The financial year ending 30 June 2022 was marked by unprecedented price inflation in the agricultural commodities market; a direct consequence of international geopolitical strife and the Russia/Ukraine conflict. Prices of most grain rose to exceptionally high levels (with MATIF quoting wheat at €438 per tonne on 17 May 2022). This trend also impacted the price of inputs, such as nitrogen-based fertilisers, where the price correlates directly to that of the gas needed to produce it.

 

Across the Cooperative region, grain collection in 2021 was up 7% on the previous year at 3.09 million tonnes. Barley, wheat and maize were up by 10%, 7% and 70% respectively, while rapeseed fell by 42%. The weather conditions during the harvest were exceptionally challenging and particularly difficult for both farmers and Cooperative teams, and added a new level of mechanical complexity to grain collection, processing and transport. Activity began late and continued through the summer and autumn.

 

Cooperative annual revenue totalled €1,229 million, reflecting an increase of 23% on the previous financial year, largely as a result of the rise in grain and oil-seed crop prices.

 

As a direct result of the turbulence and high volatility in agricultural production prices, the management framework was tightened and rigorously monitored. Cooperative financial performance, as measured by EBITDA, totalled €19.3 million for 2021/2022, compared with €19.1 million for the previous financial year. Operating costs rose as a result of significant inflationary pressure on energy prices and higher salary costs, combined with the knock-on effects of the summer and autumn harvest conditions on logistics.

 

On-farm storage, one of the cornerstones of the Cooperative logistics and supply chain strategy, remained stable to include more than one-third of all grain collected in 2021. A total of €7.7 million (exc. BMI) in storage premiums was paid to 3,671 cooperative farmers. Financial income for the year was up by €2.3 million to 0.6 million.

 

The €29.6 million in exceptional income resulted chiefly from the partial reversal of provisions relating to the valuation of shares in VIVESCIA Industries, whose financial position, despite disruptions in the economy, has strengthened across its markets, but also from the favourable settlement of a dispute over IT services. Performance at agricultural subsidiaries Compas (wine growing) and Sepac-Compagri (trading) also bounced back strongly against a background of challenging market conditions.

 

The financial structure of the Cooperative remains strong, with shareholder equity of more than €365 million and net debt of €69.7 million at 30 June; a figure that reflects an increase over the previous year as a result of grain and fertiliser stock levels and the upward trend in prices.

 

The 2021/2022 financial year was characterised by a level of financial performance that remains satisfactory given the conflated effects of price hyperinflation and the Russia/Ukraine conflict. The effects of the Covid-19 pandemic continued around the world, although the impact on business was greater in Asia as a result of repeated lockdowns, particularly in China, although these effects were more moderate for the Group as a whole.

 

The Cooperative and its agricultural subsidiaries were directly impacted by soaring grain, fertiliser and energy prices, and the high levels of rainfall experienced during the summer 2021 harvest. Work continued on the implementation of all major transformation plans - particularly ‘My Coop 2025 - with the initial results coming through during the year. The financial performance of the Cooperative remained stable, with an increasing contribution being made by its agricultural subsidiaries.

 

After a year of recovery for VIVESCIA Industries in 2020/2021, its processing entities continued to deliver growth during the financial year, particularly those in the Milling/Frozen Bakery-Viennoiserie-Patisserie (BVP) sectors. Against a background of unprecedentedly high inflation, dynamic operational and sales management - in combination with price increases for customers - have partially offset the effects of price increases for purchases across the board.

 

At €3.8 billion, Group consolidated revenue was up 22.4% year-on-year as a result of positive trends across the majority of our businesses and price increases. The EBITDA figure of €150 million was 9.5% higher than in the previous financial year.

 

Tight financial discipline was maintained across our businesses throughout the year. At €637.8 million, net debt is fully under control. All banking ratios remain on target.