13. Investment in associates
Proportion of ownership in investment in associates
| Associate | Country | 31 December 2023 | 31 December 2022 | |||
|---|---|---|---|---|---|---|
| Compagnie des Placages de la Lowé S.A. | Gabon | 49% | 49% |
Compagnie des Placages de la Lowé S.A.
| in thousand EUR | 2023 | 2022 | ||
|---|---|---|---|---|
| At 1 January | 1 186 | 1 426 | ||
| Share of profit/(loss) of associates | –266 | –240 | ||
| At 31 December | 920 | 1 186 |
Precious Woods Tropical Gabon Industrie S.A., owned 100 % by Precious Woods Group, entered on 1st October 2020 into an arrangement with Compagnie des Placages de la Lowé S.A., (formerly called Placage Déroule du Gabon S.A.), also a veneer producing company in Gabon, owned 100 % by Arbor Group, France. Precious Woods Tropical Gabon Industrie S.A. acquired 49 % shares and voting rights in Placage Déroule du Gabon S.A. by contribution of net assets.
Precious Woods Group has no control or joint control over the investment but exercises significant influence.
Set out below is the summarized financial information for Compagnie des Placages de la Lowé S.A.:
| in thousand EUR | 31 December 2023 | 31 December 2022 | ||
|---|---|---|---|---|
| Current assets | 8 933 | 10 958 | ||
| Non-current assets | 6 308 | 6 430 | ||
| Current liabilities | 10 407 | 11 104 | ||
| Non-current liabilities | 3 734 | 4 028 | ||
| Equity 100% | 1 100 | 2 256 | ||
| Group's share in equity 49% | 539 | 1 105 | ||
| Goodwill | 677 | 677 | ||
| Elimination of unrealized profit on downstream sales | –296 | –596 | ||
| Group's carrying amount in the investment | 920 | 1 186 |
| in thousand EUR | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenues | 13 152 | 17 270 | ||
| Cost of sales | –12 816 | –15 667 | ||
| Administration expenses | –864 | –922 | ||
| Financial result | –490 | –477 | ||
| Earnings before tax (EBT) | –1 018 | 204 | ||
| Income tax (expenses)/income | –139 | –182 | ||
| Net profit/(loss) 100% | –1 157 | 22 | ||
| Net profit/(loss) 49% | –567 | 11 | ||
| Change in elimination of unrealized profit on downstream sales | 301 | –251 | ||
| Group's share of profit/(loss) | –266 | –240 | ||
The associate had no contingent liabilities or capital commitments as at 31 December 2023 or 2022. There are no unrecognized share of losses relating to the above associate.
Accounting policies
Associates are entities, over which the Group holds 20 to 50 percent of the voting rights and exercises significant influence. The Group does not exercise control over their financial and operational policy decisions.