Notes to the consolidated profit and loss account
Notes to the consolidated profit and loss account
Net turnover (12)
Business sectors
The breakdown of net turnover by category is as follows:
| (in thousands of euros) | 2024 | 2023 |
| Goods | 243.969 | 265.784 |
| Services | 26.346 | 26.002 |
| Other | 3.410 | 2.992 |
| Total | 273.725 | 294.778 |
Net turnover was €-21.053K (-7%) lower than prior year. The decreased sales are a result of strategic direction, focusing on integral margin improvement through focus on core activities, increase of own product share and choice of market approach. Moreover, order intake in general is lower due to a less favourable economic climate.
Geographical areas
| (in thousands of euros) | 2024 | ||||
| The Netherlands | Czech Republic | Romania | Other | Total | |
| Net turnover | 152.957 | 31.707 | 16.879 | 72.181 | 273.725 |
| (in thousands of euros) | 2023 | ||||
| The Netherlands | Czech Republic | Romania | Other | Total | |
| Net turnover | 162.103 | 31.417 | 20.388 | 80.870 | 294.778 |
The reported net turnover divided to geographical area is based on the country of residence of the customer (RJ 350.208). All countries with a net turnover of at least 10% of the consolidated net turnover are included in the overview (RJ 350.203). The amount other region of € 72.181K is mainly related to other European countries.
Cost of raw materials and consumables (13)
| (in thousands of euros) | 2024 | 2023 |
| Costs of raw materials and consumables | (94.398) | (103.376) |
| Costs of merchandise sold | (30.941) | (39.025) |
| Installation costs | (10.072) | (10.077) |
| Total | (135.411) | (152.478) |
The costs of merchandise sold contains additional margin related to a correction of prior year's margin eliminations on intercompany sales transactions to CI BV. The correction is not a material amount, so the correction is processed in this year's figures.
Wages and salaries (14)
| (in thousands of euros) | 2024 | 2023 |
| Wages and salaries own personnel | (55.437) | (54.780) |
| Wages and salaries temporary personnel | (7.184) | (7.880) |
| Total | (62.621) | (62.660) |
Social security charges (15)
| (in thousands of euros) | 2024 | 2023 |
| Pension charges | (4.482) | (4.432) |
| Other social security charges | (9.467) | (9.440) |
| Total | (13.949) | (13.872) |
Workforce
The average number of staff (in FTEs) employed by the group in 2024 was 1.238 (2023: 1.264), specified by segments as follows:
| 2024 | 2023 | |
| Sales | 336 | 339 |
| Operations | 657 | 729 |
| Back-office | 245 | 196 |
| Total | 1.238 | 1.264 |
| Employed in the Netherlands | 736 | 744 |
| Employed outside the Netherlands | 502 | 520 |
| Total | 1.238 | 1.264 |
The total average number of FTE decreased by 26, fully accounted for by a decline in temporary personnel. Fixed FTEs remained stable. This decline in workforce is mainly related to operations in the Netherlands and the Czech Republic. The average number of staff (in FTEs) employed by Ahrend Gulf in 2024 was 11.6 (2023: 11.7). These employees are stationed in the United Arab Emirates. The average number of staff (in FTEs) employed by Despace in 2024 was 3 (2023:0). These employees are stationed in China.
Amortisation and depreciation of intangible and tangible fixed assets (16)
| (in thousands of euros) | 2024 | 2023 |
| Other intangible fixed assets | (1.384) | (1.183) |
| Tangible fixed assets | (6.574) | (5.140) |
| Right of use assets | (6.623) | (6.905) |
| Total | (14.581) | (13.228) |
Other operating expenses (17)
| (in thousands of euros) | 2024 | 2023 |
| Other personnel costs | (3.053) | (2.778) |
| Car and travel expenses | (3.368) | (3.247) |
| Transportation and installation costs | (12.377) | (14.528) |
| Housing costs | (4.655) | (5.916) |
| Production costs | (2.596) | (3.057) |
| Office costs | (1.267) | (1.114) |
| EDP costs | (4.945) | (4.415) |
| Marketing and advertising costs | (1.650) | (1.609) |
| Other operating expenses | (4.125) | (5.071) |
| Total | (38.037) | (41.736) |
Research and development costs directly recognised as salary and operating expenses in profit and loss amount to € 1.657K (2023: € 1.997K). In 2024 development costs amounting to €16K were capitalised as intangible fixed assets (2023: €1K). Capitalised development costs amortised in the year amounts to €18K (2023: €16K).
Audit fees
The costs of the Group for the external independent auditor PricewaterhouseCoopers Accountants N.V., the audit organisation and the entire network to which the audit organisation belongs charged to the financial year are set out below.
| (in thousands of euros) | 2024 | ||
| PWC Accountants NV | Other PWC Network | Total | |
| Audit of the financial statements | 277 | 265 | 542 |
| Other audit engagements | 0 | 0 | 0 |
| Tax advisory services | 0 | 0 | 0 |
| Other non-audit services | 0 | 403 | 403 |
| Total | 277 | 668 | 945 |
| (in thousands of euros) | 2023 | ||
| PWC Accountants NV | Other PWC Network | Total | |
| Audit of the financial statements | 285 | 210 | 495 |
| Other audit engagements | 0 | 0 | 0 |
| Tax advisory services | 0 | 0 | 0 |
| Other non-audit services | 0 | 179 | 179 |
| Total | 285 | 389 | 674 |
The fees listed above relate to the procedures applied to the company and its consolidated group entities by the external and independent auditor as referred to in Section 1, subsection 1 of the Audit Firms Supervision Act (‘Wet toezicht accountantsorganisaties ‑ Wta’). These fees relate to the audit of the 2024 financial statements, regardless of whether the work was performed during the financial year.
Non-recurring expenses (18)
In 2024 non-recurring costs amounting to €3.3mln (2023: €2.4mln) were recorded as part of costs of raw materials and consumables (note 13), wages and salaries (note 14), social security charges (note 15), amortisation and depreciation (note 16) and other operating expenses (note 17). The non-recurring costs are, amongst others, related to personnel expenses, the implementation of a new ERP-system and double costs of the wood hub premises.
Financial income and expense (19)
| (in thousands of euros) | 2024 | 2023 |
| Interest income and similar income | 0 | 0 |
| Interest expense and similar charges | (1.421) | (1.331) |
| Interest on leases | (1.286) | (727) |
| Total financial income and expense | (2.707) | (2.058) |
In 2024 currency translation differences of €-1.147K (2023: €+45K) were included in profit and loss as part of interest expense and similar charges.
Income taxes (20)
The tax charge on the profit or loss in the consolidated profit and loss account can be broken down as follows.
| (in thousands of euros) | 2024 | 2023 |
| Result before tax | 6.041 | 7.966 |
| Corporate income tax | (1.028) | (1.562) |
| Deferred corporate income tax | 181 | 39 |
| Total tax credit/charge | (846) | (1.523) |
| 2024 | 2023 | |
| Applicable tax rate home-market NL | 25,8% | 25,8% |
| Applicable tax rate foreign countries | 21,0% | 24,0% |
| Effective tax rate | 14,0% | 19,1% |
The applicable tax rate in the home-market the Netherlands is 25.8% (2023: 25.8%). The applicable tax rate in the foreign countries is 21% (2023: 24%) and is based on the proportion of the contribution to the result by the group entities and the tax rate applicable in the respective countries. The change of applicable tax rate foreign countries is mainly caused by reported losses in several countries in 2023 and 2024, which impacts the proportional tax contribution. The tax rate did not change in most countries. For the Dutch fiscal unity the total amount of available deductible losses per end of 2024 is equal to €112.3mln (2023: €114.3mln based on submitted CIT return). For countries outside the Netherlands the total amount of available deductible losses per end of 2024 is equal to €166.7mln. Approximately €160mln thereof consists of unrecognised tax losses in Germany.
The effective tax rate deviates from the applicable tax rate as a result of permanent differences between commercial (accounting) profit and taxable profit, which can arise as a result of, amongst others, non-deductible expenses or non-recognisable profits and usage of unrecognised operating losses. The reconciliation between the applicable tax rate (NL) and effective tax rate for the Group as a whole is:
| Amounts in thousands of Euros | |
| Result before tax | 6.041 |
| CIT against applicable tax rate of 25.8% | (1.559) |
| Non deductible costs / non-recognisable profit NL | 48 |
| Recognition / usage of tax losses NL | 521 |
| Impact change in future tax rates NL | 0 |
| CIT from prior years NL | 570 |
| Tax impact of foreign operations | (426) |
| Total tax credit/charge | (846) |
| Effective tax rate | 14,0% |
Remuneration of members of the board of directors and supervisory board
The remuneration, including pension charges and other benefits, of current and former members of the board of directors and supervisory board charged to the company, its subsidiaries in the financial year amounted to €1.973K (2023: €2.067K) and €118K (2023: €115K) respectively.