Grupo SOS: lifts net profit to 16,9 million Euro

Madrid / ES. (gsos) Grupo SOS, Spanish brand leader in the segments of vegetable oil, rice and biscuits, obtained a net profit of 16,9 million EUR in the first nine months of 2008; 21,7 percent more than in the same period of 2007. Total Group turnover as at 30 September 2008 stood at 1,08 billion EUR; 5,7 percent up on the same period of 2007 – demonstrating the good performance of the company despite the prevailing economic climate. Profitability also increased notably, with EBITDA moving up by 9,2 percent to 75,4 million EUR.

The vegetable-oil division improved its performance, with an increase in turnover of 4,08 percent to 677 million EUR and with EBITDA up by 2,8 percent. In the Spanish market overall sales of olive oil rose by 4,8 percent, driven in the main by white-label brands. In general the market showed that many consumers have switched from premium products to cheaper alternatives. Notwithstanding, Grupo SOS managed to maintain its margins thank to the stability of the input price of olive oil which, according to the Group´s own forecasts, will remain generally flat throughout the 2008-2009 crop year.

In the Italian market the Group strengthened its leadership position and maintained its margins, aided by the fact that Italian consumers are much more loyal to their leading brands. Overall the international sales of Grupo SOS maintained their previous growth path, thanks in the main to exports from Italy.

In seed oils, good harvests brought input prices down marginally, paving the way for a gradual recovery in consumption, which had been hit by the marked increases in shelf prices in recent months. The vegetable-oil division of the Group accounted for 62,75 percent of Group turnover and 54,01 percent of consolidated EBITDA.

In rice turnover rose by 20,9 percent with respect to the same period of 2007, while EBITDA climbed by 24,1 percent. Of particular note were the performances achieved in the United States and Mexico, plus Saudi Arabia with the Abu Bint brand. In all the rice division made up 22,2 percent of Group turnover and 21,8 percent of consolidated EBITDA.

The biscuit division also achieved solid growth in the first nine months of the year, with sales moving up by 8,4 percent and EBITDA by 14,6 percent. This was achieved thanks to stable input prices, which have remained flat since the beginning of the year. The biscuit division contributed 9,7 percent of Group sales and 23,5 percent of total consolidated EBITDA.

Lastly the diversification division was affected by the downturn in sales of table olives and special products. The division accounted for 5,2 percent of total Group turnover and 0,5 percent of EBITDA.

In the course of the reported period Grupo SOS announced a capital increase as part of its funding plan for the recent acquisition of Bertolli. The entire increase has been subscribed by Corporacion Caja Madrid, the investment arm of the Caja Madrid savings bank, making it the holder of 10,5 percent of resulting Group equity.

Meanwhile Grupo SOS plans to complete the sale of its Cuetara biscuit business before the end of the year, thereby obtaining additional funds to defray the cost of the Bertolli transaction (source).

Addition: Around five companies are said to be currently interested in the biscuit unit, including Nutrexpa, Gullon, Delaviuda, Kraft Foods and Apax-owned Panrico – while a source close to Dulcesol said the company was no longer interested in the sale. Bankers said that although cash-rich trade buyers could be seen as preferred buyers, private equity firms have still been able to finance some smaller-scale buyouts with club loans

bakenet:eu