Ebro Foods closes the first half with revenues of 1,459 million, 26% more than in 2021


Ebro Foods announced on Tuesday that the amount of turnover for the first half of the year amounted to 1,459 million euros, 25.9% more than in the same period of 2021, which the company attributes to the “good management” of its procurement work which enabled it to make a “moderate increase” in its prices, as well as the “basic nature” of its products and the “loyalty” of consumers.

This was reported to the National Securities Market Commission by the company that owns brands such as Brillante, SOS or Garofalo.

Net income fell by 12.4% to 63.5 million euros, influenced by “exchange differences”, estimated at 12 million, and the “loss generated on the sale of Roland Monterrat”, which is rises to 20 million.

The company said that without the Roland Monterrat effect, net income would increase by more than 8.4%. Gross operating income (Ebitda) reached 169 million euros, or 14.3% more than in the first half of 2021.

Likewise, net debt amounts to 718.8 million euros, which is 214.1 million more than at the end of the 2021 financial year. This figure includes the payment of dividends made in April and June, as well as as the regularization of the payment to be made in October. (€88 million); an increase of 160.4 million currencies compared to the end of the previous year due to “strong positions taken on raw materials”; the purchase of InHarvest for 45.2 million; the payment of corporation tax for 63.9 million; 44.2 million of investments in capital goods (Capex), and the proceeds of 22 million euros from the sale of Roland Monterrat.

The company said it faces a “very difficult” year, due to high inflation, an “unfavorable raw materials environment due to extreme weather events”, a consumer who is “starting to bet on controlling costs and changing purchasing habits”. , and a “significant problem in the North American, French and North European labor market in finding factory personnel”.

By business, Ebro Food pointed out that the rice division achieved a turnover of 1,136.1 million and a gross operating result (Ebitda) of 146.6 million. The company highlights “the strength of its brands and the good performance of high value-added products” such as fragrant, instant and microwave rice.

However, the climatic situation caused a “significant reduction in the area cultivated with japonica rice”, both in Spain and in California, where “60% of the area” was planted, and in Italy, where the area sown decreased. by 20%. On the price side, the company highlighted the price increases for basmati rice and long grain rice in the United States.

As for its pasta line, sales reached 329.6 million euros and an Ebitda of 29.2 million. Ebro Foods described as a “milestone” the sale of the French sandwich and ready-meal company Roland Monterrat, which during its time in the group “did not achieve the expected profitability objectives”.

Regarding raw materials, the company pointed out that durum wheat remains at prices above 560 euros per tonne and, failing to know “what the end of summer harvest will look like” in Canada, “everything points to a second semester of high costs”.

In the area of ​​business, Garofalo ends a semester of “growth” in the main countries where it operates, highlighting the increases in Italy, France and Spain. In the fresh pasta activity, profitability in France and Canada was affected by “the temporary delay in the implementation of new prices and the lack of personnel in the factories”. Bertagni, for its part, increased its sales, particularly in the United States, where they increased by more than 20%.

(SERVIMEDIA) 26-JUL-2022 17:58 (GMT +2) JMS/mjg

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