- The pandemic has continued favouring our sales in the second quarter while raising our operating costs, owing to the extraordinary measures required to meet demand in due time and form
- The Group remains determined to step up its industrial investments and help refloat the economy
- Within its corporate social responsibility, the company continues to pursue initiatives to help mitigate and combat the effects of the pandemic in all the countries in which it operates
Madrid, 29 July 2020. The Group’s net turnover grew by 23% over the period to €1,669.4 million, shored up by the defensive nature of our products in adverse situations and the excellent performance of our premium rice and pasta brands.
EOur EBITDA-A rose to €227.5 million, up 42.8% on 2019. Our CAGR has risen 23% over the past 3 years.
El The Group posted a Net Profit of €102.8 million, up 38% year on year. The quarter-on-quarter growth was 50% owing to the leverage deriving from our good business results.
Our net debt is now €949.6 million, €50 million less than at year-end 2019. This includes dividend payouts in April and June, as well as the €29.2 million payout to be made in October.
Core businesses
Rice
The cost of this commodity has been pushed up by the increased demand, especially in the USA, where the new harvest, currently underway, is expected to be 20% greater than the previous one, which should bring prices down to more moderate levels.
COVID has continued having a positive impact on the Division sales, which could have been even stronger were it not for the fact that some of our plants were already operating almost at full capacity.
Apart from the effects of the coronavirus, the trend observed in previous quarters prevails in Aromatic rice categories, where Tilda has achieved growth rates of over 50%. Instant and Microwave varieties complete the good performance of this division during the period.
The division has posted a turnover of €942.3 million, with an EBITDA-A of €123.4 million.
Pasta
Market prices for the raw material soared in Europe, especially in Italy, owing to the increase demand for Italian wheat and the quality problems encountered in the crop. In North America, the forecast of a 15% larger harvest has helped to maintain a more stable market.
COVID-19 also pushed up demand in this division, especially in the dry pasta category.
The American business made a particularly valuable contribution, achieving an EBITDA in the first half of the year equal to that of the full-year 2019. Garofalo has also posted record earnings, with growth in most of its markets.
The division has posted a turnover of €770.2 million, with an EBITDA-A of €111 million.
We continue on the path of growth and social responsibility
Our consolidated H1 earnings reflect the Group’s ability to respond to a sharp increase in demand, through efficient organisation of production. These earnings also reflect the adequate balance of our product portfolio, which has enabled us to meet two strongly divergent types of demand during this crisis: while some consumers have sought refuge in the more traditional categories, others have made up for not being able to eat out by increasing their consumption of premium products at home.
Through different solidarity initiatives developed in the different countries in which the Group operates, we offer continued support for measures responding to the social and health emergency brought about by the pandemic. At 30 June, we invested more than €9 million in social responsibility actions headed by our Foundation and coordinated in those countries. At the same time, increased labour and logistics costs and inflation in raw materials have pushed up our operating costs.
If the sanitary situation remains stable, without major outbreaks requiring renewed lockdown, we could anticipate strong business in the second half of the year, but with more normal growth rates.
Ebro Foods (www.ebrofoods.es) is the leading Group in the Spanish food sector in terms of turnover, profit, market capitalisation and international presence. Ebro is world leader in the rice sector and the second group in the international pasta sector. It has leading brands in each of these sectors, including: Panzani®, Ronzoni®, Skinner®, Healthy Harvest®, American Beauty®, San Giorgio®, Catelli®, Lancia®, No Yolks®, Wacky Mac®, Olivieri®, Bertagni®, Garofalo®, Santa Lucia®, Russo de Cicciano® and Roland Monterrat® in pastas and sauces; Mahatma®, Success®, Carolina®, Minute Rice®, RiceSelect®, Tilda®, Lustucru Selection®, Taureau Ailé®, Oryza®, Bosto®, Reis-Fit®, Riceland®, Danrice®, Risella®, Abu Bint®, Blue Ribbon®, Adolphus®, Comet®, Lassie®, Saludaes®, SOS®, Brillante®, La Cigala®, Sundari® and La Fallera® in the rice sector; Santa Rita® in high value-added ingredients; and Geovita® in the area of pulses, quick-cooking grains and other healthy ingredients.
For more information: comunicacion@ebrofoods.es
