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Borges Agricultural & Industrial Nuts closes the year with €5.7 million in net income

  • BAIN reaffirms its commitment to sustainable agriculture and KM0 by divesting from its farms located in the Sacramento Valley, United States and focusing on agricultural development in the Iberian Peninsula.
  • BAIN closed the year marketing a total of 32,418 tons of nuts.

 

July 29th, 2021. Borges Agricultural & Industrial Nuts (BAIN), one of the subsidiaries of Borges International Group, has closed the fiscal year, as of  May  31,  2021, with a  Net Amount  of  accumulated Turnover of 143.4  million euros and 32,418  tons   of    nuts  marketed.

 Turnover has decreased by  20.6% compared to the  previous  year mainly caused   by the reduction in the price  of  the  main  raw  materials   marketed  by the Group such as  walnuts  and  almonds.

Adjusted EBITDA for the second half of the year shows a clear recovery in the industrial and commercial business compared to the previous year, which despite being in a scenario of low prices has increased in absolute value by €1.7 million.

The Consolidated Result  reflects on the one  hand  the profit  obtained  derived from  the  agreement reached,  dated May 28, by  which  Carriere  Farms  acquired  82% of the capital of Borges of California,Inc. controlled  to   date  by BAIN, for an  amount  of 19.9  million   dollars,  with the  aim  of developing  the agricultural project, in the Iberian Peninsula, betting  on  the  development of a responsible and proximity agriculture.  This  operation  has  produced  an  accounting result of EUR 9  million.  On   the other hand, the  Consolidated Result has been  reduced by the impact of the FIFO system derived from  the fall in prices  of   raw  materials, such as  almonds,  walnuts  and  pistachios. The  application  of the  FIFO  method in the marketing  of this  product  implies  that, to the current sales, at  market prices  of  the  moment, the  cost  of  the  product  purchased  with  greater  antiquity is assigned, at  higher prices,  to  cover the  medium  and  long-term  sales    made on the basis of prices  of  that  moment,  causing  a  transfer  of  results  in the  coming  quarters,  when  the opposite effect  is  expected   to occur.

These figures do not  contemplate, to a large  extent,  yet the potential benefits  of  the PALM agricultural development  plan,  initiated  by BAIN in 2016, which has  consisted of the  planting of 1,145.1  new  hectares  for the  production  of  almonds, which have  begun  their  production  gradually  until  reaching  their  maximum  production in the  coming   years.

 

 International presence

BAIN in its  commitment to internalization  at  the  end  of the  year  has  marketed  its  products in 58  countries. Exports    have accounted for  51.7% of  its  turnover, reaching  €74  million,  reaffirming the company’s international profile. Almonds  are the  best-selling   product by the BAIN Group,  reaching  63% in value of  its total sales,  followed  by  walnuts,with10% of the total and pistachios with 6%.

 

 BAIN is firmly committed to the agricultural business

BAIN manages a total of 2,307 hectares  located in Portugal and Spain, of  which  1,214  hectares are in production, and 403 that will enter production  gradually  in the  coming  years. The total number of  hectares  includes  295.9 hectares of the  Pistachio  BAIN Project, 67% higher than the  end  of the previous year,   the result  of vertical cooperation  with producers,  offering an alternative for the  improvement of agricultural income, a  project  that in 2022 is expected to  reach  500 hectares, with more than  50 producers from the provinces  of  Huesca, Lleida and Tarragona.

 

BAIN’s business  project has  a  clear  focus  on  Sustainability

Bain’s  new  plantations are governed  by sustainable agriculture criteria.   After joining  the  EsAgua  platform, whose objective is to position Spanish  companies  as  benchmarks in   the water footprint and in the  field  of  sustainability, BAIN has  started  the GLOBAL GAP  (Good  Agricultural  Practices)certification process,  one  of the  international standards  in  terms  of  good  agricultural  practices and sustainable agriculture. Throughout this  year  the certification  of 81.5 hectares has been  obtained in the Casarente farm in Badajoz, 36.1 hectares in the farm.

Cuartillo in Badajoz, 386.2 hectares in the  Machados farm in Portugal and 167.2 hectares in the Benavides farm in Badajoz, with which BAIN  reaches  953 hectares. certified, after  having  obtained  the  certification in 2019 of 69.4 hectares of the Palheta Farm  in Portugal, in 2018 of 82.7 hectares of the  Cantillana farm in Badajoz and in 2017 of 129.9 hectares of the El  Carquí farm in Granada.

Additionally, the  Company  dedicates a total of 104.1  hectares to the  conservation of the  environment  and  biodiversity.