· The consolidated results posted for the first nine months, with significant increases in yield and net profit, confirm the extraordinary trend begun by the company in the fourth quarter of 2008, proving the strength of the Ebro Puleva Group¿s business model.
· The EBITDA rose to 217 million euro, up 19% year on year.
· Net turnover totalled 1,665 million euro.
· Debt was reduced by 56%, to 545 million euro.
· The launching of new products led the group to increase its investment in advertising to 73.5 million euro, 11% more than in the same period of last year.
· For the full year, Ebro Puleva expects to post an EBITDA of 306 million euro, equalling the figure obtained in 2007, when the sugar business was still part of the consolidated group. The Net Profit will grow by more than 36%, to over 177 million euro.
Madrid, 29 October 2009. The Ebro Puleva Group chalked up a net profit of 134.7 million euro in the first nine months of 2009, representing a year-on-year growth of 45%.
The operating profits also recorded a strong growth. The EBITDA, or gross operating profit, grew by 19% to 217 million euro, while the EBIT, or net operating profit, rose to 166 million euro, up 28% on the same period of 2008.
The net turnover stood at 1,665 million euro, 3% down on the first nine months of last year.
With this generation of operating profit, a significant reduction in working capital and the proceeds of the sale of the sugar business, the company reduced its debt by 56% year on year to 545 million euro.
In keeping with the strategy of building value around the company¿s brands, investment in advertising was increased by 11% year on year, totalling 73.5 million euro.
Core businesses
Rice
In a year marked by the absence of trading, the division achieved a positive evolution based on the satisfactory progress of the exclusively brand activity. The profit margins of the division have been slightly dented as stock purchased at higher-than-current prices is used. The division posts a turnover of 655 million euro and an EBITDA of 85.6 million euro, after increasing investment in advertising by 4 million euro.
Pasta
As a result of the synergies generated, the reduced costs of production, the logistics savings and the success of the high value-added products, the division EBITDA grew by 41% to 95 million euro, despite having invested 8.4% more in advertising. The lowering of raw material prices has had a minor effect on sales revenue, totalling 692 million euro, 3% less than in the same period of last year.
Dairy
The constant launching of new products and continuous segmentation of markets by Puleva is being rewarded by consumer loyalty to our high value-added products. It has thus been able to steer clear of the trend of low prices set by the private brands on the market. This, together with measures implemented in previous years to save and optimise costs, has enabled the division to complete an extraordinary third quarter with an EBITDA of 47 million euro, up 42% year on year, and a turnover of 330 million euro.
Projections for 2009
Ebro Puleva expects to post a turnover of 2,207 million euro for the full year 2009. The EBITDA will be 306 million euro, 12% up on 2008, equalling that obtained in 2007 when the sugar business was still consolidated. The Net Profit will grow by more than 36% to over 177 million euro in 2009.
Reaping the benefits of an effective Strategic Plan
The consolidated results for the third quarter, with significant increases in yield and net profit, confirm the extraordinary development of the company throughout 2009, showing the true strength of the Ebro Puleva Group¿s business model.
For the full year, we anticipate a result equal to that of 2007, despite having sold off the sugar business, halved our debt and paid out 133.6 million euro to our shareholders in dividends since then.
These results also reflect the correct decisions made within the Strategic Plan now drawing to a close, with growth of the order of 36% in EBITDA and 96% in Net Profit during the comparable periods of 2007 and 2009.
