Ebro Puleva: turnover down, profit up in Q1/2010

Madrid / ES. (epg) Spanish Ebro Puleva Group posted a net profit of 40 million EUR for the first three months of 2010, 24 percent more than in the first quarter of 2009. The net turnover was 428 million EUR, eight percent down year on year as a result especially of the lowering of raw material prices, which was passed on in the form of lower retail prices.

In line with the strategy of building value around brands, the company´s investment in advertising was stepped up by nine percent year on year to 24 million EUR.

Major growth was also visible in the operating figures. Ebitda, or gross operating profit, was up 22 percent to 67 million EUR. Ebit, or net operating profit, stood at 53,6 million EUR; 29 percent more than that recorded in the first quarter of 2009.

Meal Solutions: a sound, effective model

The consolidated first quarter results reveal once again the soundness and stability of Ebro Puleva´s Meal Solutions model, which not only continues increasing its yield, now at over 20 percent, but has also equalled the earnings obtained in the same period of 2009 when the company was still consolidating the dairy business, which is proof of the excellent performance of the rice and pasta divisions.

Even though the company has not yet received the price of the dairy business, pending clearance by the European antitrust authorities, the company´s final debt is just 546 million EUR, down 53 percent on that recorded in the first three months of 2009. The optimum balance sheet that the Group will have once the sale of the dairy division is completed, practically debt-free, will put Ebro Puleva in an excellent position to begin shortly a new growth phase.

Core businesses

Rice: In a quarter marked by the start-up of the Memphis plant, which is already producing 100 percent of the Minute brand, the division has completed a highly satisfactory period, thanks to the outstanding performance of its brands, especially those of our North American subsidiary, which has increased its market share to 21,8 percent. The division has posted a turnover of 198 million EUR and Ebitda of 28,5 million EUR.

Pasta: Boosted by the generation of synergies, the reduction of costs of production, logistics savings and the unyielding growth of high value-added products, the division Ebitda has grown by 46 percent to 42 million EUR. The lower raw material prices have affected turnover, which is down four percent year on year at 231 million EUR.