Ebro Puleva: Net profit growth of 35% in 2009

Madrid / ES. (epg) The Spanish Ebro Puleva Group chalked up a net profit of 176,5 million EUR in 2009, representing a 35 percent year-on-year growth. Operating income also grew steadily. The Ebitda, or gross operating profit, grew by 13,5 percent to 308 million EUR, while the Ebit, or net operating profit, rose to 240 million EUR, up 19 percent year on year.

The Group recorded a net turnover of 2’198 million EUR, seven percent down year on year, owing especially to the slide in raw material prices, which led to lower retail prices of our products.

With the funds generated from operations and the proceeds from the sale of the sugar business, the company reduced its year-end debt to 557 million EUR, 47 percent less than that recorded in 2008, after distributing 144,7 million EUR among our shareholders in the form of dividends.

In keeping with the strategy of building value around the brands, investment in advertising was increased by eight percent year on year to 93 million EUR.

The consolidated results of the year, with significant growth in yield and net profit, confirms the extraordinary development of the company over 2009, demonstrating the true strength of the Ebro Puleva business model – the company said in its press release.

In addition to improving on the earnings posted in 2007, when the sugar business was still consolidated, the company has cut its debt by 47 percent, bringing the net debt / Ebitda ratio down to 1,8x and leverage to 44 percent, an extraordinary financial position to embark on new growth channels.

Core businesses

Rice: In a year marked by the absence of trading operations, the division has completed a highly satisfactory year thanks to the excellent performance of its brands, with sales revenues of 836 million EUR and Ebitda of 118,6 million EUR, after stepping up investment in advertising by four million EUR.

Pasta: Through the generation of synergies, reduction of costs of production, logistics savings and the success of the high value-added products, the division increased its Ebitda by 29 percent to 137 million EUR. The lower raw material prices slightly dented sales revenues, which slid six percent year on year to 928 million EUR.

Dairy: In a year of unfaltering double-digit growth of the infant nutrition segment and the constant launching of new high value added products, the division has completed an outstanding 2009 with Ebitda of 67 million EUR, up 33,8 percent year on year, and a turnover of 444 million EUR.