Growing at a good pace

Growing at a good pace

Madrid, 26 July 2023. The first half of the year turned out to be very satisfactory: not only have we maintained a very positive growth rate, but also our latest investments – both in CAPEX and inorganic – are producing the expected results. Our new production lines came into operation pushing up our sales of fresh pasta products and products with a higher value added, while the consolidation of InHarvest is starting to generate the anticipated synergies. Moreover, thanks to our constant investment in innovation and differentiation, our brands are still leaders in their different categories, in spite of the climate of household austerity.

Against this backdrop, all our financial metrics continued growing steadily throughout the period.

We posted a net turnover of €1,557.8 million, up 6.8% year on year, boosted mainly by the outstanding performance of the Rice Division.

The Adjusted EBITDA was 15.2% higher than in the first half of 2022, at €194.7 million, and one of the best EBITDA we have ever posted, outperforming even those obtained prior to the sale of the Dry Pasta Divisions in North America and France.

Net Profit totalled €93.1 million, with a year-on-year growth of 64.1%, far exceeding the other comparative results owing to the extraordinary loss of €20 million on the sale of the Roland Monterrat business in the second quarter of 2022.

Our Net Debt stands at €778.5 million, €15.8 million more than at year-end 2022. This includes dividend payments in April and June and accrual of the dividend payable in October, totalling €94.1 million (€6 million correspond to dividends from subsidiary), as well as CAPEX investments of €62.3 million.

Core business results

Rice Division

With regard to raw materials, no rice has been sown in Andalusia and the area sown in Extremadura has been reduced by 35%, which will adversely affect long-grain rice production in Spain. In contrast, the rain in California and Italy guarantees a normal harvest of Japonica rice, while the increase in rice sown in India and Pakistan should lead to greater harvests of Basmati, hence price adjustments in the final quarter of the year.

As regards the evolution of business, our brands remain strong, maintaining and even increasing their market shares in some of our principal countries. Microwave products are performing particularly well, especially in the USA.

The division posted a turnover of €1,230.8 million and an adjusted EBITDA of €160.4 million.

Pasta Division

With regard to raw materials, although the price of durum wheat has fallen over the period, the poor quality crop in Italy and the low expectations for the Canadian crop have pushed it back up in recent weeks. Nevertheless, in the fresh pasta business the cost of raw materials such as eggs, potatoes or milk has remained high.

In the Premium category, Garofalo is still growing in its principal markets, especially the USA and Spain; and in the fresh pasta segment Bertagni has improved its turnover, underpinned by the launching of a new range of products.

The division posted a turnover of €331.3 million and an adjusted EBITDA of €40.9 million.