In the first nine months of the year Deoleo obtained a comparable net profit of 16 million euros -excluding the positive impact of the debt restructuring-, compared to 26 in the same period of the previous year -excluding the positive impact of the restructuring of Debt-. Considering the extraordinary impact recorded in 2021, Deoleo’s net profit at the end of September amounted to 61 million.
EBITDA reached 38 million, 39% lower than that obtained in the same period of 2020, a year in which Deoleo’s results were favored by the increase in household consumption in the context of the health crisis. The gradual return to consumption habits after normalizing the health situation has led to a contraction in world olive oil consumption, especially in more mature markets, such as Italy or Spain, although it is a trend that is beginning to spread to other countries.
The company is carrying out a process of increasing sales prices in order to reduce the impact of the increase in the cost of raw materials, which, as the company anticipated, is also affecting oil consumption. According to the Ministry of Agriculture, prices at origin are currently 70% higher than at the beginning of the season that has just ended, although in recent months signs of stabilization have begun to be observed.
As a result of the progressive adjustment of consumer sales prices, Deoleo maintained its sales growth, which increased by 3.1% compared to the same period of the previous year, despite the slight drop in volumes sold. Additionally, ebitda was impacted by the increase in logistics costs worldwide and by the impact of 6 million associated with the evolution of exchange rates.
In the words of Ignacio Silva, president and CEO of the group: “Despite the complexity of the environment, Deoleo has once again shown evidence of its strengths. We anticipate the challenges that the sector was going to face this year due to the increase in price of raw materials and we take the necessary measures to minimize their impact, which have given us very positive results in key geographies. ”
In this sense, the market shares of the group’s brands continue to perform well, especially in the United States, where they grew 1.1%, while in Spain they remained stable.
Despite being a complex year, Deoleo managed to reduce its net financial debt by 10% and during the third quarter it was able to reverse the cash generation situation registered in the first half and go from a cash consumption of 4 million to one generation from 14 to the end of September 2021. The evolution of the business and the adequate management of working capital, together with the lower resources allocated to the payment of interest, as a result of the group’s new debt structure, are allowing it to generate cash and continue to reduce indebtedness net, which stands at 136 million compared to 150 at the end of the previous year.