Spanish food group Ebro Foods has announced it expects full-year EBITDA to rise 11% to €340 million, after a nine-month period which was boosted by the 'excellent performance' of the group's brands.
In the first nine months of its financial year, Ebro's net turnover grew 7.2% to €2.04 billion, with EBITDA rising 13% to €236.8 million.
Net profits were up 15.1% to €114.7 million.
Debt Increase
The group's net debt rose to €1.04 billion, chiefly due to the acquisition of the Tilda rice brand from Hain Celestial in August, for $342 million, as well as increased capex investment of €107 million in the period to 30 September, which is expected to rise to €158 million by year-end.
In terms of its core businesses, its Rice division posted turnover of €1.13 billion, and EBITDA of €139.8 million, with its Europe business 'performing well', particularly in Spain, France and the UK.
In North America, the Rice business is 'back on track' due to restructuring measures in Freeport and Memphis, while in Thailand, performance was described as 'very satisfactory'.
The group's Pasta business, meanwhile saw prices rise 'sharply' due to poor durum wheat harvests in all growing areas except for France and Spain.
At the same time, the group cut back on promotional activity, which produced 'very satisfactory results' for its Panzani brand, while Garofalo is making 'positive progress' in Spain and France, and its Bertagni and Lustucru brands are 'having a good year'.
Turnover in the group's pasta division was €948.8 million and EBITDA was €107 million.
'Competitive Environment'
'The consolidated results of the first nine months and the year-end estimates reflect, on the one hand, the Group’s diligence in solving the difficulties encountered by its North American business in 2018 and, on the other hand, the strength of our brands, which have reinforced their leadership and positioning in a highly competitive environment,' the group said in a statement.
'It is a year in which we have also built up the healthy and organic categories of our principal brands and concentrated our efforts and resources in the premium, fresh and convenience segments, pulling out of Alimentation Santé, an organic business directed at a specialised channel.'
Ebro expects a full-year turnover of €2,784.6 million for 2019, up 6.5% on the previous year.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
