Madrid / ES. (epg) The Spanish Ebro Puleva Group reported a turnover of 2’368 million EUR in 2008, up 18,8 percent on 2007, and chalked up a net profit of 130,6 million EUR, representing a year-on-year growth of 44 percent. Summary:
- The net turnover rose 18 percent to 2’368 million EUR.
- EBITDA at 272 million EUR, equivalent to 277 million EUR at constant exchange rates.
- EBIT of 202 million EUR, or 208 million EUR at constant exchange rates.
- The launching of new products pushed advertising investment up to 86 million EUR; 5,8 percent more than in 2007.
- The consolidated results of 2008 show the real strength of the Group, which has grown at around 20 percent on a scenario of severe business and financial recession worldwide.
Operating figures recorded a satisfactory growth. The EBITDA, or gross operating income, grew by 19,8 percent to 272 million EUR, which would be around 277 million EUR at constant exchange rates, up 22 percent year on year. The EBIT, or net operating income, totalled 202 million EUR, 27 percent up on 2007, which would be 208 million EUR at constant exchange rates, 31 percent more than last year. In accordance with prevailing accounting standards, these results do not include the contribution by the sugar business. If that contribution were included, the EBITDA would be 320 million EUR and the EBIT 222 million EUR.
Pursuing the strategy of building value around the group´s brands, investment in advertising was raised by five million EUR, 6,0 percent more than in 2007.
Sound business model
The consolidated results for 2008 reflect our sound, solvent business model, which grew at around 20 percent in times of shrinking consumption worldwide. The brands have maintained their market shares, leaders in their different segments and the countries in which they operate.
The debt-free balance sheet that the company will present after conclusion of the sale of the sugar division, its adequate diversification on geographical markets and in businesses (present in 22 countries worldwide through 19 subsidiaries) and a product portfolio (with over 60 brands) which, apart from operating in staple food sectors, is perfectly in line with the new consumer habits, give Ebro Puleva significant competitive edge on which to base its future growth.
Core businesses
Rice: With an adequate management of raw material supplies, growth of rice consumption and the successful launching of new convenience foods, the rice division closes another outstanding year, with growth in both sales and profit margins. Its EBITDA rose 31,5 percent to 126,5 million EUR while turnover was up 20 percent to 891 million EUR.
Pasta: The stabilisation of raw material prices, the full incorporation of Birkel and an effective innovation and marketing strategy underpin the results of the pasta division, which has generated an EBITDA of 106 million EUR, 20 percent more than in 2007, raising the division turnover to 994 million EUR, a year-on-year growth of 30 percent.
Dairy: Thanks to its commitment to yield rather than volume, the value added of the Puleva brand and the remarkable performance of the infant food range (Max, Peques and Batidos) the dairy division has closed the year with satisfactory results, in spite of the cost of restructuring Lactimilk and the boom of private label brands brought about by the recession in consumption. This division posted an EBITDA of 50 million EUR and a turnover of 506 million EUR.
