Madrid / ES. (epg) Spanish Ebro Foods posted (some weeks ago …) a turnover of 1’499 million EUR in the first nine months of 2013, down 1,3 percent year on year as a result of the change in its scope of consolidation following the sale of the Nomen and other smaller brands, a condition imposed by the Spanish antitrust authorities to allow the acquisition of the SOS rice business.
After the sale of Nomen, which had contributed five million EUR to the 2012 accounts, the foreign currency translation effect and a 17 percent increase in investment in advertising, which was raised to 62 million EUR in the nine-month period, the group Ebitda totalled 195 million EUR, six percent less (13 million EUR) than in the first nine months 2012. Of this 13 million EUR, nine million EUR corresponds to the increase in advertising and 3,7 million EUR to the foreign currency translation effect. Therefore, on like-for-like terms of consolidation, currency and advertising, Ebitda would have been greater than that of the same period of 2012.
In this context and with smaller extraordinary items, the company has posted a net profit of 99,5 million EUR, a year-on-year drop of almost ten percent. The company´s final debt totalled 259 million EUR, 12,3 percent less than at 30 September 2012, incorporating the investments made to purchase a plant in India and 25 percent of the Italian company Riso Scotti.
Rice: Owing to a number of factors external to the business development as such, this year is proving very complicated for the rice division and the satisfactory progress of its brands in both Europe and the United States, which have increased their market shares and achieved excellent shelf positioning with a broad array of new launchings, is not reflected in its accounts. These external factors included mainly the massive default of contracts in India for the supply of Basmati, the severe drought in Texas and the diminished yield of the business in Morocco as a result of large-scale smuggling of rice into the country. Against this backdrop, the division has posted a turnover of 825 million EUR and Ebitda of 99 million EUR.
Pasta: With stable durum wheat prices, this division is on an upward trend and is starting to reap the first benefits of the change of strategy implemented in the United States in the first half of 2012. In Europe, in a scenario of strong growth of private label brands and constant promotions by rivals, our brands have managed to preserve both market shares and yield. In the United States, thanks to the new strategy, profit margins have started to improve and the new gluten-free products and sauces launched in Canada are doing very well. The future consolidation of Olivieri will considerably boost the potential of this division on the other side of the Atlantic. The division turnover for the period is 709,3 million EUR and its Ebitda 102 million EUR.
Full-year 2013 outlook: Ebro expects to reach a turnover of 2’048 million EUR in 2013, more or less on a par with 2012. Its Ebitda, hampered by the factors mentioned earlier, will deteriorate by around 6,6 percent to 280 million EUR and a net profit of 143 million EUR is expected, approximately ten percent down on 2012, which included the extraordinary gains from the sale of Nomen.