2022 was a year of new and unexpected challenges. We set out with cautious optimism as vaccination rates increased and societies reopened. Yet we had no idea of the new and grave circumstances that were soon to follow. Needless to say, we were all shocked by the tragic events following the Russia Ukraine conflict that shook the international community.

These events had an additional impact on the already high raw material, commodity and energy prices, the ongoing supply chain disruptions, the rising inflation, as well as the extremely tight labour market.

Mammoet and Nutreco were both directly impacted by the conflict: Mammoet, with a presence in Russia and activities encompassing several projects and Arctic LNG in particular; and Nutreco with a number of factories and sales operations in both countries.

Our immediate focus was on safeguarding our colleagues in the region as much as possible, then on assessing whether and how we could continue operating in the Ukraine and on how we could retract from Russia. We also put an immediate halt to new investments, new projects, and new exports in and to Russia. The Ethics & Compliance departments at SHV Holdings, Mammoet and Nutreco  put a huge amount of time into making sure we remained compliant with the frequently changing rules and regulations.

After selling its livestock feed operation to local management in June, Nutreco no longer has any presence in Russia. Therefore, the exposure to Russia is driven by Mammoet’s remaining in-country presence, comprising an operational company and the contractual commitments associated to the Arctic LNG project as all other contractual obligations have been fulfilled within the limitations of applicable sanctions. SHV’s and Mammoet’s main priority now is the full reduction of its exposure to Russia. Managing this is complicated due to the dynamic sanctions and intricate stakeholder landscapes. SHV is prioritizing the speed of execution and despite the complexity, progress has been made.

For Makro, the process of strategic reorientation has been ongoing after the sale in 2021 of Makro stores outside the São Paulo region. This entailed another period of reflection and analysis to assess the best possibilities to ensure future growth. In January of 2023 this has resulted in two transactions, in Brazil and in Venezuela. In Brazil, an agreement has been signed with Grupo Muffato for the sale of 16 stores in the area of São Paulo, pending approval of CADE, the Brazilian competition authority. The remaining 8 Makro stores will be sold or rented out to other interested parties. Once all finalised, Makro will no longer be present in the Brazilian market. In light of the successful cooperation of Makro Venezuela with Redvital, where they are offering not only food but also medicines, medical supplies and equipment in the stores, an agreement was signed to rent all Makro stores to Redvital for them to operate. Redvital will buy the Makro name and will remodel all the remaining stores to the new concept.

Decisions are based on the fact we feel that with both Redvital and Muffato as new owner, Makro Venezuela and Makro Brazil will have better possibilities to strengthen and further grow the business.

Overall performance in 2022 was resilient despite the Groups facing the unprecedented consequences of the Russia Ukraine conflict and the indirect effect it had on supply chains and commodity markets. The high inflation levels affected all Groups, albeit to different extents. SHV Energy managed the volatile environment well through proactive margin management and a robust hedging strategy. Makro was able to improve its performance in Colombia and Argentina yet continued to suffer from competitive pressure in Brazil. Mammoet, supported by a strong orderbook, increased its year-on-year performance in most regions, excluding Russia. In line with SHV’s policy, an immediate halt was put to new investments and new projects and Mammoet has initiated an orderly exit of its activities in Russia, whilst remaining compliant with rules and regulations. Although ERIKS has been facing multiple supply challenges it was able to increase margins. To reflect the renewed strategy, the North American activities were divested, allowing ERIKS to focus more on the European operations. Nutreco experienced challenging market circumstances affecting volumes, margins and costs. Performance was impacted by increasing material costs, rising energy costs and inflation that pressured margins. Raising sales prices proved difficult due to deteriorated on-farm economics and farmers reducing herd sizes, following lower demand due to end-consumers decreasing the share of relatively expensive proteins in their diet. The execution of short-term cost initiatives limited the impact of these challenges. Kiwa managed to double its net sales through the acquisition of Vinçotte, Intega and CMW Geosciences, but also faced challenges, mainly related to the shortage of qualified staff.  NPM Capital realised a number of profitable divestments, albeit lower compared to 2021. Due to the high oil & gas prices ONE-Dyas’ operational performance improved.

The increase in income from operations before exceptional items and amortisation to 691 million (2021: 633 million) was offset by an increase in amortisation of intangible assets, mainly as a result of the acquisitions by Kiwa and lower exceptional items. Furthermore, NPM Capital generated a lower income from its private equity investments. The increase in the operational performance of our investments in affiliates, which mainly represents the result of One-Dyas, was offset by an increase in the total tax charge for the year, mainly due to the additional tax levies in the oil & gas industry within ONE-Dyas. Interest costs increased because of new additional financing at Corporate and the Groups and rising interest rates. Loss on the sale of subsidiaries, mainly reflecting the divestment of Nutreco’ s Russian activities and the impairment of our investment in Lightyear resulted in negative other financial results.  Overall, this resulted in a decrease in net income to 400 million compared to last year (979 million).

The challenging market circumstances also required that we kept looking ahead and stay alert in order to respond quickly if and when needed. Next to that, numerous other issues, be it internal or external took time and attention.

To reflect the increased focus on cash preservation and cash generation, additional efforts have been deployed to improve relevant cash flow insights as well as to increase the transparency regarding working capital levels within Groups. This is a broad and shared effort which will require further progress to enable a more detailed and integrated view to support improved decision making.

Looking forward, other priorities are related to the improvement of data flows between Groups and SHV Holdings to support the quicker generation of better insights in the business. Additional emphasis will furthermore be put on automation projects to reduce current required reporting efforts.

New and upcoming EU regulations require SHV and the Groups to increasingly measure, disclose, and, where necessary, act upon the impact of their activities on people and on the planet - as well as the impact of a changing environment on their own operations. As perhaps the most significant regulation, the Corporate Sustainability Reporting Directive (CSRD) will apply from 1st of January 2025. Various workstreams have been set up in preparation, with relevant experts advising on the possible effects of CSRD and other sustainability-focused regulations. These workstreams will also benefit SHV and the Groups through improved risk management, better market positioning, and continued access to capital and financing.

The internal audit department continued to add value by identifying new opportunities to improve operations; prevent issues such as fraud, corruption, and avoidable losses; and support management in making balanced, risk-based decisions. An SHV-wide safety audit generated valuable insights to help reinforce the culture of safety across the organisation. In order to smoothen the integration of SunSource into SHV Energy, a so called welcome review was conducted.

Conducting business with integrity, and in full compliance with all applicable laws and regulations, ultimately depends on the conduct of individual colleagues. The subject of ‘Culture and Behaviour’ was frequently addressed during 2022, with management teams across all Groups acting upon the outcomes of their compliance culture assessments. Workshops were organised to improve insights in human rights-related risks.

In line with this commitment to act with integrity and operate in an ethical manner, SHV also seeks to comply with all relevant tax frameworks and pay the right amount of tax at the right time. We believe that full transparency and accountability demonstrates this commitment and builds trust.

With this in mind, SHV will implement ‘Pillar Two’, a new G20/OECD initiative aimed at ensuring all multinationals pay a minimum of 15% tax in the countries in which they operate. As the Pillar Two rules are complex, an impact and readiness assessment based on the model rules published by the OECD was conducted. The implementation of a Pillar Two model into the financial reporting processes will be the next step, before the rules coming into effect at the start of the 2024 financial year.

In 2022, SHV also endorsed the Tax Governance Code issued by VNO-NCW (the Confederation of Netherlands Industry and Employers). SHV’s tax strategy has been updated accordingly, although most of the principles outlined were already being applied. From 2023 onward, SHV will start publishing more tax information in accordance with the Code.

SHV Procurement started to implement a more structured approach to commercial projects within the Groups, consolidating indirect spend, lowering costs, and aimed at achieving significant annual savings. A new Cross-Group Spend Dashboard, connecting SHV and the Groups, has been instrumental in generating additional savings across categories such as IT, temporary labour, professional services and insurance. A Value Tracking Tool was also deployed across all the Groups to increase the efficiency of project management and reporting. Together, these initiatives will provide a solid base for additional future cost savings.

Another priority is related to cyber security. Cyber related criminal activity is becoming ever more sophisticated, smarter, and stealthier due to increasingly advanced tools and larger scale attacks. Defending the organisation against these attacks involves an ongoing game of ‘cat and mouse’ and we have to continuously remain on top of developments.

This evolution in cybercrime, in addition to current geopolitical circumstances, have shaped a landscape of diverse threats from criminals, hacktivists, and even nation states. The situation calls for an agile and resilient defence based not on if an incident will occur, but on how and when. With this in mind, the focus is not just on protecting SHV from attacks, but also on detecting and responding to threats. A number of simulations have been organised across the Groups to practice and enhance the response and also a SHV wide audit related to ransomware readiness has been conducted. All this has resulted in SHV wide improvements of security measures related to prevention, detection and response to attacks.

Innovation has and always will play a key role in finding new ways to grow. The SHV cross-Group Innovation Community, sponsored by the EBD, has matured into a self-managed one, where the Innovation Leads from the Groups organise quarterly meetings with different innovation themes. Additionally, two successful SHV-wide Innovation Days were organised focusing on ‘Business value through Innovation’ and ‘How to create value out of Data’. Over 100 colleagues from the management boards, innovation-, data-, communication- and IT teams joined from all Groups, collaborating together to scale up innovation throughout the SHV Family of Companies.

Adaptfy, SHV’s global Data & Analytics (D&A) organisation, took a significant step to becoming the SHV Family of Companies’ designated data analytics solution provider by doubling its team to 100 colleagues, and opening a hub in India to better service its clients. 55 projects have now been completed with another 18 ongoing. This allows Adaptfy to not only focus on ad hoc use cases, but to cross-pollinate and deploy scalable solutions across businesses.


Being the employer of choice is playing an increasingly vital role in attracting and retaining talent in a time of labour shortages. The SHV approach to people development and leadership skills will play a key part in achieving this goal. Therefore, SHV will adopt a more pragmatic approach by shifting from a training culture to one of continuous learning by offering user-friendly, human-centred, futureproof learning programmes to attract and retain talent and stay closer to daily business.

As part of the drive to promote an inclusive learning culture, ‘Management Essentials’, a programme based on scientific research and designed to increase the basic leadership skills of managers was introduced. The programme covers topics such as the growth mindset, trust and psychological safety, and developmental feedback.

Going forwards, we will focus on a more structured collaboration between the Groups; an internal coaching and mentoring framework; and the gamification of our leadership values as part of the SHV onboarding process. Other initiatives include a ‘Young SHV’ community and an internal, cross-Group job site accessible to all SHV colleagues.

Taking the stage

For the greater part of the last three years, our colleagues have faced a litany of demanding challenges: geopolitical conflicts, lockdowns, disrupted operating environments, supply chain disruptions, rising energy prices, and high inflation. Yet in the face of such incredibly tough conditions, their hard work and dedication have enabled SHV to report a set of results that we could never have hoped to achieve had we known what lay ahead.

So once again, we want to take this opportunity to thank each and every one of them for the remarkable job they have done. People have always been at the heart of SHV. And over the last few years, our people have shown that SHV is in their hearts as well.

Looking ahead, there is little doubt that 2023 will represent yet another year of challenge, with no significant improvement to the economic climate expected. The effects of the market disruptions that dominated 2022 will linger on and will unquestionably impact the performance of the Groups.

Supply chains will remain complex due to ongoing sanctions and other restrictions brought on by the geopolitical situation, increasing the need to secure supplies from different regions and sources. There are no signs of the labour shortage coming to an end. Energy prices will remain high and volatile. The unstable geopolitical situation, not only caused by the Russia Ukraine conflict but also by the growing tension between the US and China will have an impact as well.

Operational improvements across the entire SHV organisation will need to be driven by a disciplined execution of short term strategic initiatives, combined with an unwavering focus on cost control, working capital management and margin improvement. Now more than ever, the EBD will prioritise support for the Groups in managing these circumstances in the most effective ways possible.

J.P. Drost

2022: another year of challenge

Russia Ukraine

Resilient performance

Sustainability reporting

Tax compliance

Cyber security

Talent development

Special thanks

Challenges ahead