Ebro Foods: Turnover up to 2’183 million Euro

Madrid / ES. (epg) In an extremely complicated scenario, Spain’s Ebro Foods S.A. has achieved a significant increase in both turnover and adjusted Ebitda, proving that our business model is apt also in adverse scenarios. We have posted a turnover of EUR 2,183 million, up 24.6 percent year on year thanks to the good performance of our brands, which continue to enjoy consumer confidence. The adjusted Ebitda has grown by 10.7 percent year on year to EUR 244.8 million, following a 3 percent increase in our investment in advertising to EUR 58 million, demonstrating our clear support and commitment to the development of our brands. The Net Profit on a like-for-like basis (i.e. excluding contributions by the divested dry pasta businesses) is down 15.8 percent to EUR 96.9 million, due to two factors:

  1. The strength of the dollar in the last quarter, with an adverse impact of EUR 12 million.
  2. The loss of EUR 20 million generated on the divestment in Roland Monterrat.

Stripping out these two one-off, extraordinary items, the net profit would have increased by 15.3 percent. Our net debt stands at EUR 712 million, EUR 207.3 million more than at year-end 2021. This figure includes:

  1. the dividend payments made in April, June and October in a total of EUR 88 million;
  2. an increase of EUR 185.2 million in the working capital from year-end 2021, owing to the strong positions taken in raw materials;
  3. the purchase of InHarvest for EUR 45.2 million;
  4. the payment of corporate income tax in a sum of EUR 80.1 million;
  5. EUR 75.6 million in CAPEX investments; and
  6. EUR 22 million revenue on the sale of Roland Monterrat.

Core businesses

Rice: The high cost inflation (logistics, raw materials, energy, etc.) has followed the trend set in previous quarters, affecting all aspects of our operations. In raw materials, the strength of our supply chain and the increase in working capital have been our most important tools for coping with the price hikes in japonica and basmati rice in the wake of the small harvests reaped in Spain, Italy and California due to the extreme drought, and in Pakistan due to flooding. We highlight the strength of our brands when consumers are more inclined to economise, and the positive evolution of high value-added products: aromatic, instantaneous, premium and microwave rice. The division posted a turnover of EUR 1,714 million and an adjusted Ebitda of EUR 213.3 million.

Pasta: Just like the rice division, this division has been hit by the strong cost inflation, of EUR 52 million. In raw materials, our business has had to deal with the high prices in the fresh pasta segment, because the short shelf-life of its ingredients rules out the option of long-term procurement policies. Within this business division, Garofalo and Bertagni achieved satisfactory results in the past quarter thanks to the positive effect of an improved exchange rate on their exports to USA and the good performance of their sales. Meanwhile, Lustucru maintains strong growth in its flagship product «Gnocchi». The division posted a turnover of EUR 479.6 million and an adjusted Ebitda of EUR 41.2 million.

Very positive results in a very difficult scenario

Differentiation, diversification, diligent decision-making, the expertise of our Commercial and Marketing team, the strength of our supply chain and efficient management are all part of our hallmark, and in the current situation they are more important than ever for coping with the complications that have arisen in the past quarter and throughout the year. The consolidated results of the first nine months also reflect the strength of our Rice Division, which continues increasing its market shares, and justify our strong commitment to the premium and value-added segments. Consumers still reward our high-value product portfolio with their confidence and loyalty, consistently achieving double-digit growth. Ebro anticipates a year-end turnover of between EUR 2,750 and EUR 2,800 million. The adjusted Ebitda is expected to be within a range of EUR 315-320 million, a very important landmark, considering the extremely complicated situation, taking us close to our goal of achieving profits similar to what we were earning before shedding Panzani (EUR 353 million).