Madrid, 28 October 2020. Turnover grew by 19.2% over the quarter to €2,425.3 million, boosted by the good performance of our premium brands in rice and pasta and the strength of our production capacity, enabling us to meet demand.
EBITDA-A rose to €327.1 million, 38% more than in 2019, while our CAGR rose by 25% over the past 3 years.
Net Profit grew 27.8% to €146.7 million. Year on year, the growth was just 9% owing to the unfavourable comparison with the same quarter in 2019, when an extraordinary gain of €15.3 million was generated on the sale of Alimentation Santé.
Net debt totalled €898.2 million, €101.6 million less than at year-end 2019. This includes all dividend payments (April, June and October), in a sum of €87 million.
Core businesses
Rice
Commodity prices rose more than we had been expecting on the North American market due to three factors: adverse weather conditions, the effects of hurricane Laura and high demand from South America. Similarly, in Europe the forecasts of a smaller harvest due to the storms and flooding in Italy and salinity problems in Spain are also pushing prices up.
The increased demand due to the COVID situation has continued affecting the division sales, especially in September. In July and August, consumption was more or less in line with previous years.
The performance of our brands has been highly satisfactory, with growth rates of over 20%. Even higher growth was achieved by Tilda in the UK and Taureau Ailé in France.
Division turnover was €1,366.1 million and EBITDA-A reached €177.6 million.
Pasta
Stability returned to the commodity markets thanks to the arrival of the North American harvest, with excellent quality and quantity.
Division sales, especially in the North American business, continued to reflect the growth in demand deriving from the COVID situation, which we have been able to meet amply thanks to the work done to optimise the capacity of our production plants. Growth was somewhat slower in Europe as the Garofalo and Panzani plants were operating closer to full capacity.
Division turnover was €1,120.8 million and EBITDA-A reached €159.2 million.
Year-end outlook
Ebro anticipates a FY2020 turnover of €3,150-3,200 million, with an estimated EBITDA-A within a range of €422-432 million.
We endorse the sustainability of our model
We have closed a quarter in which, although without lockdowns, the effects of the pandemic have continued to be visible, causing strong peaks in demand at specific times in each of our business divisions.
Against this backdrop, the Group has amply responded, once again, to the needs of its customers and consumers, thanks to the strength and sustainability of our business model, built on the following pillars:
- Our sound production capacity and adequate organisation of production
- A broad, balanced product portfolio
- Correct diversification of our supply chain
- Diligence in decision-making
- And the firm commitment of our personnel
The consolidated earnings in these first nine months and the estimates for year-end also show that we have made the right strategic decisions, such as the acquisition of Tilda, which had already exceeded its FY2019 turnover by the end of September, and the good positioning of our brands, which have increased their market share in most of the countries in which we operate.
