Notes to the consolidated balance sheet as at 31 July 2025
1. Intangible fixed assets
A summary of the movements of intangible fixed assets is given below:
| Amounts x € 1.000 | Software licenses |
|---|---|
| Acquisition costs | 4.374 |
| Cumulative depreciation and impairments | -4.370 |
| Balance as at 31 July 2024 | 4 |
| Investments | - |
| Depreciation | -4 |
| Balance as at 31 July 2025 | - |
| Acquisition costs | 4.374 |
| Cumulative depreciation and impairments | -4.374 |
| Balance as at 31 July 2025 | - |
| Depreciation period | 5 years |
2. Tangible fixed assets
The movements in the tangible fixed assets are as follows:
| Amounts x € 1.000 | Land and buildings | Plant and machinery | Other fixed assets | Assets under construction | Total |
|---|---|---|---|---|---|
| Acquisition costs | 116.492 | 834.413 | 72.866 | 42.744 | 1.066.515 |
| Cumulative depreciation and impairments | -79.412 | -657.220 | -63.223 | -1.006 | -800.861 |
| Balance as at 31 July 2024 | 37.080 | 177.193 | 9.643 | 41.738 | 265.654 |
| Investments | 497 | 6.723 | 890 | 51.855 | 59.965 |
| Commissioning of assets under construction | 1.059 | 31.028 | 2.445 | -34.532 | - |
| Exchange rate differences | 55 | 183 | -18 | 80 | 300 |
| Depreciation | -2.267 | -37.303 | -3.752 | - | -43.322 |
| Impairment | - | -482 | - | -1.043 | -1.525 |
| Reversal of impairment losses | 662 | 1.467 | 866 | 407 | 3.402 |
| Book value of disposals | - | - | - | -64 | -64 |
| Balance as at 31 July 2025 | 37.086 | 178.809 | 10.074 | 58.441 | 284.410 |
| Acquisition costs | 118.203 | 872.020 | 76.083 | 60.084 | 1.126.390 |
| Cumulative depreciation and impairments | -81.117 | -693.211 | -66.009 | -1.643 | -841.980 |
| Balance as at 31 July 2025 | 37.086 | 178.809 | 10.074 | 58.441 | 284.410 |
| Depreciation period | 0-25 years | 10 years | 3-10 years | n/a |
Based on developments in the potato starch market, part of Avebe's assets have been written down to their recoverable amount in this financial year or in previous years. In the financial year, a previously recognized permanent impairment on a production line was reversed. This reversal is based on a sustainable recovery of operational performance and market outlook. The reversal amounts to EUR 3.4 million and has been recognized in the income statement.
3. Financial fixed assets
A summary of the movements in the financial fixed assets is given below:
| Amounts x € 1.000 | Other participating interests | Other loans | Deferred tax assets | Total |
|---|---|---|---|---|
| Balance as at 31 July 2024 | 151 | 329 | 5.055 | 5.535 |
| Additions and supplies | - | 400 | - | 400 |
| Repayments and withdrawals | - | - | - | - |
| Acquisition of a participation | 22 | - | - | 22 |
| Movement credited/debited to the result | - | - | -35 | -35 |
| Balance as at 31 July 2025 | 173 | 729 | 5.020 | 5.922 |
The other loans relate to a loan granted to JoinData U.A. and a loan to ChainCraft Holding B.V. The term of the loan to JoinData U.A. is 9.5 years, with a remaining term of 1.5 years. Repayment takes place at the end of the term. The interest rate is 3.25%. The term and repayment of the loan to ChainCraft Holding B.V. depend on the outcome of the final investment decision regarding the development of the facility. The interest rate is 4% on a compound basis.
As of July 31, 2025, all carry-forward losses are valued at EUR 2.7 million (previous year: EUR 2.4 million) and deductible temporary differences are valued at EUR 2.3 million (previous year: EUR 2.7 million). It is expected that an amount of EUR 0 of this amount on the balance sheet date will be realised within one year.
4. Inventories
The inventories valued at a lower realisable value have a carrying amount of EUR 3.4 million on the balance sheet date (previous year: EUR 7.4 million). The total provision for inventories amounts to EUR 10.8 million (previous year: EUR 4.1 million). The provision relates to products that are made as a trial product, products that do not meet the prescribed product requirements or products that are provided with a product based on the age of the product.
The purchased emission rights included in the inventories have a carrying amount of EUR 7.8 million (previous year: EUR 6.3 million) on the balance sheet date.
5. Receivables
All receivables have a remaining term of less than one year.
A provision for bad debts of EUR 0.7 million has been deducted from trade debtors (previous year: EUR 0.6 million). This provision is determined on the basis of the collectability of the outstanding receivables. The fair value of the other receivables approximates the carrying amount due to their short-term nature.
6. Cash and cash equivalents
The cash and cash equivalents are at the free disposal of Avebe. Cash and cash equivalents consist of cash, bank balances and deposits with a term of less than twelve months. Current account debts with banks are included under debts to lending institutions under short-term debts. Cash and cash equivalents are valued at nominal value.
7. Shareholders' equity
The shareholders’ equity is detailed in the notes to the company financial statements.
The consolidated statement of total result is as follows:
| Amounts x € 1.000 | 2024/2025 | 2023/2024 |
|---|---|---|
| Cooperative result after taxes | 5.126 | 2.595 |
| Conversion diferences foreign group companies | -306 | 315 |
| Exchange rate result of hedging financial fixed assets | 259 | -129 |
| Other direct movements in equity | 2.034 | 6.423 |
| Total result | 7.113 | 9.204 |
8. Provisions
| Amounts x € 1.000 | Transition | Deferred tax liabilities |
Pensions | Onerous contracts |
Disposal costs |
Anniversary | Asbestos | Total |
|---|---|---|---|---|---|---|---|---|
| Balance as at 31 July 2024 | 3.303 | 812 | 1.446 | 2.861 | 9.737 | 4.997 | 2.018 | 25.174 |
| Addition | 2.471 | 84 | 7 | 685 | 3.281 | 636 | - | 7.164 |
| Withdrawals/releases | -1.866 | -125 | -36 | -2.861 | -1.292 | -689 | - | -6.869 |
| Exchange rate differences | - | 20 | -7 | - | - | - | - | 13 |
| Balance as at 31 July 2025 | 3.908 | 791 | 1.410 | 685 | 11.726 | 4.944 | 2.018 | 25.482 |
| Current part | 3.096 | - | - | 685 | 1.400 | 690 | 250 | 6.121 |
The provisions are long-term unless stated otherwise.
Pensions
Based on the administration agreement with the pension fund and the pension agreement with the employees, there are no additional obligations in the context of extra payment, back-service obligations, (extra) administration costs, additional pension entitlements, disadvantages of individual value transfers. There are no further promised refunds, interest, profit sharing and benefits from individual value transfers that benefit Avebe. Pension accrual takes place on the basis of the average salary system in which a capped premium is paid on the basis of Collective Defined Contribution. The coverage ratio of Stichting Pensioenfonds Avebe is 137.2% on December 31, 2024 (previous year: 131.7%). The policy funding ratio is 138.5% (previous year: 131.8%). The provisions for foreign companies concern a so-called reserve deficit and defined benefit plans. These concern obligations to be financed in the future. The amount involved is EUR 1.4 million (previous year: EUR 1.4 million).
Disposal costs
The provision for disposal costs concerns the expected expenses for the removal of waste streams at the Dutch Avebe locations. The estimate of this provision is based on applicable environmental regulations and a multi-year agreement with an external party for waste processing.
9. Current interest-bearing liabilities
| Amounts x € 1.000 | 31-07-2025 | 31-07-2024 |
|---|---|---|
| Debts to lending institutions | 310.050 | 317.658 |
In March 2025, Avebe entered into a refinancing agreement for its revolving credit facility with a consortium of six banks. The facility has a term of three years, with two one-year extension options. The credit facility consists of the following components:
- A committed facility of EUR 140 million (Term Loan), with annual repayments of EUR 7 million.
- A receivables and inventory-backed facility (Asset Based Loan) of a maximum of EUR 305 million, this facility is also committed.
- A guarantee facility of EUR 15 million.
- An accordion facility of EUR 40 million (minimum EUR 10 million per drawdown).
The following covenants have been agreed for this facility:
- Solvency must be at least 20% on January 31.
- Solvency must be at least 30% on July 31.
- The cooperative net result must be at least zero.
- The leverage ratio must be below the agreed threshold in the financing agreement as of July 31; for July 31, 2025, the threshold is 4.5.
Specific calculation rules have been agreed with the banks for the calculation of the ratios. As of the balance sheet date and throughout the financial year, Avebe complied with all covenant requirements; the cooperative result after tax amounts to EUR 5.1 million, solvency is 36.5%, and the leverage ratio is 4.05. Solvency and leverage ratio have been calculated based on the prescribed covenant definitions.
The interest payment in the financing contract is based on 1 month Euribor plus a margin of 1.2% to 1.7%. The variable interest rate has been partly converted into a fixed interest rate via interest rate swaps. Additionally, a discount of up to 0.05% may be granted by the lender if specific sustainability-related KPIs are achieved; if none of the KPIs are met, a 0.05% penalty applies. This arrangement is effective from the financial year 2025/2026.
10. Other debts
The other debts consist of the following components:
| Amounts x € 1.000 | 31-07-2025 | 31-07-2024 |
|---|---|---|
| Debt to members | 2.050 | 1.038 |
| Production-related debts | 1.455 | 992 |
| Personnel-related debts | 3.848 | 2.554 |
| Other | 14.383 | 11.946 |
| 21.736 | 16.530 |
The debt to members consists of the following components:
| Amounts x € 1.000 | 31-07-2025 | 31-07-2024 |
|---|---|---|
| Final payment to members | 2.050 | 1.038 |
| 2.050 | 1.038 |
The other debts and accruals and deferred income have a term of less than one year. EUR 0.5 million is of a long-term nature. The fair value of the other debts approaches the book value due to their short-term character.
Off-balance sheet commitments
Avebe has provided the following securities to the banks: right of mortgage on the property in the Netherlands and pledging of inventories and receivables in the Netherlands. These securities have been maintained.
The long-term commitments in connection with operational lease and rental agreements of mainly industrial buildings and warehouses amount to EUR 84.1 million, of which EUR 13.1 million matures within one year. An amount of EUR 41 million matures between one year and five years and an amount of EUR 30 million matures after more than five years.
Based on our cooperative model, there are purchase obligations for the purchase of potatoes. This concerns both delivery obligations and rights based on shares of our farmer members, but also contractual obligations with members and third parties. The size of these purchase obligations depends on the actual quantity and quality of the potato deliveries as well as the price to be determined for the upcoming campaign.
Guarantees have been issued up to an amount of EUR 1 million. Avebe has entered into commitments worth EUR 30.7 million in the context of current investments.
Until 1992, Avebe used bills of exchange to pay potato money. An amount of approximately NLG 1.3 million (EUR 0.6 million) in bills from this period has not yet been collected. These bills are still subject to interest commitments.
Fiscal unity
Avebe, with its 100% Dutch participations, forms a fiscal unity for corporate tax purposes. Under the standard terms and conditions, the company and its affiliated subsidiaries are each jointly and severally liable for taxes owed by the combination and for the processing of taxes within the fiscal unity. The parent company makes payments based on the tax results of the Dutch participations.
Financial instruments
| For the explanation of primary financial instruments, please refer to the specific explanation per financial statement line item. Below is the group's policy with regard to financial risks. The group's financial instruments and the associated financial risks are also explained. | ||||||
| General | ||||||
| The main financial risks to which the group is exposed to are currency risk, interest rate risk, credit risk and liquidity risk. The group's financial policy is aimed at mitigating the impact of currency and interest rate fluctuations on the result in the short term and at following market exchange rates and market interest rates in the long term. The group uses financial instruments to manage the financial risks associated with business activities. The group does not take speculative positions with financial instruments. | ||||||
| Translation hedging (currency risk) | ||||||
| Avebe hedges the currency risk on net investments in foreign group companies and loans provided by means of forward exchange contracts, where this is possible in view of the associated costs. Hedge accounting is applied for these forward currency contracts, with exchange rate differences being processed in the legal reserve for translation differences for the effective part of the hedge relationship. The ineffective part of the hedge relationship is accounted for directly in the profit and loss account. | ||||||
| Transaction hedging (currency risk) | ||||||
| Currency risks arising from purchases and sales are hedged depending on the expected period in which these purchases and sales will take place. Positions not included on the balance sheet are hedged using options and forward contracts. Avebe applies cost price hedge accounting for these derivative financial instruments. Hedge instruments are not revalued as long as the hedged position has not yet been included in the balance sheet. For options, the difference between the spot rate applicable at the time of concluding the financial instrument and the forward rate at which the financial instrument will be settled is capitalised and will be amortised over the term of the contract. The ineffective part of the hedge relationship is accounted for directly in the profit and loss account. Paid option premiums are capitalised under trade receivables and amortised over the term of the option contract. The depreciation costs of the option premium are recognised in the profit and loss account under gross turnover. Forward contracts are measured at the rate applicable on the balance sheet date. Realised gains or losses on derivative financial instruments used to hedge of-balance sheet positions are deferred until the time when the gains or losses on the hedged positions are recognised in the profit and loss account. | ||||||
| Interest risk | ||||||
| The interest rate policy aims to limit the risk of interest rate fluctuations. Avebe applies cost price hedge accounting for the financial instruments (interest rate swaps) that ensure that the interest paid on variable interest credit facilities is converted into a fixed interest rate. The ineffective part of the change in value of the interest rate swaps is recognised in the profit and loss account under financial income and expenses. | ||||||
| Credit risk | ||||||
| To mitigate the credit risk for its sales, Avebe has taken out credit insurance with a reputable credit insurer and in principle sales only take place to customers who meet a creditworthiness test. This may be deviated from in individual cases, but in such a case additional security will generally be obtained. | ||||||
| Liquidity risk | ||||||
| Avebe ensures that sufficient liquidity is always available to meet the obligations and that sufficient financial room remains available under the available facilities to always remain within the agreed covenants. | ||||||
| Market value of financial instruments | ||||||
| The 'notional amounts' included in the overview below are the underlying values for which the contracts for financial instruments have been concluded. The market values indicate how much would be paid or received from independent counterparties in exchange for terminating the contracts as of the balance sheet date, without further obligations. This market (fair) value of the instruments reflects the unrealised result on revaluations of the contracts at the exchange rates applicable on the balance sheet date. | ||||||
| Amounts x € 1.000 | Notional amount | Market value |
|---|---|---|
| Currency forward contracts | 25.724 | -286 |
| Currency call options | 91.842 | 3.370 |
| Interest rate swaps | 190.000 | 104 |
| Gas commodity contracts | 53.963 | -3.284 |
The above fair values, as determined by external parties, have been determined using available market information and current valuation methods. All financial instruments that Avebe holds as of July 31, 2025 are fully effective, and no fair value changes have been recognised in the profit and loss account.
Subsequent events
Acquisition of Solan Investment Sp. z o.o.
On August 18, 2025, Royal Avebe signed an acquisition agreement with Solan Investment Sp. z o.o., a producer of potato flakes and granules based in Głowno, Poland. Through this transaction, Avebe became the 100% owner of Solan. The acquisition was financed within the existing banking facilities. The acquisition has no material impact on Avebe’s profit or balance sheet.
New Accordion Facility
On August 18, 2025, a new accordion facility of EUR 40 million was agreed with the current banking syndicate. The amendment has been documented in an Amendment and Restatement Agreement.
Related party transactions
There have been no transactions with related parties that are not transacted under normal market conditions.