- H1 earnings were once again higher than those recorded in the same period of last year, when record earnings had been posted, confirming yet again the Group’s sound progress and correct strategic approach.
- The solid growth of frozen, instant and value added categories in the Rice Division maintained their positive trend throughout the period.
- The fresh pasta business confirmed its recovery and, boosted by Olivieri and Bertagni, achieved significant growth during the period.
- True to our commitment to consumers, we have lowered our prices in those markets where the price of certain raw materials has fallen.
- We expect property sales to generate extraordinary earnings of around €30 million during the year, of which €4.4 million were received in June, and €1.5 million and €23.5 million in July.
The first quarter growth was confirmed during this period, exceeding the already excellent earnings achieved in the first six months of 2023. This is a clear indication that we made the right investments in CAPEX, with which we have boosted sales of fresh pasta products and those with higher value added, and of the favourable evolution of both our Divisions and their respective brands, which outstripped growth on their respective markets.
Accordingly, the most important financial metrics maintained satisfactory growth throughout the period.
Net Profit totalled €108.8 million, up 16.9% year on year.
Adjusted EBITDA rose 8.1% year on year to €210.5 million, thanks largely to the strong growth in the Pasta Division.
We registered a year-on-year growth of 1.4% in turnover to €1,580.1 million after adjusting our prices on some markets, in keeping with our commitment to consumers.
Meanwhile, our Net Debt stood at €572.5 million, €2.1 million more than at year-end 2023 following dividend payments in April and June and accrual of the dividend payment for October, in a total sum of €114 million.
Core businesses
Rice Division
Our Rice Division remained strong throughout the period.
In raw materials, the rainfall in March enabled us to forecast almost normal sowing in southern Spain for the 24/25 harvest and, in consequence, improved utilisation of our industrial plants. Moreover, farm gate prices of aromatic rice varieties from Asia remained stable, although purchase costs were subsequently raised by the inflation in freight.
The Herba Group’s business has performed well in Europe and Asia, with a good evolution of Riviana sales, especially in aromatic and microwave products and strong growth in the frozen, instant and value added categories.
On the whole, the Division posted a turnover of €1,235.3 million and an adjusted EBITDA of €164.4 million.
Pasta Division
The Pasta Division has closed an extraordinary half-year period, boosted by the excellent development of the fresh pasta business, strong Garofalo sales underpinned by significant investment in advertising, along with the suppression of prices of energy and certain auxiliary raw materials, mitigating the high cost of other main ingredients of the fresh pasta business, such as potato flakes.
Olivieri performed especially well in Canada, with double-digit growth, way above the growth rate of the category, with increases of over 20% in gnocchi, successful launchings of Lustucru: Gnocchi Star and Gnocchini, and a significant rise in Bertagni sales in the USA and Spain.
The Division posted a turnover of €347.2 million and an adjusted EBITDA of €54.5 million.
