Verslag heel 2024 Duck-To Holding
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International
2024
-
-
855
Downstream
2023
-
17
591
Consolidated
2024
3,064
19
17
and eliminations
2023 3,557
595
19
revenues
2024 1,328
546
3,659
Upstream revenues
1,339 816
4,103
business center
Revenue from external customers 1,136 2,144
revenues
Inter-segment revenue 2,475
Upstream revenues
Total revenues
For the years ended 31 December 2024 and 2023, the Group has no major customers with revenues that account for 10 percent or more of any entity’s revenue.
53
Non-current assets other than financial instruments, deferred tax assets, net defined benefit assets and rights arising under insurance contracts are disaggregated based on the key locations of the assets as follows: (Unit: Million Baht) 2024
2023
Non-current assets Thailand The Netherlands
6,600
6,763
980
1,041
33. Provident fund The Group and its employees have participated in Thaipanich Master Fund Registered Provident Fund as approved by Ministry of Finance in accordance with the Provident Fund Act B.E. 2530. The Group and its employees contributed to the fund monthly at the rates of 3 percent of basic salary. The fund, which is managed by SCB Asset Management Company Limited, will be paid to employees upon termination in accordance with the fund rules. The contributions for the year 2024 amounting to approximately Baht 7 million (The Company only: Baht 7 million) (2023: Baht 6 million, the Company only: Baht 6 million) were recognised as expenses. 34.
Commitments and contingent liabilities
34.1 Capital commitments As at 31 December 2024, the Group has capital commitments of approximately Baht 9 million (The Company only: Baht 6 million), relating to the construction of factory, slaughterhouse and farm, the renovation of new farm and cold storage (2023: Baht 68 million, the Company only: Baht 5 million, relating to the construction of new factory and slaughterhouse, the renovation of farm and cold storage and purchasing machinery). 34.2 Service commitments The Group has entered into several services agreements. The terms of the agreements are generally between 1 and 5 years. Minimum future lease payments required under non-cancellable services contracts amounted to Baht 33 million (the Company only: Baht 28 million) (2023: Baht 37 million, the Company only: Baht 28 million).
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34.3 Commitment of agreements with farmers The Company has entered into agreements with farmers whereby it is committed to buy ducks from the farmers at a unit price stipulated in the agreements. As at 31 December 2024, the Company’s commitment to buy ducks in the first quarter of 2025 total approximately Baht 245 million (2023: the Company’s commitment to buy ducks in the first quarter of 2024 total approximately Baht 300 million). Duck-To Holding B.V. and its subsidiaries have entered into agreements with farmers whereby the subsidiaries are committed to buy commercial ducks from the farmers at unit price stipulated in the agreements. As at 31 December 2024, the subsidiaries’ commitment to buy commercial ducks in the first quarter of 2025 amounted to approximately Euro 3 million (2023: the subsidiaries’ commitment to buy commercial ducks in the first quarter of 2024 amounted to approximately Euro 3 million). Duck-To Holding B.V. and its subsidiaries have entered into agreements with farmers whereby they are committed to buy parent ducks and eggs from the farmers at market price. As at 31 December 2024, the subsidiaries’ commitments to buy parent ducks and eggs amounted to approximately Euro 4 million, covering the year 2025 (2023: the subsidiaries’ commitments to buy parent ducks and eggs amounted to approximately Euro 4 million, covering the year 2024).
34.4 Guarantees There were the following outstanding bank guarantees issued by banks on behalf of the Group. (Unit: Million Baht) Consolidated financial
Separate financial
statements
statements
2024
2023
2024
2023
Electricity use guarantees
28
27
22
22
Poultry quota application guarantees
4
4
-
-
Bank guarantees for:
The guarantees in respect of certain performance bonds as required in the normal course of business.
55
34.5 Letter of Credit As at 31 December 2024, the Group has outstanding commitments of approximately USD 1 million (The Company only: USD 1 million) under letter of credit, relating to purchasing raw material. As at 31 December 2023, the Group does out not have outstanding commitments under letter of credit. 34.6 Commitment of purchasing grandparent duck agreements The Group entered into an agreement to purchase of grandparent ducks in the future from an unrelated party. The amount of the commitment depends on the purchase volume and prices specified in the agreement, which is for a period of 10 years, commencing from 1 December 2016. 35.
Fair value hierarchy As at 31 December 2024 and 2023, the Group had the assets and liabilities that were measured or disclosed at fair value using different levels of inputs as follows: (Unit: Million Baht) Consolidated financial statements As at 31 December 2024 Level 1
Level 2
Level 3
Total
Assets measured at fair value Financial assets measured at FVTPL Equity instruments
-
-
31.1
31.1
160.0
-
171.8
331.8
Foreign currency forward contracts
-
1.6
-
1.6
Put option to disposing equity
-
-
58.5
58.5
-
0.6
-
0.6
-
-
240.4
240.4
Biological assets Derivatives
instruments Liabilities measured at fair value Derivatives Foreign currency forward contracts Assets for which fair value are disclosed Investment properties
56
(Unit: Million Baht) Consolidated financial statements As at 31 December 2023 Level 1
Level 2
Level 3
Total
Assets measured at fair value Financial assets measured at FVTPL Equity instruments Biological assets
-
-
32.6
32.6
135.4
-
173.6
309.0
-
0.3
-
0.3
-
-
57.9
57.9
-
0.3
-
0.3
-
-
184.0
184.0
Derivatives Foreign currency forward contracts Put option to disposing equity instruments Liabilities measured at fair value Derivatives Foreign currency forward contracts Assets for which fair value are disclosed Investment properties
(Unit: Million Baht) Separate financial statements As at 31 December 2024 Level 1
Level 2
Level 3
Total
Assets measured at fair value Financial assets measured at FVTPL Equity instruments
-
-
27.0
27.0
140.9
-
139.7
280.6
Foreign currency forward contracts
-
1.6
-
1.6
Put option to disposing equity
-
-
58.5
58.5
-
0.6
-
0.6
-
-
254.5
254.5
Biological assets Derivatives
instruments Liabilities measured at fair value Derivatives Foreign currency forward contracts Assets for which fair value are disclosed Investment properties
57
(Unit: Million Baht) Separate financial statements As at 31 December 2023 Level 1
Level 2
Level 3
Total
Assets measured at fair value Financial assets measured at FVTPL Equity instruments Biological assets
-
-
27.6
27.6
58.5
-
126.5
185.0
-
0.3
-
0.3
-
-
57.9
57.9
-
0.3
-
0.3
-
-
237.4
237.4
Derivatives Foreign currency forward contracts Put option to disposing equity instruments Liabilities measured at fair value Derivatives Foreign currency forward contracts Assets for which fair value are disclosed Investment properties 36.
Financial instruments
36.1 Derivatives (Unit: Thousand Baht) Consolidated
Separate
financial statements
financial statements
2024
2024
2023
2023
Derivative assets Derivative assets not designated as hedging instruments Foreign exchange forward contracts
1,588
316
1,561
316
58,508
57,936
58,508
57,936
60,096
58,252
60,069
58,252
645
274
639
274
645
274
639
274
Put option to disposing equity instruments of non-listed companies Total derivative assets Derivative liabilities Derivatives liabilities not designated as hedging instruments Foreign exchange forward contracts Total derivative liabilities
58
Derivatives not designated as hedging instruments The Group uses foreign exchange forward contracts to manage some of its transaction exposures. The contracts are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally from 1 to 4 months and uses interest rate swap contracts to manage risk associated with its long-term loan of oversea subsidiaries which financial liability is carrying floating interest rate. The detail of longterm loan from bank are set out in Note 21 to the financial statements. 36.2 Financial risk management objectives and policies The Group’s financial instruments principally comprise cash and cash equivalents, trade accounts receivable, loans to related parties and other companies, investments, and short-term and long-term loans from financial institutions. The financial risks associated with these financial instruments and how they are managed is described below. Credit risk The Group is exposed to credit risk primarily with respect to trade accounts receivable, loans, deposits with banks and financial institutions and other financial instruments. Except for derivatives, the maximum exposure to credit risk is limited to the carrying amounts as stated in the statement of financial position. The Group’s maximum exposure relating to derivatives is noted in the liquidity risk topic.
Trade receivables The Group manages the risk by adopting appropriate credit control policies and procedures and therefore does not expect to incur material financial losses. Outstanding trade receivables are regularly monitored. An impairment analysis is performed at each reporting date to measure expected credit losses. The provision rates are based on days past due for groupings of various customer segments with similar credit risks. The Group classifies customer segments by geography and customer type. The calculation reflects the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions.
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Financial instruments and cash deposits The Group manages the credit risk from balances with banks and financial institutions by making investments only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Group’s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Group’s Executive Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through a counterparty’s potential failure to make payments. The credit risk on debt instruments and derivatives is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. Market risk There are two types of market risk comprising interest rate risk and foreign currency risk. The Group enters into foreign exchange forward contracts to hedge the foreign currency risk arising on the export or import of goods. Foreign currency risk The Group’s exposure to the foreign currency risk relates primarily to its trading transactions that are denominated in foreign currencies. The Group seeks to reduce this risk by entering into foreign exchange forward contracts when it considers appropriate. Generally, the forward contracts mature within one year.
As at 31 December 2024 and 2023, the balances of financial assets and liabilities denominated in foreign currencies are summarised below. (Unit: Million foreign currency unit) Consolidated financial statements Foreign currency
USD
Separate financial statements
Financial assets
Financial liabilities
Financial assets
Financial liabilities
2024
2024
2024
2024
2023 2
2023
2
2
2023
2
2
2023
2
3
3
EUR
-
-
-
-
2
-
-
-
GBP
2
2
-
1
2
2
-
-
(Unit: Baht per 1 foreign currency unit) Foreign currency
Average exchange rate as at 31 December 2024
2023
USD
33.99
34.22
EUR
35.43
38.03
GBP
42.76
43.84
The Group’s exposure to foreign currency changes is not material.
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Interest rate risk The Group’s exposure to interest rate risk relates primarily to its long-term loans to related parties and other companies and long-term loans from financial institutions. Most of the Group’s financial assets and liabilities bear floating interest rates or fixed interest rates which are close to the market rate. The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. As at 31 December 2024 and 2023, significant financial assets and liabilities classified by type of interest rate are summarised in the table below, with those financial assets and liabilities that carry fixed interest rates further classified based on the maturity date, or the repricing date if this occurs before the maturity date.
61
Fixed interest rates
Consolidated financial statements
(Unit: Million Baht)
2024
2023
Effective interest rate
-
103
-
-
155
-
-
-
658
71
-
-
-
657
51
4
16
4
658
174
2
-
5
657
206
2.00
2.25
2.00
-
0.13 - 1.45
2.00
-
2.00
-
0.13 - 1.45
2023
-
-
-
Total
-
-
2024
-
-
-
2023
-
-
2024
Non-interest bearing
-
-
-
2023
-
-
2024
Floating interest rate
-
-
-
2023
Over 5 years
-
-
2024
-
-
-
2023
1 - 5 years
-
2
2024
-
5 -
2023
Within 1 year
-
4
2024
Cash and cash equivalents
4 -
(% per annum)
Trade and other receivables
-
Financial assets
Short-term loans to related party
-
16
Short-term loans to other companies
-
-
-
-
91
-
91
-
91
43
91
51
-
2.25
-
2.25
Long-term loans to related party
-
1.55 - 6.66
32
1,012
1.55 - 4.40
-
990
1,897
26
799
1,995
-
820
-
-
15
155
-
1.55 - 7.12
-
103
324
-
13
32
278
1.55 - 5.83
-
26
-
492
4
17
-
3,262
-
17
-
553
4
9
-
2,808
Long-term loans to other companies
8
1,573
-
492
Other financial assets
1,717
-
553
Financial liabilities
from financial institutions
-
Bank overdrafts and short-term loans
3,082
-
-
-
2,669
11
-
11
5,662
10
11
5,367
-
11
503
10
-
564
-
-
3,406
139
-
2,947
-
-
10
100
-
10
-
-
139
31 -
100
-
-
1,604
29
1,746
Trade and other payables Long-term loans Long-term loans from related person
62
Fixed interest rates
Separate financial statements
(Unit: Million Baht)
2023
-
2024
-
-
2023
-
-
65
2024
134
-
-
134
2023
-
2,000
87
1,899
14
2024
457
-
1,840
86
1,738
16
2023
2,663
563
1,630
2,065
87
1,899
79
2024
5,002
3,066
457
1,479
1,974
86
1,738
150
2023
5.60 - 5.85
-
4.40 - 5.85
-
-
0.13 - 1.45
2024
4.00 - 7.12
-
4.40 - 6.66
-
-
0.13 - 1.45
Effective interest rate
2024
-
-
-
65
-
563
-
4,856
Total
-
-
-
-
-
-
457
Floating interest rate Non-interest bearing
-
-
-
-
3,066
563
1- 5 year
-
-
-
2,663
3,066
within 1 year
Cash and cash equivalents
-
1,479
-
-
2,663
Bank overdrafts and short-term loans from financial institutions
2023
Trade and other receivables
1,630
-
-
-
(% per annum)
Other financial assets
-
-
-
Financial assets
Trade and other payables
-
1,479
Financial liabilities
Long-term loans
1,630
63
Interest rate sensitivity The following table demonstrates the sensitivity of the Group’s profit before tax to a reasonably possible change in interest rates on that portion of floating rate loans from financial institutions affected as at 31 December 2024 and 2023. 2024 Currency Baht
2023
Increase/
Effect on profit
Increase/
Effect on loss
decrease
before tax
decrease
before tax
(%)
(Million Baht)
(%)
(Million Baht)
+1
(27)
+1
(31)
-1
27
-1
31
The above analysis has been prepared assuming that the amounts of the floating rate loans from financial institutions and all other variables remain constant over one year. Moreover, the floating legs of these loans from financial institutions are assumed to not yet have set interest rates. As a result, a change in interest rates affects interest payable for the full 12-month period of the sensitivity calculation. This information is not a forecast or prediction of future market conditions and should be used with care. Liquidity risk The Group monitors the risk of a shortage of liquidity through the use of bank overdrafts, bank loans and lease contracts. The Group’s debt which will mature in less than one year at 31 December 2024 are more than 50% based on the carrying value of borrowings reflected in the consolidated and separate financial statements. The Group has assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Group has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders. The table below summarises the maturity profile of the Group’s non-derivative financial liabilities and derivative financial instruments as at 31 December 2024 and 2023 based on contractual undiscounted cash flows:
64
(Unit: Thousand Baht) Consolidated financial statements As at 31 December 2024 Less than
1 to 5
1 year
years
> 5 years
Total
Non-derivatives Bank overdraft and short-term loans from financial institutions
1,995,244
-
-
1,995,244
Trade and other payables
552,832
-
-
552,832
Lease liabilities
21,637
52,898
-
74,535
-
10,731
-
10,731
591,312
2,434,126
174,507
3,199,945
3,161,025
2,497,755
174,507
5,833,287
Long-term loans from related person Long-term loans Total non-derivatives
(Unit: Thousand Baht) Consolidated financial statements As at 31 December 2023 Less than
1 to 5
1 year
years
> 5 years
Total
Non-derivatives Bank overdraft and short-term loans from financial institutions
1,897,473
-
-
1,897,473
Trade and other payables
492,128
-
-
492,128
Lease liabilities
21,005
22,779
-
43,784
-
11,300
-
11,300
878,673
2,740,637
48,831
3,668,141
3,289,279
2,774,716
48,831
6,112,826
Long-term loans from related person Long-term loans Total non-derivatives
65
(Unit: Thousand Baht) Separate financial statements As at 31 December 2024 Less than
1 to 5
1 year
years
> 5 years
Total
Non-derivatives Bank overdraft and short-term loans from financial institutions
1,629,749
-
-
1,629,749
Trade and other payables
563,361
-
-
563,361
Lease liabilities
39,647
66,602
-
106,249
Long-term loans
551,712
2,289,637
-
2,841,349
2,784,469
2,356,239
-
5,140,708
Total non-derivatives
(Unit: Thousand Baht) Separate financial statements As at 31 December 2023 Less than
1 to 5
1 year
years
> 5 years
Total
Non-derivatives Bank overdraft and short-term loans from financial institutions
1,479,144
-
-
1,479,144
Trade and other payables
457,216
-
-
457,216
Lease liabilities
14,015
18,841
-
32,856
Long-term loans
834,578
2,619,886
-
3,454,464
2,784,953
2,638,727
-
5,423,680
Total non-derivatives
36.3 Fair values of financial instruments Since the majority of the Group’s financial instruments are short-term in nature or carrying interest at rates close to the market interest rates, their fair value is not expected to be materially different from the amounts presented in the statement of financial position. During the current year, there were no transfers within the fair value hierarchy.
66
36.4 Reconciliation of recurring fair value measurements, of financial assets, categorised within Level 3 of the fair value hierarchy (Unit: Thousand Baht) Consolidated financial statements Non-current
Non-listed equity
Derivative
biological assets
investments
assets
Balance as of 1 January 2023
154,918
51,135
39,365
Increase due to purchase/raise
162,958
-
-
Decrease due to sales/harvest
(148,697)
-
-
4,378
(18,571)
18,571
Balance as of 31 December 2023
173,557
32,564
57,936
Increase due to purchase/raise
129,695
-
-
Decrease due to sales/harvest
(127,940)
-
-
(3,474)
(1,452)
572
171,838
31,112
58,508
Net gain (loss) recognised into profit or loss
Net gain (loss) recognised into profit or loss Balance as of 31 December 2024
(Unit: Thousand Baht) Separate financial statements Non-current
Non-listed equity
Derivative
biological assets
investments
assets
Balance as of 1 January 2023
121,174
51,135
39,365
Increase due to purchase/raise
130,525
-
-
Decrease due to sales/harvest
(123,632)
(5,000)
-
(1,558)
(18,571)
18,571
Balance as of 31 December 2023
126,509
27,564
57,936
Increase due to purchase/raise
110,823
-
-
Decrease due to sales/harvest
(86,815)
-
-
(10,918)
(572)
572
139,599
26,992
58,508
Net gain (loss) recognised into profit or loss
Net gain (loss) recognised into profit or loss Balance as of 31 December 2024
67
Key assumptions used in the valuation are summarised below. Valuation
Significant
Sensitivity of the input to
Financial assets
technique
unobservable inputs
Rates
Biological assets
Discounted future
Weighted average
5.1%
cash flows
cost of capital.
(2023:
(decrease) in the weighted
6.2%)
average cost of capital
fair value 1% (2023: 1%) increase
would result in a decrease (increase) in fair value by Baht 0.8 million (2023: Baht 0.9 million). Non-listed equity
Adjusted book value Items that have a
investments
-
-
1% increase (decrease) in
significant impact on the value of assets and liabilities
Derivative assets - put option to
Discounted future
Weighted average
7.5%
cash flows
cost of capital.
(2023:
the weighted average cost
7.5%)
of capital would not result
disposing nonlisted equity
in the significant changes
investments
in the fair value. (2023: 1% increase (decrease) would result in a decrease (increase) in fair value by Baht 0.2 million).
37.
Capital management The primary objective of the capital management of the Group is to ensure that it has an appropriate capital structure in order to support its business and maximise shareholder value. As at 31 December 2024, the Group's debt-to-equity ratio was 1.22:1 (2023: 1.27:1) and the Company's was 1.14:1 (2023: 1.22:1).
38.
Approval of financial statements These financial statements were authorised for issue by the Company’s Board of Directors on 27 February 2025.
68