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Overig advies 18/02/2021 18:15
Amsterdam Commodities N.V. (Acomo), the Euronext Amsterdam-listed trader in spices and nuts, edible seeds, tea, food
ingredients and organic ingredients, achieved strong results in the fiscal year 2020. While the food ingredients sector overall has
proven to be robust in the midst of the global pandemic, the business was impacted in various ways by COVID-19 with respect to
demand, supply, price levels and the cost of freight. Adjusted segment EBITDA was €57.6 million, equal to 2019. Total reported
EBITDA of €49.9 million includes one-off items such as acquisition costs and unrealized FX hedge results. The adjusted net profit
equalled 2019 with €33.3 million. The reported net profit including one-off items amounted to €27.0 million.
Strong sales levels and margins were achieved in an exceptional environment. COVID-19 had a substantial impact on the business.
Demand shifts between customers were substantial due to lockdowns. Foodservice demand declined materially throughout the
year, whereas demand from food manufacturers and retail increased, especially in the first half of the year. In addition, supply
chains were disrupted due to lockdowns in several areas around the world, leading to unpredictable deliveries. In these challenging
circumstances Acomo’s key role in the supply chain was underlined by the fact that the Group continued to serve customers,
despite spikes in demand, with available stock in the countries of destination. When these stocks were not sufficient and existing
supply chains were disrupted, the Acomo teams proved their valuable skills in finding alternative sources for products. Measures
were taken to provide a safe working environment for our employees and all units remained operational throughout the year. In
the second half of the year, transportation out of Asia became increasingly challenging due to shortage in availability of sea
containers and limited shipping capacity. Besides COVID-19, the environment was characterized, with a few exceptions, by in
general relatively low product price levels for most of the year. Towards the end of the year price levels started to improve. The
Board of Directors is very pleased with the strong performance of the Group in this exceptional year.
In December 2020 the Group acquired Tradin Organic, the leading supplier of organic food ingredients in Europe and the US. The
new combination, with a projected annual turnover of €1.2 billion, forms a leading player in both conventional and organic food
ingredients and positions Acomo perfectly for further growth.

(in € millions) 2020 2019 Change € Change %
Adjusted segment EBITDA 57.6 57.6 0.0 0%
FX translation result (0.5) - (0.5) -
Unrealized FX hedge results (2.5) (0.7) (1.8) -
Holding (incl. acquisition costs) (4.7) (1.3) (3.4) -
Reported EBITDA 49.9 55.6 (5.7) -10%
Pending the finalization of the external audit, the financials 2020 shown above are unaudited.

(in € millions) 2020 2019 Change € Change %
Adjusted net profit 33.3 33.4 (0.1) 0%
FX translation result (0.2) - (0.2) -
Unrealized FX hedge results (net of tax) (1.9) (0.5) (1.4) -
Acquisition costs (net of tax) (4.2) (0.8) (3.4) -
Reported net profit 27.0 32.1 (5.1) -16%
Pending the finalization of the external audit, the financials 2020 shown above are unaudited.

In 2020, consolidated reported sales of Amsterdam Commodities N.V. (Acomo) increased by 0.8% to €707.4 million
(2019: €701.4 million). Reported gross profit decreased by -4.6% to €94.7 million (2019: €99.3 million). For the full year 2020,
reported net profit reached €27.0 million, a decrease of -€5.1 million versus 2019 (€32.1 million, -15.7%).
Unrealized FX hedge results (due to not applying hedge accounting) had a negative effect on reported gross profit of -€2.5 million
(2019: negative €0.7 million). The impact of unrealized FX hedge results on reported net profit was -€1.9 million (2019: negative
€0.5 million).
Acquisition costs of €4.2 million due to the acquisition of Tradin Organic are included in the reported EBITDA. Since acquisition
costs are not tax deductible, the impact on reported net profit was also -€4.2 million, resulting in an increase of the effective
corporate income tax rate by +2.5 percentage points.
Reported consolidated figures 2020 - unaudited (in € millions) 2020 2019
Sales 707.4 701.4
Gross profit 94.7 99.3
EBITDA 49.9 55.6
Operating income (EBIT) 39.8 46.7
Financial result (2.9) (4.6)
Corporate income tax (9.9) (10.0)
Net profit 27.0 32.1

Currency euro/US dollar
The euro/US dollar exchange rate strengthened during the first four months of the year. After April, the US dollar depreciated
strongly against the euro, resulting in a year-end euro/US dollar exchange rate of 1.230 (2019: 1.121). The average euro/US dollar
exchange rate in 2020 was 1.142 (2019: 1.119). The FX rate change contributed negatively to sales (-€6.5 million) and net profit (-€0.2 million).

‘It has been a very unusual year for all of us,’ said Group Managing Director Allard Goldschmeding. ‘COVID-19 had a serious impact
on our business. On the surface, the results seem stable, but in reality there were major changes and challenges. In the first half of
2020, the unprecedented lockdowns around the world resulted in a significant drop in demand from foodservice customers, which
was partially offset by increased volumes from food manufacturers and retail, fuelled by hoarding behaviour among consumers. The
second half of 2020 saw new lockdowns, which resulted in continued low demand from foodservice customers, yet with less extreme
changes in demand from other sectors. In addition, the impact of COVID-19 on supply chains became more significant in the second
half, especially due to shortages of sea container availability and a dramatic increase in freight rates from Asia. In these turbulent
times, our teams were able not only to continue to operate the business and serve our customers but also managed to achieve great
results. I am proud of our teams and of their ingenuity in finding solutions to these challenges. At the end of the year, after a long
period of negotiations, we took an important strategic step in the further growth and development of the Group through the
acquisition of Tradin Organic, creating a powerful Group with activities across both traditional and organic agri-food ingredients
with a projected total annual turnover of € 1.2 billion. I welcome all Tradin Organic employees to the Group and I am confident
that the new combination has a bright future.’

Acquisition Tradin Organic
On 10 November 2020, Acomo announced that it had reached an agreement with SunOpta Inc. for the acquisition of SunOpta’s
international organic ingredients business comprising The Organic Corporation B.V. and Tradin Organics USA LLC (together, ‘Tradin
Organic’) for a cash and debt-free consideration of €330 million. Tradin Organic is a leader in the fast-growing global market of
organic ingredients, and its diversified portfolio of activities and customers is highly complementary to that of Acomo.
The transaction was closed on 30 December 2020, following the resolutions of the extraordinary general meeting, which was held
as a webinar on 22 December 2020, the successful raise of financing of both debt and equity, and clearance from the competition
authorities for the acquisition of Tradin Organic.

The transaction is identified as a business combination, which is accounted for using the acquisition method (IFRS 3: Business
Combinations). The acquisition method requires assets acquired and liabilities assumed to be measured at their accounting fair
values as at the acquisition date. As at the date of this press release, the assessment of the fair value of the acquired assets and
liabilities of Tradin Organic is still in process.
The impact of the transaction on the 2020 revenues and earnings of Acomo is not material given the short time Acomo had control
over Tradin Organic in the fiscal year 2020.

New financing facilities
In December 2020, Acomo entered into a new bank financing agreement with both existing and new lenders. The new agreement
replaces the existing Group financing facilities and partially funds the acquisition. The syndicated financing includes a €275 million
secured revolving credit facility, a €70 million accordion and a €150 million five-year amortizing acquisition term loan. The senior
debt facilities were syndicated by Coöperatieve Rabobank U.A. (‘Rabobank’) and ING Bank N.V. (‘ING’) as bookrunning mandated
lead arrangers, having also ABN AMRO, BNP Paribas, Deutsche Bank and Fifth Third Bank as mandated lead arrangers and Citizens
Bank as lead arranger.
In addition to the bank financing, Acomo successfully raised over €96 million in equity through an accelerated bookbuild offering on
1 December 2020, to fund the remaining part of the acquisition. The new shares represent approximately 19.99% of the Company’s
issued share capital.
The new capital structure of the Group meets the projected liquidity and solvability requirements of the Company and
accommodates further growth.

Activity reviews per segment
Spices and Nuts
Catz International in Rotterdam, the Netherlands, reported stable but slightly lower results compared to previous year. Pepper
prices saw some recovery in the second half of the year, although historically still at a very low price level. Market prices of
cardamom increased in the first half year, followed by a decrease in the second half. Prices of ginger and nutmeg increased during
the year. Desiccated coconut price levels increased substantially over the year, due to limited availability. Supply from main origins
such as the Philippines and Indonesia was disrupted due to natural disasters, pandemic impacts and shifts in the allocation of raw
materials to end products, resulting in lower business volumes. Dehydrated vegetables saw less favourable market circumstances
for some products. Market prices of most major nuts declined in the first half of 2020, but with some recovery towards the end of
the year. Through good trading decisions and professionalism of the teams, Catz International achieved a very healthy profit in
challenging supply chain circumstances.

Tovano in Maasdijk, the Netherlands, active in packed nuts and dried fruits, reported a lower profit as a result of lower demand
from its customers due to COVID-19 lockdowns.
King Nuts & Raaphorst in Bodegraven, the Netherlands, active in nuts and rice crackers, continued its year-on-year growth path and
achieved higher sales at stable margins. The company experienced improved price levels in the fourth quarter and had a strong end
of the fiscal year. King Nuts & Raaphorst faced major swings in demand from its different customers due to COVID-19 implications
and local lockdowns, but was able to address them very effectively.
Delinuts in Ede, the Netherlands, active in nuts and dried fruits, realized a strong increase in sales and margin through a focussed
commercial approach with improved results towards the end of the year. The management team was able to offset the substantial
lower demand from major foodservice customers.

Edible Seeds
Red River Commodities in Fargo (ND), USA, active in the sourcing, processing and distribution of edible seeds, reported a
substantial increase in both sales and profit. Both the SunButter® brand and the wildlife division saw increased sales and profits.
The SunButter® brand perfectly fits the healthy nutrition trends that received more attention due to COVID-19 and benefitted from
increased consumer demand. The wildlife division saw increased consumer demand due to the fact that more people have discovered the attraction of feeding wild birds as they are spending more time at home during the COVID-19 lockdowns. The
processing and SunGold divisions reported lower results due to substantial declines in demand as a consequence of COVID-19
lockdowns. Demand for snack products especially declined, due to the absence of sporting events and fewer consumers going into
convenience stores. The import trading entity Red River Global Ingredients in Winkler, Canada, expanded its activities and achieved
substantial growth in sales and profit.
The European seeds business reported substantially lower profits due to a decline in demand. A substantial part of the customer
portfolio was affected by local lockdowns including the closure of local shops. COVID-19 also led consumers to shift away from
speciality stores, such as bakery stores, to one-stop-shop buying at main retailers. Both Red River-Van Eck in Etten-Leur, the
Netherlands, and SIGCO Warenhandel in Hamburg, Germany, were affected by this.
Acomo’s investment in Food Ingredients Service Center Europe (FISCe) in Etten-Leur, the Netherlands, the new product treatment
facility which offers the food industry a 100% natural method of pasteurization and sterilization for a broad range of products, was
finalized at the end of 2020. The facility is operational and serving its first customers.

Royal Van Rees Group, headquartered in Rotterdam, the Netherlands, achieved an increased net result in an unprecedented world
environment. Van Rees saw different tea pricing developments between different regions. Indian prices were lifted due to a drop in
outputs, caused by COVID-19 movement restrictions and heavy flooding. Sri Lanka and African tea-producing countries saw good
availability and stable prices over 2020. Kenyan tea prices went up in the second half of 2020, breaking the downward price
pressure of the last years. Van Rees reported lower sales at slightly improved margins and improved cost levels. The focus on
expanding in specialty teas supported the increase in margins. The Van Rees team has shown its commitment to continue to strive
for expanding value-added products and services.

Food Ingredients
Snick EuroIngredients in Ruddervoorde, Belgium, active in food ingredients and creating innovative concepts with added value for
the food industry, maintained its sales levels yet at somewhat lower margins. COVID-19 resulted in a decline in demand from
foodservice-related customers, which was partly offset by an expansion of business with other customers. The blending business
continued to develop well and proved that Snick EuroIngredients is well positioned to support customers with value-add concepts
and innovative solutions in developing areas such as vegetarian products.
Corporate income tax
Due to one-off acquisition costs that are not deductible for tax purposes, the reported effective corporate income tax rate
increased in 2020 and had a negative effect on the reported net profit. The 2020 adjusted tax rate excluding the acquisition costs is
in the range of the tax rate of 2019, slightly impacted by a different country mix.

As previously announced at the time of the Tradin Organic acquisition, the Company will not distribute a final dividend for the year
2020 and will also not distribute an interim dividend in 2021. The Company will use the available cashflow to reduce the
acquisition-related term loan. However, going forward Acomo will maintain its long-term dividend policy as this is considered to be
an important component of our ambition to create shareholder value.

Outlook 2021
The Company is confident that the acquisition of Tradin Organic will significantly contribute to the results of Acomo in 2021.
General business activity started the year in line with previous year. Given the nature of the Group’s activities, it is impossible to
forecast market developments or likely Group results. It is furthermore impossible to estimate the continued impact of COVID-19
and related lockdowns on the business results in 2021. However, we are convinced that our teams will continue to do their utmost
to generate good results for the shareholders.
Balance sheet and other financial information
The balance sheet as at 31 December 2020 will include the acquisition of Tradin Organic. The Company is in the process of
determining the Group balance sheet implications of this acquisition. The balance sheet and other financial information will be
reported in the 2020 annual report which will be published on on Thursday 11 March 2021, after the close of

General meeting of shareholders
The annual general meeting of shareholders will be held on Thursday 22 April 2021 at 10.30 am. Based on the current regulations in
relation to COVID-19 it is likely that the meeting will be virtual through a webinar. More details will be published at a later date.

Rotterdam, 18 February 2021
Board of Directors

Als gevolg van het feit dat eenmalige overnamekosten niet aftrekbaar zijn voor de vennootschapsbelasting nam de gerapporteerde effectieve belastingdruk toe in 2020, met een negatief effect op de gerapporteerde nettowinst. De gecorrigeerde belastingdruk in 2020 exclusief de acquisitiekosten was op een vergelijkbaar niveau als die in 2019, licht beïnvloed door een andere landenmix.
Zoals reeds aangekondigd ten tijde van de overname van Tradin Organic, zal de Vennootschap geen slotdividend uitkeren over het jaar 2020, en ook geen interim-dividend in 2021. De Vennootschap zal de beschikbare kasstroom inzetten ter verlaging van de term loan die is aangegaan in verband met de overname. In de toekomst zal Acomo echter het langetermijnbeleid ten aanzien van dividend continueren, aangezien dit gezien wordt als een belangrijk onderdeel van de ambitie om waarde te creëren voor onze aandeelhouders.
Vooruitzicht 2021
De Vennootschap is ervan overtuigd dat de overname van Tradin Organic een significante bijdrage zal leveren aan de resultaten van Acomo in 2021. In het algemeen is het activiteitenniveau in het begin van 2021 in lijn geweest met het voorgaande jaar. Gezien de aard van de activiteiten van de Groep is het niet mogelijk om marktontwikkelingen of resultaten van de Groep te voorspellen. Het is evenmin mogelijk in te schatten hoe COVID-19 en de daarmee samenhangende lockdowns in 2021 de resultaten zullen beïnvloeden. We zijn er echter van overtuigd dat de inspanningen van onze teams zullen blijven leiden tot goede resultaten voor onze aandeelhouders.

d,d, 19/2/21
Acomo EUR 21,00 -40ct vol. 155.117

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