Financial overview

SHV’s financial performance over 2020 resulted in a net income of € 469 million (2019: €428 million), with capital gains from the sale of Makro stores in Brazil and the sale of Makro Peru offsetting the negative impact of COVID-19 across most Groups and the costs of right-sizing the business for the future.

Adjusted for exceptional items and a negative foreign currency translation effect, operational performance varied across the Groups. SHV Energy improved performance despite lower sales, thanks to the combination of higher margins and strict cost control. Nutreco performed slightly below last year. After a strong start to 2020, the animal feed business in particular felt the impact of COVID-19, mainly due to closure of restaurants. This was partially offset by strong demand for shrimp feed. Makro results also fell, again due to COVID-19 restrictions such as restaurant and store closures and the restricted movement of end-consumers. Mammoet, ERIKS and ONE-Dyas were also significantly affected by COVID-19 and lower oil & gas prices. A significant fall in sales was followed by reorganisations and adjusted capital expenditure. NPM capital was unable to make a positive contribution to net income, with planned exits postponed to 2021 in the face of increased market uncertainty as result of COVID-19.

In 2020, the effective tax rate increased from 18.2% to 22.1%. This was mainly the result of lower non-taxable capital gains and dividends under Dutch participation exemption rules, and non-recoverable withholding tax charges. The effects were partly offset by the recognition of previously unrecognised deferred tax assets linked to tax losses and timing differences. In Switzerland, these relate to the sale of Makro Peru, in Brazil to the sale of Makro stores outside São Paulo and in the Netherlands to increased opportunities for utilisation.

A total of € 591 million was invested in operational fixed assets, mainly in gas cylinders and tanks at SHV Energy, heavy lifting and transport equipment at Mammoet and in production lines and facilities at Nutreco. Mammoet acquired ALE, the third largest player in the global heavy lift market, to strengthen its position in the industry. NPM Capital invested in Agrocare, Europe's largest tomato producer and Futurewhiz, a digital developer of educational applications for children. NPM Capital also increased stakes in Ohpen, a fast growing fin-tech company and Groendus (formerly Rooftop Energy), a specialist in rooftop solar energy, as well as making several smaller investments.