Ebro Foods shoots up business and Ebitda until June, with growth of 26% and 14.3%

Ebro Foods shoots up business and Ebitda until June, with growth of 26% and 14.3%

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Despite the fact that the first half of the year has been plagued with uncertainties, neither the price crisis nor the shortage of cereals has affected the Andalusian multinational Ebro Foods. The listed company reported this Tuesday that the net amount of the turnover rose to 1,459 million euros, which represents a growth of 26% on what was invoiced between January and June 2021.

Ebro Foos explain this good evolution of the business “mainly thanks to the basic character” that its products occupy in the shopping basket, as well as “consumer loyalty” with respect to its brands and “good supply management”, which has made it easier to make a moderate increase in our rates.



This positive evolution of the business has also been reflected in the growth of profits. The company has reported that the adjusted Ebitda increased by 14.3%, reaching 169 million euros compared to the same period in 2021.

Net Profit on a comparable perimeter –excluding the contribution of the divested dry pasta businesses– decreased by 12.4%, to 63.5 million euros, influenced by currency exchange differences, estimated at 12 million euros , and the loss generated in the divestment of Roland Monterrat, amounting to 20 million euros. Isolating the Roland Monterrat effect, net profit would grow by more than 8.4%, the company specifies.

The net debt has also grown and stands at 718.8 million euros, which represents an increase of 214.1 million compared to the end of the 2021 financial year. The company has detailed that this figure first includes the payment of dividends made in April and June, as well as the accrual of the payment to be made in October, in total 88 million euros; secondly, an increase of 160.4 million euros in working capital over the close of the previous year, due to the strong positions taken in raw materials; in third place, the purchase of Inharvest, for 45.2 million euros; in fourth order, the payment of Corporate Tax, for 63.9 million euros, to which must be added, in fourth place, 44.2 million euros in CAPEX investments and, in sixth place, the income of 22 million euros euros for the sale of the company Roland Monterrat.

Results by business lines

In the rice area and with regard to raw materials, Ebro explains that the adverse weather situation has caused a significant reduction in the cultivated area of ​​japonica rice, both in Spain (70% in Andalusia and 90% in Extremadura), and in California, which has only been able to plant 60% of the area, and Italy, which has also reduced 20% of the area planted. On the price side, the rises in basmati rice and long rice in the United States have been notable.

As the main positive aspect of this division, the listed company highlighted the strength of its brands and the good performance of high-value products: aromatic, instant and microwave. With this, the sales figure for rice stands at 1,136.1 million euros, with an Ebitda-A of 146.6 million euros.

With respect to paste areaAs far as raw materials are concerned, durum wheat remains at prices above 560 euros per tonne and, in the absence of seeing what the end-of-summer harvest will be like in Canada, everything points to a second semester of higher costs tall.

In the field of business, Garofalo completed a six-month period of growth in the main countries in which it operates, highlighting the increases in Italy, France and Spain. In the fresh pasta business, profitability in France and Canada has been affected by the temporary delay in the implementation of the new rates and the lack of personnel in factories. bertagnifor its part, has increased its sales, especially in the United States, where they grew by more than 20%.

One of the milestones of the division has been the sale for 22 million of the French company of sandwiches and fresh ready meals Roland Monterrat, which in its time in the Group has not managed to meet the expected profitability objectives.

The sales figure of the pasta division stood at 329.6 million euros, with an Ebitda-A of €29.2 million.

Extremely uncertain and difficult scenario

Despite the outstanding evolution of the business, Ebreo Foods acknowledges that it is “facing a very difficult year, with inflation that continues to climb unstoppably, an unfavorable context of raw materials due to extreme weather events, a consumer who is beginning to bet due to cost containment and changes in their buying habits, and a major problem in the North American, French and Northern European labor market in finding factory staff”.

With all this, the group emphasizes that it has obtained satisfactory results during the semester thanks to a large extent to the set of a series of distinctive characteristics of its own, such as a strong and well-diversified supply chain, the implementation of saving measures, the growing investment in advertising and innovation and solid brands, with a wide range of differentiated references, capable of building a relationship of loyalty with the consumer.

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