• EBRO 2013 / PDF
  • FINANCIAL INFORMATION
  • SOCIAL RESPONSIBILITY
  • CORPORATE GOVERNANCE
  • ESP
  • ENG
  • CHAIRMAN’S STATEMENT
  • >Download PDF

    Dear stakeholders:

    As you all know, in 2013 we have started to see signs that we might be pulling out of the economic crisis that commenced in 2008. The recession in the eurozone is slowly remitting and the consumer confidence and industrial production indexes closed the year in positive figures, so although growth is still weak the climate is positive.

    The situation is also favourable in the USA. Although household income has dropped, there has been a clear improvement in the economic figures (+1.9% annual GDP), including employment, confidence and housing sales.

    But this does not mean that the changes observed in our consumers are about to disappear. Those changes appear to be firmly established and consumer streamlining is more than likely here to stay. In general, consumers buy less and more cheaply and are only willing to pay for things that give them a differential value. Consequently, the search for differentiation values is a key element in our company’s growth strategy and in this regard R+D+I was once again a fundamental tool for Ebro in 2013.

    In the commodities area, there was an upturn on the grain markets as from July. The announcement of a surplus corn market and a good soft wheat harvest kept prices low up to the end of the year. Durum wheat, with a good harvest and healthy stock levels in Canada, which produces approximately 60% of the world trade of this cereal, also helped to keep prices low. Rice prices remained low with record world harvests and abundant world stock, attentive to the new attempts by Thailand to reduce its government stock. Within this global scenario there are a few especially important exceptions which have represented greater challenges for the Ebro Group during the year, namely the devastating drought in Texas, pressure on domestic prices in the USA, Basmati prices and the shortage of rice at competitive prices from Spain.

    The rice division had a bittersweet year, since although the evolution of its brands was satisfactory in both Europe and the United States, with growth in market shares and excellent shelf positioning, it was hard hit by several external factors, as a result of which the satisfactory performance of its brands has not been reflected in its results. These factors were mainly the mass default of basmati supply contracts in India, continuation of the severe drought in Texas and the impaired profit margins in Morocco owing to large-scale smuggling of rice into the country. We have worked hard to implement measures that will help us to minimise the impact of these factors on our future business development.

    The pasta division, in contrast, had a good year, with stable durum wheat prices and the first signs of benefits deriving from the change of strategy implemented in the United States in the second half of 2012. In Europe, in a scenario strongly influenced by the growth of private label brands and constant promotions by our rivals, our brands have managed to maintain both market shares and profitability. In the United States, margins have begun to pick up and new gluten-free products and sauces launched in Canada went down well with consumers.

    On an international level, we brought to fruition three inorganic growth projects. The largest project was the acquisition of Olivieri, leader in fresh pasta and sauces in Canada, with market shares of 51% and 41%, respectively. This operation was strategically important because it gave us a foothold in the fresh foods segment in Canada through the leading brand and, consequently, confirmed our leadership in all the categories in which we operate in that country.

    Another project was the purchase of a modern rice plant in India with a processing capacity of over 100,000 tonnes a year. Through this purchase we will become firmly established in the largest basmati rice producing region in the world, guaranteeing supplies of this variety for all our subsidiaries. At the same time, we will enter a vast domestic market with high growth rates, where we will be able to progressively introduce our broad array of sauces, rice and pasta products.

    Finally, we also bought a 25% stake in the Italian company Riso Scotti, leader of risotto rice in Italy. With this investment of €18 million we aim to begin a project for the international development of the risotto market. Scotti is the most prestigious brand in this area, with the added “authentication” feature of being made in Italy. Italian food has enormous potential and Ebro has put its money on its globalisation capacity.

    But it hasn’t all been growth. Within our current Strategic Plan, we also announced that we were pulling out of our pasta business in Germany, as we found that the German market neither fitted in with the Group’s strategic target nor matched the yield achieved by our other businesses.

    On the stock market, the value of the EBRO share rose by 17.9% over the year. In the same period Ibex 35 rose 21.4%, Ibex Med 52%, Ibex Small 44.2% and Eurostoxx Food and Beverage, benchmark for European food sector shares, just 7%. We could say, therefore, that EBRO had a rather moderate stock market performance in comparison with its benchmark indexes.

    In short, although the consolidated results were dented by all the external factors that have hampered the rice division, the overall balance and evolution of Ebro during 2013 were very positive, since in a sector increasingly dominated by private label, its brands have hung on to their leading positions through intense work in innovation, commercial and marketing aspects.

    I invite you to consult the Report and read about the company’s performance in all its areas of activity during 2013.

     

    Antonio Hernández Callejas
    Ebro Foods Chairman

  • OUR CORE BUSINESSES:
  • The core businesses of
    Ebro Foods are rice and pasta.
    Within these businesses, Ebro develops its
    business model using the different technologies
    available: dry, fresh, pre-cooked and frozen.

    >Download PDF

    RICE
    PASTA
  • 1. RICE
    • RICE DIVISION
    • This is the business area in which the Group is world leader. The business began in Spain back in 1950 and as from 1986 it began its international expansion by purchasing leading brands and companies in Europe, USA and Canada. Now also present in Africa and Asia, the division has an extensive portfolio of leading brands and products. This division accounts for 54% of Ebro’s total sales.

    • GEOGRAPHICAL AREAS
    • EUROPE AMERICA AFRICA ASIA

       

    • PRINCIPAL BRANDS AND MARKET POSITIONS
      • America
      •  

         

         

        Bahamas
        Blue Ribbon®
        Mahatma®

        Belize
        Mahatma®

        Bermudas
        Carolina®
        Minute®

        Canada
        Minute®

        Curaçao
        Blue Ribbon®
        Mahatma®

        Jamaica
        Blue Ribbon®
        Mahatma®

        Mexico
        SOS®

        Panama
        Blue Ribbon®
        Mahatma®

        Peru
        Mahatma®
        Minute®

        Puerto Rico
        Cinta azul®
        El Mago®
        Mahatma®
        Sello Rojo®
        SOS®

        St Martin
        Mahatma®

        St Lucia
        Mahatma®

        United States
        Adolphus®
        Blue Ribbon®
        Carolina®
        Comet®
        Gourmet House®
        Mahatma®
        Minute®
        River®
        Success Rice®
        Watermaid®
        Wonder®

        Uruguay
        Minute®
        Success Rice®

        SIGNIFICANT MARKET POSITION SHORT GRAIN RICE
        CANADA 1
        PUERTO RICO 3
        UNITED STATES 1
      • Europe
      •  

         

         

        Austria
        Königs®
        Oryza®
        Reis-fit®

        Belgium
        Bosto®
        Boss®
        Casi®

        Czech Republic
        SOS®

        Denmark
        Oryza®
        Reis-fit®

        Estonia
        Bosto®

        Finland
        Risella®

        France
        Lustucru®
        Taureau Ailé®

        Germany
        Oryza®
        Reis-fit®

        Hungary
        Riceland®
        SOS®

        Iceland
        River®

        Lithuania
        Bosto®
        Oryza®

        Netherlands
        Lassie®

        Poland
        SOS®

        Portugal
        La Cigala®
        Saludaes®

        Romania
        Panzani®
        SOS®

        Slovakia
        SOS®

        Spain
        Arroz Rocío®
        Brillante®
        La Cigala®
        La Fallera®
        Panzani®
        SOS®
        Sundari®

        Switzerland
        Oryza®

        United Kingdom
        Chinatown®
        Double Phoenix®
        Gourmet House®
        Peacock®
        Success®
        Sunrich®

        Ukraine
        Bosto®
        Oryza®

        SIGNIFICANT MARKET POSITION SHORT GRAIN RICE RETAIL CHANNEL
        FRANCE 1  
        HUNGARY 1  
        PORTUGAL 1  
        SLOVAKIA 1 3
        SPAIN 1  
      • Africa
      •  

         

         

        Angola
        Arroz Cigala®

        Algeria
        SOS®

        Ivory Coast
        SOS®

        Egypt
        Herba®
        King of Rice®
        Shahraman®

        Libya
        Abu Bint®
        Herba®
        SOS®

        Morocco
        Arroz Cigala®
        Cup Riz®
        Miura®

        Mozambique
        Arroz Cigala®
        Cup Riz®
        Miura®

        Senegal
        SOS®

        Sudan
        Abu Bint®

        SIGNIFICANT MARKET POSITION SHORT GRAIN RICE
        ANGOLA 3
        ALGERIA 2V
        LIBYA LY
        MOROCCO 1
        V: Market position by value         LY: Control retail market SOS, Herba y Abu Bint
      • Asia
      •  

         

         

        Israel
        Arroz Cigala®

        Jordania
        Abu Bint®

        Kuwait
        SOS®

        Saudi Arabia
        Abu Bint®

         

         

        Sirya
        SOS®

        United Arab
        Emirates

        Abu Bint®
        SOS®

        Yemen
        Abu Bint®

        SIGNIFICANT MARKET POSITION SHORT GRAIN RICE
        JORDAN 1PARB
        SAUDI ARABIA 1PARB
        SIRYA 2
        PARB: Parboiled rice
  • 2. PASTA, SAUCES AND OTHERS
    • PASTA DIVISION
    • This division is represented by the companies New World Pasta (leader in USA and Canada) and Panzani (no. 1 in France in the dry and fresh pasta sectors, sauces, couscous and semolina). Apart from these countries, the Group brands are also present in other geographical areas, such as Belgium, Hungary, United Kingdom, Algeria, United Arab Emirates, Czech Republic and Russia, so in just eight years Ebro has positioned itself as the second pasta manufacturer in the world. This division currently accounts for 46% of the Group’s total business.

    • GEOGRAPHICAL AREAS
    • AMERICA EUROPE AFRICA ASIA

       

    • PRINCIPAL BRANDS AND MARKET POSITIONS
      • America
      •  

         

         

        Antigua
        Prince®

        Bahamas
        Ronzoni®

        Belize
        Ronzoni®

        Bermudas
        Catelli®
        Ronzoni®

        Canada
        Catelli®
        Catelly Healthy Harvest®
        Giovanni Panzani®
        Lancia®
        Splendor®
        Ronzoni®
        Olivieri®

        Curaçao
        Ronzoni®

        Jamaica
        Ronzoni®

        Mexico
        Panzani®

        Panama
        Creamette®
        Ronzoni®

        Peru
        Ronzoni®

        Puerto Rico
        Prince®
        Ronzoni®

        St Martin
        Ronzoni®

        St Lucia
        Ronzoni®

        Trinidad & Tobago
        Ronzoni®

        Uruguay
        Ronzoni®

        United States
        American Beauty®
        Creamette®
        Light´n´fluffy®
        No Yolks®
        Prince®
        P&R®
        Ronzoni Healthy Harvest®
        Ronzoni®
        San Giorgio®
        Skinner®
        Wacky Mac®

        SIGNIFICANT MARKET POSITION PASTA
        CANADA 1
        UNITED STATES 1
      • Europe
      •  

         

         

        Belgium
        Panzani®

        Czech Republic
        Panzani®

        Estonia
        Panzani®

        France
        Ferrero®
        Lustucru®
        Panzani®
        Regia®

         

        Hungary
        Panzani®

        Romania
        Panzani®

        Slovakia
        Panzani®

        Spain
        Ferrero®

        SIGNIFICANT MARKET POSITION DRY PASTA FRESH PASTA SAUCES FRESH GNOCCHI
        BELGIUM 2      
        CZECH REPUBLIC 1   1  
        ESTONIA 1      
        FRANCE 1 1 1 1
        ROMANIA 5   1  
      • Africa / Asia
      •  

         

         

        AFRICA

        Angola
        Panzani®

        Algeria
        Lustucru®
        Panzani®

        Cameroon
        Panzani®

        Congo
        Panzani®

        Gabón
        Panzani®

        Ivory Coast
        Panzani®

        Libya
        Panzani®

        Morocco
        Panzani®

        Senegal
        Panzani®

        ASIA

        Bahrain
        Ronzoni®

        Indonesia
        Ronzoni®
        San Giorgio®

        Israel
        No Yolks®
        Wacky Mac®

        Jordan
        Ronzoni®

        Korea
        Ronzoni®
        San Giorgio®

        Kuwait
        Ronzoni®

        Lebanon
        Panzani®
        Ronzoni®

        Malaysia
        Ronzoni®
        San Giorgio®

        Qatar
        Panzani®

        Saudi Arabia
        Panzani®
        Ronzoni®
        San Giorgio®

        United Arab Emirates
        Panzani®

        Yemen
        Panzani®

        SIGNIFICANT MARKET POSITION PASTA SECA SALSAS
        ANTILLES 1* 1
        CAMEROON 3*  
        CONGO 1*  
        GABON 1*  
        IVORY COAST 1*  
        KUWAIT 4*  
        LEBANON 2*  
        MAURITIUS 1*  
        MOROCCO 2*  
        QATAR 3*  
        SENEGAL 1*  
        SAUDI ARABIA 3*  
        UNITED ARAB EMIRATES 3*  
        *Imported
  • FINANCIAL HIGLIGHTS
    • DISTRIBUTION OF TURNOVER AND EBITDA BY DIVISIONS
    • EBITDA DISTRIBUTION BY BUSINESS UNITS (%)

       

      47%
      53%

       

      SALES BY BUSINESS UNITS (%)

       

      54%
      46%

       

    • DISTRIBUTION OF TURNOVER AND EBITDA BY GEOGRAPHICAL AREAS
    • EBITDA DISTRIBUTION BY GEOGRAPHICAL AREAS (%)

       

      8.2%
      42.4%
      48.6%
      0.4%
      0.4%

       

      SALES BY GEOGRAPHICAL AREAS (%)

       

      7.3%
      48.4%
      38.3%
      2%
      2.8%
      0.4%

       

    • EBRO FOODS IN FIGURES
    • CONSOLIDATED FIGURES 2011 2012 2012-2011 2013 2013-2012 CAGR 2013-2011
      Net turnover 1,736,686 1,981,130 14.1% 1,956,647 (1.2%) 6.1%
      EBITDA 273,642 299,226 9.3% 282,392 (5.6%) 1.6%
      EBIT 226,914 244,319 7.7% 226,356 (7.4%) (0.1%)
      Operating profit 229,929 255,575 11.2% 212,907 (16.7%) (3.8%)
      Consolidated earnings (Continuing operations) 166,666 160,974 (0.4%) 141,489 (12.1%) (6.4%)
      Net earnings on discontinued operations (10,023) (2,523) (1%) (7,507) 197.5% (13.5%)
      Net profit 151,542 158,592 4.7% 132,759 (16.3%) (6.4%)
      Average current assets 315,694 402,403 (27.5%) 420,517 (4.5%)  
      Capital employed 1,007,686 1,212,424 (20.3%) 1,286,515 (6.1%)  
      ROCE (1) 22.2 20.0   17.7    
      Capex (2) 66,596 52,930 (20.5%) 61,308 15.8%  
      Average headcount 4,743 4,741 0.0% 4,665 (1.6%)  
      >> Thousand of euro
      (1) ROCE = Operating income CAGR last 12 months / (intangible assets - property, plant & equipment - current assets))
      (2) Capex as cash out flow from investing activities
      STOCK MARKET HIGHLIGHTS 2011 2012 2012-2011 2013 2013-2012  
      Number of shares 153,865,392 153,865,392 0.0% 153,865,392 0.0%  
      Market capitalisation at year-end 2,207,968 2,307,981 4.5% 2,621,097 13.6%  
      EPS 0.98 1.03 4.7% 0.86 (16.3%)  
      Dividend per share 0.87 0.63 (27.6%) 0.60 (4.8%)  
      Theoretical book value per share 10.32 11.00 6.6% 11.09 0.8%  
        2011 2012 2012-2011 2013 2013-2012  
      Equity 1,587,298 1,692,209 (6.6%) 1,705,757 0.8%  
      Net Debt 390,073 244,804 37.2% 338,291 (38.2%)  
      Average Debt 139,157 294,114   260,820    
      Leverage (3) 0.09 0.17   0.15    
      Total Assets 2,710,608 2,731,812 0.8% 2,772,680 1.5%  
      (3) Ratio of average net financial debt with cost to equity (excluding minority interests)


       

      RICE BUSINESS 2011 2012 2012-2011 2013 2013-2012 CAGR 2013-2011
      Net turnover 920,752 1,105,738 20.1% 1,090,459 (1.4%) 8.8%
      EBITDA 135,953 161,035 18.4% 137,627 (14.5%) 0.6%
      EBIT 113,698 133,927 17.8% 110,156 (17.7%) (1.6%)
      Operating profit 103,056 103,021 26.2% 102,785 (20.9%) (0.1%)
                   
      Average current assets 231,686 298,822 (29.0%) 329,938 (10.4%)  
      Capital employed 582,158 729,320 (25.3%) 751,292 (3.0%)  
      ROCE            
      Capex 26,950 19,105 (29.1%) 21,186 10.9%  
      >> Thousand of euro
      PASTA BUSINESS 2011 2012 2012-2011 2013 2013-2012 CAGR 2013-2011
      Net turnover 860,872 920,693 6.9% 915,120 (0.6%) 3.1%
      EBITDA 144,993 145,246 0.2% 152,955 (5.3%) 2.7%
      EBIT 121,956 118,884 (2.5%) 125,725 5.8% 1.5%
      Operating profit 118,653 110,185 (7.1%) 115,283 4.6% (1.4%)
                   
      Average current assets 69,173 90,115 (30.3%) 76,369 15.3%  
      Capital employed 456,917 520,948 (14.0%) 508,429 2.4%  
      ROCE 26.7 22.4   25.7    
      Capex 37,093 33,040 (10.9%) 38,720 17,2%  
      >> Thousand of euro

      > PDF

  • ANALYSIS OF 2013
  • >Download PDF

  • SHARE PERFORMANCE
  • >Download PDF

PASEO DE LA CASTELLANA, 20 - 28046 MADRID / T. +34 917 245 250 / COMUNICACION@EBROFOODS.ES / WWW.EBROFOODS.ES