13. Investment in associates
Proportion of ownership in investment in associates
| Associate | Country | 31 December 2024 | 31 December 2023 | |||
|---|---|---|---|---|---|---|
| Compagnie des Placages de la Lowé S.A. | Gabon | 49% | 49% | |||
Compagnie des Placages de la Lowé S.A.
| in thousand EUR | 2024 | 2023 | ||
|---|---|---|---|---|
| At 1 January | 920 | 1 186 | ||
| Net additions/(disposals) | 2 308 | – | ||
| Share of profit/(loss) of associates | –1 749 | –266 | ||
| At 31 December | 1 479 | 920 | ||
The former Precious Woods Tropical Gabon Industrie S.A., which merged with CEB on 1st January 2024, 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 2024 | 31 December 2023 | ||
|---|---|---|---|---|
| Current assets | 7 929 | 8 933 | ||
| Non-current assets | 4 426 | 6 308 | ||
| Current liabilities | 9 411 | 10 407 | ||
| Non-current liabilities | 1 065 | 3 734 | ||
| Equity 100% | 1 879 | 1 100 | ||
| Group's share in equity 49% | 921 | 539 | ||
| Goodwill | 677 | 677 | ||
| Elimination of unrealized profit on downstream sales | –119 | –296 | ||
| Group's carrying amount in the investment | 1 479 | 920 | ||
| in thousand EUR | 2024 | 2023 | ||
|---|---|---|---|---|
| Revenues | 11 963 | 13 152 | ||
| Cost of sales | –12 462 | –12 816 | ||
| Administration expenses | –2 999 | –864 | ||
| Financial result | –259 | –490 | ||
| Earnings before tax (EBT) | –3 757 | –1 018 | ||
| Income tax (expenses)/income | –174 | –139 | ||
| Net profit/(loss) 100% | –3 930 | –1 157 | ||
| Net profit/(loss) 49% | –1 926 | –567 | ||
| Change in elimination of unrealized profit on downstream sales | 177 | 301 | ||
| Group's share of profit/(loss) | –1 749 | –266 | ||
The associate had no contingent liabilities or capital commitments as at 31 December 2024 or 2023. 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.