Spanish food group Ebro Foods saw its net turnover increase 5.6% to €2.5 billion during its financial year 2018.
The group's EBITDA was down 13.4% to €310.7 million, although it surpassed year-end forecasts.
Its net profit amounted to €141.6 million, which is 35.8% less when compared with 2017.
New tax measures introduced in the USA, France, and Italy in the previous fiscal resulted in an extra income of €56.5 million, the company said.
If this amount is excluded, the year-on-year net profit registers a 14% drop.
Net debt increased by €187.4 million to €704.6 million for the period.
It includes debts incurred for acquisitions, setting up of a new headquarter in France, investment in organic growth in Thailand, Italy, India, the UK, the USA, and France.
Additionally, it also takes in to account the debt incurred to increase the working capital to secure raw material supplies.
Divisional Performance
The divisional turnover in its rice business amounted €1,412.7 million, with an EBITDA of €162 million.
The food group's rice business in North America saw a slight improvement in the fourth quarter.
Business in the division was affected by 'difficult circumstances' including the shortage of qualified personnel for its Freeport plant in Texas, the company said.
Meanwhile, its European business witnessed a 'highly satisfactory' performance, with increase in sales volumes and a stable EBITDA.
The turnover in its pasta division amounted to €1.3 billion, with an EBITDA of €156.4 million.
In France, sales dropped in the third quarter as a result of a hot dry summer.
Sales of its Panzani brand picked up in the last three months of the year.
The ‘Gilets Jaunes’ crisis affected the sales of fresh pasta, but bolstered the dry pasta business.
Garofalo continued to lead in the premium segment in France, Spain, and the USA, growing at a steady pace.
In North America, the company continued to compete with retailers promoting their own private-label products, and offering limited branded items.
Outlook
Backed by the positive effects of its performance in the third quarter, and the yields from its investments in CAPEX over the past three years, the company that it is in a good position to begin 2019.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
