28. Joint ventures
The Group does not have any significant investments in joint ventures as of 31 December 2022 and 31 December 2021. It has only a small investment in a joint venture in Japan (see note 26). The Company acquired the remaining 50% of the shares of its two joint ventures in the Middle East on 25 February 2021 (see note 27).
Overview
The Japanese joint venture, DNP • SIG Combibloc Co., Ltd, was formed in 2018 with the joint venture partner DNP and provides aseptic carton packaging solutions in Japan.
There have been no significant transactions with the joint venture in Japan in the years ended 31 December 2022 and 31 December 2021. Its net assets are also not significant.
Summary joint venture financial information
The following table provides certain summary financial information for the year ended 31 December 2021, representing the amounts presented in the IFRS financial statements of the current and former joint ventures and not adjusted for the Group’s ownership percentage.
(In € million) |
|
Revenue |
|
Expenses |
|
Profit after tax |
||||
|---|---|---|---|---|---|---|---|---|---|---|
2021 |
|
|
|
|
|
|
||||
Al Obeikan SIG Combibloc Company Ltd., Saudi Arabia1 |
|
14.9 |
|
(15.4) |
|
(0.5) |
||||
SIG Combibloc FZCO, UAE1 |
|
17.6 |
|
(20.8) |
|
(3.2) |
||||
DNP • SIG Combibloc Co., Ltd., Japan |
|
1.1 |
|
(0.6) |
|
0.5 |
||||
Total |
|
33.6 |
|
(36.8) |
|
(3.2) |
||||
|
||||||||||
Joint venture impact on the consolidated financial statements
(In € million) |
|
2022 |
|
2021 |
|---|---|---|---|---|
Carrying amount as of 1 January |
|
0.6 |
|
184.5 |
Share of profit/(loss) (net of income tax) |
|
– |
|
(1.6) |
Derecognition of pre-existing interest in the former joint ventures in the Middle East (business combination achieved in stages) |
|
– |
|
(178.8) |
Effect of movements in exchange rates |
|
– |
|
0.4 |
Other |
|
– |
|
(3.9) |
Carrying amount as of 31 December |
|
0.6 |
|
0.6 |
Accounting policy
The accounting policy for joint ventures is included in note 26.
The Group’s share of the profit or loss of joint ventures (net of income tax) is presented as part of the Group’s profit or loss from operating activities due to the Group’s close interaction with its current and former joint ventures.