Ebro Foods: Group completed a »historic« year 2023

Madrid / ES. (epg) Ebro Foods S.A. closed the best year in the Group’s history, reaching results that exceed those obtained when the company still had the Dried Pasta Division. A target which shows the strength and solvency of the business model and the success of the strategic decisions.

The permanent engagement for an important investment in organic growth, the recovery of the profitability of our pasta business within all markets, with special relevance in the fresh pasta segment, the implementation of our latest investments for the Ready to Serve category, a more moderate inflation context in different areas, such as logistics and energy, our sound supply chain, the loyalty of a consumer who, within a savings context, continues its commitment for the differentiation of our brands and our appropriate geographic diversification are, inter alia, some of the key factors that have helped achieve these excellent results.

All our financial parameters have therefore grown satisfactorily throughout this period. The net turnover figure went up to EUR 3,084.5 million, a 3.9 percent more than in 2022, fundamentally spurred by the positive evolution in the Rice Division. The Ebitda-A rose by 15.7 percent, to EUR 387.1 million, with regard to 2022, one of the best Ebitda in our history, higher than those obtained before the sale of the Dried Pasta Divisions in North America and France.

Net Profit reached EUR 187 million, a 53.2 percent more than in the previous year, a comparison above all of the other results because, in 2022, it included the extraordinary loss of EUR 20 million due to the sale of the Roland Monterrat business. In addition, it includes a profit of EUR 1.8 million from the sale of the Woodland (USA) plant.

The Net Debt, on its behalf, stands at EUR 570.4 million, EUR 192.2 million less than at year-end 2022, following an investment in CAPEX of EUR 141.7 million, (EUR 22.9 million more than in the previous year) and EUR 88 million paid out in dividends. In this section, after a period of important investments in which we have remunerated our stakeholders with an ordinary dividend sustained in time, in this year 2024, the Board of Directors will propose a 15.8 percent increase to the General Shareholders Meeting, up to 0.66 euros gross per share.

Results according to business lines

Rice Area: The Rice Division, despite having suffered the negative impact of the third year of drought in Spain (almost a 50 percent reduction in Spanish rice availabilities, a decrease in industrial activity and increase in costs), it ends an excellent year thanks to:

  1. The high management capacity of our supply chain and the sound strategic positioning in the main supply zones;
  2. The strength of our brands with a product portfolio capable of withstanding the growth in the MDD;
  3. The experience of our commercial teams;
  4. The good behaviour of the high value products;
  5. The growth of more than 40 percent in the Middle East with the Tilda and Abu Bint trademarks, and the consolidation of our business in Africa, with the Cigala leadership in Morocco and the strong entry in other countries such as Ghana and Libya.

With this, the Division’s turnover stands at EUR 2,443.7 million and the Ebitda-A reaches EUR 311 million.

Pasta Area: The Pasta Division closes a good year and recovers the return to profitability in all the markets where it operates. One of the most notable targets has been the important recovery in volumes in the fresh pasta business, more than 8 percent in France, largely thanks to the strong growth in the «Gnocchi», flagship of Lustucru. Also noteworthy is the good behaviour of Bertagni, which increases references and gains points in the distribution. In the dried pasta category, Garofalo reports a positive evolution, consolidating its leadership in the premium segment in Italy with growth in other markets such as the United States, Canada and Spain. The turnover in the Division stands at EUR 652.2 million and the Ebitda-A at EUR 90.4 million.