· The consolidated earnings in the first nine months of the year confirm the success of the company¿s strategy, reinforcing its positions on the market and maintaining two-digit growth, bolstered by the strength of its brands, the constant implementation of cost-saving measures, the growing investment in advertising and innovation, the successful launching of new products and the generation of synergies between the different businesses of the Group.
· The Group records an EBITDA of 197.5 million euro, up 15% year on year.
· Net turnover rose to 1,254 million euro.
· Investment in advertising was increased by 5.4%, to 65 million euro, to back the launching of new products.
· After receiving in September 555 million euro of the 630 million euro established for the sale of the dairy division, the company is 84 million euro in the black and will foreseeably close the year with a net debt of 70 million euro, including the payment of extraordinary dividends in April and July 2011 (46 million euro) and advance tax of 120 million euro on the capital gain produced on the sale of Puleva.
· For the full year, Ebro expects to record an EBITDA of 271 million euro, representing a year-on-year growth of 11%. The Net Profit will increase by 120% to over 387 million euro.
Madrid, 27 October 2010. Ebro chalked up a net profit of 346 million euro in the first nine months of 2010, a year-on-year growth of 157%.
Its net turnover for the same period was 1,254 million euro, 6.6% lower than that posted in the third quarter of 2009, owing to the lowering of raw material prices, which was passed on in lower selling prices.
In keeping with our strategy of building value around our brands, the group increased its investment to 65 million euro, up 5.4% year on year.
The operating profits also recorded significant growth. The Group EBITDA, or gross operating profit, grew by 15% to 197.5 million euro, while its EBIT, or net operating profit, totalled 157.5 million euro, 19.6% more than that recorded in the first nine months of 2009.
After receiving in September 555 million euro of the 630 million euro established for the sale of the dairy division, the company is 84 million euro in the black and will foreseeably close the year with a net debt of 70 million euro, including the payment of extraordinary dividends in April and July 2011 (46 million euro) and advance tax of 120 million euro on the capital gain produced on the sale of Puleva.
Core businesses
Rice
This division has completed a satisfactory evolution over the first nine months, bolstered by the excellent performance of its brands (sales grew by 6% in volume in the USA and their market share rose to 28% in France), and the consolidation of microwave products, which have cornered 20% of this segment of the US market in just three years.
The division turnover is 602 million euroand its EBITDA has grown by 2.5% to 88 million euro.
Pasta
The constant renewal of our high added value product portfolio, the extraordinary growth of our sales and market shares in France and the enormous success of our latest launchings in Europe, USA and Canada have pushed the division EBITDA up 24% to 117.6 million euro. The success of the latest innovation in Panzani, the ¿Lunch Box¿, has been particularly resounding and this product already accounts for 6.4% of the tonnes of fresh pasta sold by our French subsidiary.
The lowering of raw material prices has affected turnover, which is down 3.3% year on year at 669 million euro.
Projections for 2010
Ebro forecasts a turnover of 1,685 million euro for 2010, with EBITDA up 11% year on year at 271 million euro and Net Profit up 120% to over 387 million euro in 2010.
A sound management strategy for our businesses
The consolidated earnings for the first nine months of the year confirm the success of the company¿s strategy, reinforcing its positions on the market and maintaining two-digit growth, bolstered by the strength of its brands, the constant implementation of cost-saving measures, the growing investment in advertising and innovation, the successful launching of new products and the generation of synergies between the different businesses of the Group.
After three years of major investments and divestments, Ebro now has a healthy financial position and an optimum cash position to embark on its Strategic Plan 2010-2012, which focuses on opening up new markets and consolidating its international leadership in the rice and pasta sectors.
It has already taken the first step, announcing the signing of an agreement with Ricegrowers Limited ¿ SunRice granting Ebro exclusivity to purchase 100% of the capital of SunRice for USD600 million (approx. 425 million euro). This transaction, expected to be concluded by March 2011, will give Ebro a foothold in Australia, New Zealand, the Pacific Islands, Hong Kong, Singapore, Papua New Guinea and the Middle East.
