due to the higher profitability of Camposol 2017, the Company decided to change the
vis a vis the consumption of its tax credit product mix favoring the whole format
during 2016. (Head On Shell On – HOSO) instead tail only
format. This decision led to an improvement
During 2017, total gross margin for of the overall profitability of the segment.
blueberries was 47.7%, down 13.5 pp
(percentage points) compared to 2016. During 2017 total gross margin for seafood
was 14.6%, up 5.5 pp (percentage points)
compared to 2016.
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
Investment Program
During 2017, the Company made investment commitments amounting to USD 63.0 million, and
had net disbursements of USD 52.2 million, of which USD 20.3 million were invested in
blueberries, USD 13.6 million on the conversion of intensive shrimp ponds, USD 4.8 million in
tangerine, USD 4.8 in machinery, plant and equipment, USD 4.2 million in grape, USD 2.9 million
in avocados and USD 1.1 million in technological and administrative improvements, among
other.
Marinasol
Semi-intensive Ponds Intensive Ponds Total
(Ha) (Ha) (Ha)
1,155 75 1,229
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
Market Outlook
The long term growth prospects for exotic The Company is currently focused on adding
fruits and vegetables markets remain value to its clients through commercial,
favorable. Avocados, blueberries, and marketing and service initiatives in order to
tangerines per capita consumption in the strengthened is value proposition.
US2 continue to show solid growth.
Additionally, CAMPOSOL is analyzing new
The Company expects good demand for all opportunities to consolidate its leadership
fresh produce in general, and for avocados through additional planting of current
and blueberries specifically in the United products, strategic alliances and
States, Europe and China. acquisitions.
The Company expects to continue its CAMPOSOL will continue positioning itself
diversification strategy by mainly increasing in the fresh and frozen segments in which it
the production capacity of blueberries, has made significant investments in recent
avocados and shrimp. years, and thus seek to maximize
opportunities for growth and consolidate its
business.
Subsequent events
Camposol launched and 10.50% Senior Secured Notes due 2021. The
Tender Offer and Consent Solicitation were
terminated a Tender Offer subject to the conditions set forth in the
and Consent Solicitation for Offer to Purchase and Consent Solicitation
Statement, within which a Financing
Any and All of its outstanding Condition was defined, which included the
10.50% Senior Secured Notes pricing of a New Offering on terms
satisfactory to Camposol. On February 12th,
due 2021. 2018 the Tender Offer and Consent
Solicitation were terminated because the
On January 30th, 2018 Camposol announced New Offering has been postponed due to
a Tender Offer and Consent Solicitation for extremely volatile market conditions.
Any and All of Camposol’s outstanding
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
Financial Tables
CAMPOSOL HOLDING PLC AND
SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION USD (000)
AS OF DECEMBER 31st, 2017
For the period ended
31.12.17* 31.12.16**
Assets Notes
Non-current assets
Property, plant and equipment, net 7 376,366 370,755
Investments in associated companies 2,054 2,764
Intangibles 10 4,907 3,694
Deferred income tax 420 2,625
383,747 379,838
Current assets
Assets held for sale - 2,334
Prepaid expenses 806 988
Current portion of biological assets 94,113 68,063
Inventories 9 37,340 32,568
Other accounts receivable 8 14,191 16,030
Trade accounts receivable 49,123 42,799
Cash subject to restriction 1,285 -
Cash and cash equivalents 34,271 84,700
231,129 247,482
Total assets 614,876 627,320
Equity and liabilities
Capital and reserve attributable to
shareholders of the Company
Share capital 388 513
Share premium 217,312 217,312
Other reserves 825 825
Retained earnings 88,636 33,980
307,161 252,630
Minority interests 7,285 7,468
Total equity 314,446 260,098
Non-current liabilities
Long-term debt 149,934 155,430
Deferred income tax 45,985 46,255
Other payables 8,574 8,180
204,493 209,865
Current liabilities
Current portion of long-term debt 12,407 62,761
Trade payables 39,397 37,698
Other payables 24,869 16,048
Bank loans 19,264 40,850
95,937 157,357
Total liabilities 300,430 367,222
Total equity and liabilities 614,876 627,320
* Non audited
** Audited
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
Equity
attributable to Non-
Share Share Other Retained shareholders of controlling Total
capital premium reserves earnings the parent interests equity
USD 000 USD 000 USD 000 USD 000 USD 000 USD 000 USD 000
Balance as of 1 January 2017 513 217,312 825 33,980 252,630 7,468 260,098 **
Increase of capital - - - - - - -
CTA - - - 450 450 (174) 276
Adjustment - - - - - - -
Net result - - - 74,206 74,206 (9) 74,197
Dividends distribution - - - (20,000) (20,000) - (20,000)
Depreciation of revalued assets - - - - - - -
Result of non-controlling interest - - - - - - -
Other Comprehensive Income (125) - - - (125) - (125)
Balance as of 31 December 2017 388 217,312 825 88,636 307,161 7,285 314,446 *
(125) - - 54,656 54,531 (183)
* Non audited
** Audited
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
Net (decrease) increase in cash and cash equivalents during the period (50,429) 58,053
Cash and cash equivalents at beginning of period 84,700 26,647
Cash and cash equivalents at end of period 34,271 84,700
* Non-audited
** Audited
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
* Non-audited
** Audited
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
1. Basis of preparation
This condensed consolidated financial information for the full year ended December 31st, 2017
should be read in conjunction with the annual financial statements for the year ended December
31st, 2016 which have been prepared in accordance with IFRS.
The consolidated financial statements have been prepared on historical cost basis, except for
biological assets which have been measured at fair value.
The financial statements are presented in United States dollars (USD) and all monetary amounts
are rounded to the nearest thousand (USD ’000) except when otherwise indicated. The financial
statements do not include all the information and disclosures required in the annual financial
statements, and should be read in conjunction with the financial statements as of December
31st, 2016.
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
3. Segment information
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
4. Administrative expenses
Administrative expenses increased from USD 26.6 million in 2016 to USD 32.8 million in 2017.
The increase of USD 6.1 million is mainly explained by the increase of personal expenses related
to a profit sharing provision.
Fixed selling expenses decreased from USD 8.2 million in of 2016 to USD 8.1 million in 2017. This
decrease is mainly explained by lower insurance cost during the period.
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
Total other expense, net of other income decreased from USD 13.3 million in 2016 to USD 1.6
million in 2017.
Other income in 2017 is mainly explained by USD 0.8 million for insurance proceeds.
Other expenses in 2017 is mainly explained by USD 1.6 million assets disposal, USD 0.5 million
for legal claims from previous years.
Additions are composed of part of the equipment investment program, infrastructure and land
to improve production facility and fields. The adjustments are principally the net cost of fixed
assets from IAS-41.
As of, 31.12.2017
USD 000
Opening net book amount as of January 1, 207 188,433
(+) Additions 31,471
(-) Write -off (327)
(-) Depreciation (12,582)
(-) Transfers (9,871)
(+/-
Exchange difference 5,640
)
Property Plant and equipment 202,764
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
Other accounts receivable decreased from USD 16.0 million at December 31, 2016, to USD 14.2
million at December 31st, 2017. This decrease corresponds principally to a collection of Income
Tax credit.
9. Inventories
Total inventories increased from USD 32.6 million at December 31st, 2016 to USD 37.3 million at
December 31st, 2017. The increase of USD 4.8 million is mainly explained by the increase of
supplies, raw material and product in process, net of a decrease on packaging supplies.
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
The main transactions carried out between the Group and related companies are as follows:
As of
31.12.2017 31.12.2016
USD 000 USD 000
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
12. Seasonality
Company production is subject to seasonal fluctuations, with peak production in the third to
fourth quarter of the year. This is due to seasonal weather conditions which affect production.
In the discussion of operating results, CAMPOSOL refers to certain non-GAAP financial measures
such as EBITDA. CAMPOSOL’s management makes regular use of these measures to evaluate
the performance, both in absolute terms and comparatively from period to period. EBITDA,
which CAMPOSOL defines as sales minus cost of goods sold, administrative and selling expenses
plus depreciation, amortization and amortization without IAS-41, is an approximation of cash
flow from continuing operating activities before tax and net operating capital changes.
Amortization without IAS-41 is the cost assigned to cost of goods sold that under an accounting
without IAS-41 would be considered amortization.
CAMPOSOL’s definition of EBITDA may differ from that of other companies. EBITDA should not
be considered as an alternative to operating income and income before tax as an indicator of
the Company’s operations in accordance with IFRS. Nor is EBITDA an alternative to cash flow
from operating activities in accordance with IFRS. A reconciliation of EBITDA to total profit
before income tax is provided as follows:
31.12.2017 31.12.2016
USD 000 USD 000
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CAMPOSOL Holding Plc Fourth Quarter and Preliminary Full Year 2017 Report
About CAMPOSOL
CAMPOSOL is a vertically integrated producer of branded fresh and healthy food that offers high quality,
healthy and fresh food to consumers around the world, based on a sustainable management model.
CAMPOSOL is organized into two main business units: Camposol Fruits and Vegetables (fresh produce)
and Marinasol (aquaculture) and its portfolio includes superfoods like blueberries, avocados, shrimp,
mandarins, among others. Additionally, our international commercial platform is responsible for the
commercialization of the products of these two units, with offices in the US, The Netherlands and China.
CAMPOSOL guarantees the full traceability of its products and is committed to supporting sustainable
development through social and environmental responsibility policies and projects intended to increase
the shared-value for all its stakeholders. On the strength of this value proposition, CAMPOSOL’s
commercial offices have established long-term relationships with the top worldwide supermarket chains
and service them directly.
CAMPOSOL is also an active member of the Global Compact since 2008. It presents annual Sustainability
Reports aligned to the GRI Methodology and has achieved the following international certifications: BSCI,
Global Gap, IFS, HACCP and BRC among others.
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