- 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.
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.
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.