Notes to the consolidated profit and loss account
11. Gross turnover
The breakdown of gross turnover by sales category is as follows:
| Amounts x € 1.000 | 2023/2024 | 2022/2023 |
|---|---|---|
| Starch | 205.662 | 244.837 |
| Modified starch | 532.200 | 510.058 |
| By-products | 84.955 | 100.271 |
| 822.817 | 855.166 |
| 2023/2024 | 2022/2023 | |
|---|---|---|
| European Union | 47% | 46% |
| Rest of Europe | 6% | 6% |
| Rest of the world | 47% | 48% |
| 100% | 100% |
12. Other operating income
The other operating income consists of the following:
| Amounts x € 1.000 | 2023/2024 | 2022/2023 |
|---|---|---|
| Commissions, royalties and other | 3.182 | 2.749 |
| Result sale of fixed assets | 688 | - |
| 3.870 | 2.749 |
The commissions, royalties and other consists largely of a one-of payment.
13. Subcontracted work and other external costs
The most important costs included under subcontracted work and other external costs relate to maintenance, third-party services, storage and transport, IT licenses, hired personnel and insurance.
Audit fees
| Amounts x € 1.000 | 2023/2024 | 2022/2023 | ||
|---|---|---|---|---|
| KPMG Accountants N.V. | Other KPMG-network | KPMG Accountants N.V. | Other KPMG-network | |
| Audit of the financial statements | 344 | 62 | 322 | 58 |
| Other audit services | - | 9 | - | - |
| Tax services | - | 41 | - | 32 |
| Other non-audit services | - | 5 | - | 10 |
| 344 | 117 | 322 | 100 | |
| Total | 461 | 422 | ||
The fees listed above relate to the procedures applied to Royal Avebe and its consolidated group entities by accounting firms and external auditors as referred to in Section 1, subsection 1 of the Audit Firms Supervision Act (‘Wet toezicht accountantsorganisaties - Wta’) as well as by Dutch and foreign-based accounting firms, including their tax services and advisory groups. These fees relate to the audit of the 2023/2024 financial statements, regardless of whether the work was performed during the financial year.
14. Salaries
The number of employees who employed during the financial year was on average 1,285 (previous year: 1,318). Of this total, 285 (previous year: 297) work outside the Netherlands. Social security contributions and pension costs include EUR 13,661 (previous year: EUR 13,809) in pension costs. The average number of employees can be divided as follows based on the organization within Royal Avebe.
| 2023/2024 | 2022/2023 | |
|---|---|---|
| Operations | 895 | 938 |
| Commerce | 108 | 119 |
| Group | 282 | 261 |
| 1.285 | 1.318 |
15. Depreciation and impairment of assets
Depreciation and impairment of assets consist of the following components:
| Amounts x € 1.000 | 2023/2024 | 2022/2023 |
|---|---|---|
| Depreciation tangible fixed assets | 41.140 | 41.254 |
| Impairment on tangible fixed assets | 1.713 | 1.245 |
| Depreciation intangible fixed assets | 4 | 5 |
| 42.857 | 42.504 | |
| Book result on divestment of assets | - | 437 |
| 42.857 | 42.941 |
16. Result of participation
The result of participation consist of the following components:
| Amounts x € 1.000 | 2023/2024 | 2022/2023 |
|---|---|---|
| Positive result from sale of participation | -3.391 | - |
| Legal reserve for translation differences | 17.102 | - |
| Total result of participation | 13.711 | - |
On September 28, 2023, the shares of Avebe Nisasta Sanayii ve Ticaret Limited Sirketi were sold to Brenntag Specialities. The net sales result of the sale of all shares in Avebe Nisasta Sanayii ve Ticaret Limited Sirketi is accounted for under the result of participation. Due to the sale of the interest in Avebe Nisasta Sanayii ve Ticaret Limited Sirketi, the associated part of the legal reserve for translation differences is accounted for in the profit and loss account.
17. Income tax expense
The corporate income tax of EUR 3.8 million (previous year: EUR 5.3 million) charged to the result is the balance of settlements within the fiscal unit and the processing thereof via the valued carry-forward losses as well as the calculated corporate income tax of the foreign subsidiaries. The losses still to be settled amount to EUR 9.3 million as of 31 July 2024 (previous year: EUR 16.3 million) and are valued at the applicable corporate income tax rate of 25.8%. The temporary differences between financial statements (commercial) and tax returns (fiscal) of EUR 10.3 million are valued at the same applicable rate. The remaining temporary differences of EUR 23.7 million (previous year: EUR 30.1 million) have not been valued due to uncertainty regarding future settlement options. Compared to the applicable tax rate, the 2023/2024 financial year results in a different effective tax rate of 59.1%, caused by tax deductions and the development of temporary differences.
The effective tax rate is 59.1%. The numerical connection between the applicable and the effective rate:
| 2023/2024 | 2022/2023 | |
|---|---|---|
| Applicable tax rate in the Netherlands | 25,8% | 25,8% |
| Tax effect of: | ||
| • Different applicable tax rates abroad | 31,3% | -8,6% |
| • Results under the Dutch participation exemption | -20,1% | -6,3% |
| • Non-deductible amounts/permanent differences | 24,6% | 4,4% |
| • Effect of change in valuation of losses, credits or temporary differences | 66,8% | 4,3% |
| • Utilisation of carry-forward losses from previous years | -37,7% | 4,5% |
| • Correction previous periods | -18,4% | -2,0% |
| • Other effects | -13,2% | -1,7% |
| Effective corporate tax rate | 59,1% | 20,4% |
The Pillar 2 income taxes apply to Royal Avebe from financial year 2024/2025. The cooperative has assessed the expected impact of the Pillar 2 income taxes for the group and notes that this has no impact on the financial statements. The effective tax burden is higher than 15% and the cooperative does not file Pillar 2 income taxes on behalf of other group companies. Nor are Pillar 2 income taxes charged to the cooperative.
