The net result of Royal A-ware in 2024 amounts to € 64.7 million (2023: € 82.1 million). Decrease in net result is mainly attributable to the earlier mentioned start-up costs for newly started and/or acquired business and projects in 2024, some negative results within our business unit ‘special transport’ and increasing dairy raw material prices for which we were not able to charge these costs to our customers (mainly a timing effect). In 2023 we noted decreasing dairy raw material prices resulting in increasing margins and therefore significant differences compared with 2024.
The negative results in our business unit ‘special transport’ is in line with market circumstances.
Revenues in 2024 amount to € 3,813 million (2023: € 3,276 million), an increase of 16% in comparison to financial year 2023. Despite the increasing dairy and raw material prices, as well as the development of diesel surcharges, we have been able to grow revenue. The sales volume slightly grew within the B2B, retail, and export sales channels.
Revenues generated from the ‘core’ activities Dairy and Transport amounts to € 3,751 million (2023: € 3,199 million). Additionally, € 62 million (2023: € 77 million) in revenue was generated from the Automotive activities. Throughout the financial year, no activities were discontinued.
The total balance sheet grew from € 1,515 million in 2023 to € 1,983 million at the end of 2024. This is primarily the result of increased working capital and investments in tangible and financial assets. The solvency ratio stands at 24.1% (2023: 29.9%), based on Royal A-ware's equity, including subordinated loans, adjusted for goodwill on the balance sheet. Bank covenants as agreed per the senior facility agreement with lenders are all met per balance sheet date 2024.
Inventory value amount increased significantly in comparison to 2023. Inventory volumes has slightly increased compared to 2023. The value per kilo is therefore higher compared to the previous year. This is in line with the price development of dairy products.
Receivables and other assets increased in line with the increase in milk and other dairy prices and in accordance with the revenue development. Movements in other receivables relate to the timing of receipts of receivables in comparison to prior year.
The investments in tangible fixed assets (excluding right of use) in 2024 amounted to € 108 million (2023: € 86 million). The main investments comprises expansions and new packing lines in the packaging facilities in Culemborg and Almere, investments in Spain, to rebuild the acquired dairy factory, investments in Heerenveen (cheese factory) and investments in fresh dairy production sites in Belgium and in Coevorden (NL).
The average number of FTEs in 2024 amounts to 4,492 FTEs (2023: 4,358 FTEs). Majority of these FTEs are based in Almere and Culemborg (cheese packaging facilities) and transport entities.
The cash flow from operating activities is positive, amounting to € 107.6 million. The cash flow from investing and financing activities has been explained above when describing the investments in tangible fixed assets, receivables, inventories and refinancing the existing debt.