- We closed a complicated quarter with a good operating performance and an improved net profit, but with a smaller operating margin, among other factors, due to the low prices of the rice and the spike in logistics costs and the cost of auxiliary raw materials deriving from the Middle East conflict.
- Against this backdrop, the Group has continued promoting its brands, backing new launches and the growth of the microwave and ready-to-serve categories with investments of around €26 million in advertising.
- In the financial aspect, we considerably reduced our net debt, bringing it down by €140 million year on year to €459.9 million, and cut our working capital by €54 million.
In a highly competitive market owing to the low rice prices, the weak US dollar and the spike in the costs of logistics and certain auxiliary materials due to the war in the Middle East, the Group maintained a good level of commercial activity thanks to our high service rate and consumer confidence and support, while boosting our financial position by significantly reducing our net debt. Looking forward, the Group trusts its ability -already proved in other adverse situations- to gradually reverse the current pressures.
In the United States, the company is attentive to the evolution of the tariff policy and the effects of the recent decision adopted by the Supreme Court, which opens the door to future refunds of tariffs paid (approx. US$18 million).
Net Profit is up 5.4% over the first three months of 2025 to €52.9 million, thanks to the improved financial metrics.
The Group’s Turnover stands at €755.5 million, down 4.6% year on year, largely due to the effect of the USD exchange rate in Riviana (€29 million) and the scenario of low rice prices.
Adjusted EBITDA is down 10.8% year on year to €100 million, affected by the factors explained above.
And our Net Debt has been brought down by €140 million to €459.9 million, accompanied by a €54 million reduction in working capital.
Core business results
Rice Division
The Rice Division has been under considerable pressure during the quarter due to the highly competitive scenario, the weak raw material prices, the liquidation of expensive stock and the inflation of logistics costs due to the Middle East conflict.
In raw materials, we saw the first signs of an upturn in rice prices, affected by the difficulties encountered in fertilizer supplies, a potentially weaker monsoon in Southeast Asia, a smaller area sown in the United States owing to the low prices and more costly inputs, and weather forecasts that augur a possible water shortage in significant rice-producing regions such as Australia and California. In Spain, the prospect of imports from EBA countries is causing growing unease and discontent among growers, who are requesting the application of tariffs and safeguard clauses, strongly backed by the Ebro Group.
As far as business development is concerned, microwave products performed well during the quarter, with growth rates of 8% in Spain, 12% and 10% in USA and Canada, respectively, and in France, where we already have a market share of 21%.
All in all, the Division posted a turnover of €576 million an adjusted EBITDA of €79.3 million.
Pasta Division
The Pasta Division began the year in an environment of particularly strong competition and lower returns than last year due to the combined effect of the US tariffs and the unfavourable evolution of the exchange rate, which dented the sales margins of Garofalo and Bertagni in that market.
Our performance in France has been good, with growth driven mainly by gnocchi and one-pot pasta launches progressing according to plan. In Spain, gnocchi in the pan achieved a very promising start, and in Canada sales in this category are also progressing at a good rate.
Garofalo maintains a steady pace, with good performance in the Spanish market, a positive acceptance of its new high-protein range and a favourable evolution in sauces.
All in all, the Division posted a turnover of €180.6 million and an adjusted EBITDA of €25 million.