Ebro Puleva: Net turnover down 6% in H1/2010

Madrid / ES. (epg) Spanish Ebro Puleva Group posted a net profit in continuing operations of 55,4 million EUR during the first half of 2010; up 30,5 percent on the same period of 2009.

Net turnover was down six percent year on year to 848,8 million EUR, dragged down by the falling prices of raw materials, which have been passed on in retail prices. In keeping with the strategy of building value around our brands, investment in advertising was raised nine percent year on year to 45 million EUR.

Major growth was also recorded in the Group´s operating figures. Ebitda or gross operating profit grew 15,6 percent to 131,8 million EUR. Ebit or net operating profit totalled 104 million EUR; up 19 percent on that recorded for the first six months of 2009.

The growth trend begun eleven quarters ago continues

Thanks to constant commitment to innovation, rewarded with the successful launching of new products, the synergies achieved between the rice and pasta businesses, optimisation of resources and costs, a stable raw materials scenario and the balanced geographical diversification of the company, Ebro Puleva has managed to maintain the upward trend we began eleven quarters ago, with a cumulative growth of over 50 percent in Ebitda since the first half of 2007. After shedding the dairy business, 51 percent of the Ebro Ebitda is generated in North America, 48 percent in Europe, seven percent of which corresponds to Spain, and one percent in the rest of the world. By business areas, 41 percent is from the rice business and the remaining 59 percent from the pasta division.

The final debt of the company for the period was 537 million EUR; 7,6 percent less than in the first half of 2009, even without recording any income from the sale of the dairy business. The optimum balance sheet that Ebro will have on completing the sale of that division, with practically no debt, puts the company in an excellent position to embark in the near future on a new stage of inorganic growth.

Core businesses

Rice: This division has achieved satisfactory results during the period, bolstered by the strength of its brands, with a six percent growth in the volume of sales in USA and a 28 percent growth in market share in France, while at the same time consolidating the division´ microwave products, which have cornered 20 percent of this segment in the USA in just three years. The division turnover was 404 million EUR and Ebitda rose one percent to 58,6 million EUR.

Pasta: The constant renewal of our product with high value added products, the remarkable growth of our sales and market shares in France and the success of our latest launchings in both Europe and USA and Canada took the division Ebitda up 27,5 percent to 78,6 million EUR. The lowering of raw material prices affected our turnover, which slid 3,6 percent year on year to 447 million EUR.