11. Financial assets

Non-listed equity investments accounted for at fair value:

Boostlogix Holding B.V.

In 2020, the shares in Boostlogix Zwolle B.V. incorporated into the new entity Boostlogix Holding B.V. In exchange for this, a 14.29% interest in Boostlogix Holding B.V. was obtained.

Trigona Dairy Trade B.V.

Investment relates to a 15.78% interest in Trigona Dairy Trade B.V. situated in Didam.

The following methods and assumptions were used to estimate the fair values:

The fair values of the non-listed equity investments have been estimated using a discounted cash flow (DCF) model, which necessitates management to make several key assumptions regarding the model inputs, such as forecast cash flows, the discount rate, credit risk, and volatility. Management has assessed the probabilities of the various estimates within the range, which are integral to the determination of fair value for these investments. Notably, the analysis revealed that there is materially no difference between the cost and the fair value calculated through the DCF model. Consequently, management has concluded that it is appropriate to carry these non-listed equity investments at cost in the financial statements, reflecting their fair value assessment.

A bridge loan of €10,450,000 carrying interest of 6% per year was issued to Meierei B.V. in 2021. In 2022 an amount of €450,000 was repaid and during 2023 €2,500,000 was advanced additionally.

As at 31 December 2025, Royal A-ware determined that the loans and associated interest receivables provided to Meierei B.V. were credit-impaired (Stage 3) in accordance with IFRS 9. This assessment was confirmed by the fact that local management of E-Piim Tootmine AS, (a part-ownership through Royal A-ware's joint venture Meierei B.V.), filed for bankruptcy on 11 February 2026 and was declared bankrupt by the Estonian court on 11 March 2026. This provided definitive evidence of E-Piim Tootmine's inability to meet its financial obligations and confirmed conditions that existed at the balance sheet date. The loan provided to Meierei B.V. was lent-on to E-Piim Tootmine. Consequently, Royal A-ware has recognised a loss allowance representing the full lifetime expected credit loss for these assets.

The gross carrying amount of the loan to Meierei B.V. of €12,500,000 and the direct loan to E-Piim Tootmine of €3,750,000, together with the associated accrued interest (other receivables), have been reduced to a net carrying amount of nil. In accordance with Royal A-ware’s accounting policy for credit-impaired financial assets, interest income is calculated by applying the effective interest rate to the amortised cost, which is the gross carrying amount net of the loss allowance. Due to the bankruptcy proceedings, the probability of recovery is deemed negligible, and a total impairment loss of €16,250,000 plus associated accrued interest of €2,152,000 has been recognised in the consolidated statement of profit or loss for the year ended 31 December 2025.

A shareholder loan of €2,500,000 carrying interest of 4.5% per year was issued in December 2022 to Kilkenny Cheese Holdings Limited. The loan has a maturity date equal to the final date of the shareholder agreement of 13 May 2040.

A shareholder (indirect) loan of  €3,750,000 carrying interest of 6% per year was issued to E-Piim Tootmine AS in 2024. In accordance with IFRS 9, Royal A-ware has determined that the bankruptcy constitutes a default event. Consequently, the loan has been transitioned to stage 3 (credit-impaired). The impairment related to this loan amounts to €3,995,000 of which €3,750,000 relates to the provided loan and the remainder consists of accrued interest that was presented under short-term receivables. 

The loan regarding Emaus is a loan to a third party. The loan is issued for four years, starting 5 January 2023. The interest on the loan is 5%. A guarantee on all current and future tangible, intangible and financial fixed assets is received as collateral.

The loan to Armalienke B.V. was provided in the financial year 2017. The loan was extended in 2024. The interest rate is 2%. The loan is due in full on 5 May 2027.