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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 2024/2025 2023/2024
Starch  218.938   205.662 
Modified starch  498.725   532.200 
By-products  87.358   84.955 
   805.021   822.817 
  2024/2025 2023/2024
European Union 50% 47%
Rest of Europe 5% 6%
Rest of the world 45% 47%
  100% 100%

12. Other operating income

The other operating income consists of the following:

Amounts x € 1.000 2024/2025 2023/2024
Commissions, royalties and other  3.342   3.182 
Result sale of fixed assets  -   688 
   3.342   3.870 

The commissions, royalties and other consists for a significant part of an annual fee.

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 2024/2025 2023/2024
  KPMG Accountants N.V. Other KPMG-network KPMG Accountants N.V. Other KPMG-network
Audit of the financial statements  378   64   344   62 
Other audit services  45   -   -   9 
Tax services  -   37   -   41 
Other non-audit services  23   -   -  5
   446  101  344   117 
         
Total    547     461 

The fees listed above relate to the procedures applied to 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 2024/2025 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 1,248 (previous year: 1,285). Of this total, 278 (previous year: 285) work outside the Netherlands. Social security contributions and pension costs include EUR 13,962 (previous year: EUR 13,661) in pension costs. The average number of employees can be divided as follows based on the organisation within Avebe.

  2024/2025 2023/2024
Operations  876   895 
Commerce  122   108 
Group  250   282 
   1.248   1.285 

15. Depreciation and impairment of assets

Depreciation and impairment of assets consist of the following components:

Amounts x € 1.000 2024/2025 2023/2024
Depreciation tangible fixed assets  43.322   41.140 
Impairment on tangible fixed assets  1.525   1.713 
Reversal of impairment losses  -3.402   - 
Depreciation intangible fixed assets  4   4 
   41.449   42.857 

16. Result of participation

The result of participation consist of the following components:

Amounts x € 1.000 2024/2025 2023/2024
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 1.1 million (previous year: EUR 3.8 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 10.5 million as of 31 July 2025 (previous year: EUR 9.3 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 7.9 million (previous year: EUR 10.3 million)are valued at the same applicable rate. The remaining temporary differences of EUR 25.8 million (previous year: EUR 23.7 million) have not been valued due to uncertainty regarding future settlement options. Compared to the applicable tax rate, the 2024/2025 financial year results in a different effective tax rate of 17.3%, caused by tax deductions and the development of temporary differences.

The effective tax rate is 17.3%. The numerical connection between the applicable and the effective rate:     

  2024/2025 2023/2024
Applicable tax rate in the Netherlands 25,8% 25,8%
     
Tax effect of:    
• Different applicable tax rates abroad 12,0% 31,3%
• Results under the Dutch participation exemption -12,1% -20,1%
• Non-deductible amounts/permanent differences 11,0% 24,6%
• Effect of change in valuation of losses, credits or temporary differences -1,9% 66,8%
• Utilisation of carry-forward losses from previous years -6,4% -37,7%
• Correction previous periods 0,0% -18,4%
• Other effects -11,1% -13,2%
Effective corporate tax rate 17,3% 59,1%

As of the financial year 2024/2025, the regulations regarding Pillar 2 income taxes apply to Avebe. The cooperative has assessed the impact of these regulations for the group and determined that there is no impact on the financial statements. In jurisdictions where the de minimis test does not apply, the effective tax rate exceeds 15%. The cooperative does not file Pillar 2 income taxes on behalf of other group entities, nor are any Pillar 2 income taxes charged to the cooperative.