Ebro Foods (EBRO) Q2 2024 earnings summary

Executive summary

• Achieved strong growth in H1 2024, with both rice and pasta divisions outperforming their markets and consolidated sales up 1.4% to €1,580.1 million.

• Net profit attributable to the parent increased 16.9% to €108.9 million, driven by improved operational performance and margin expansion, especially in the pasta segment.

• Investments in capacity expansion, product innovation, and brand development continued, supported by significant advertising and extraordinary cash inflows from real estate sales.

• H1 earnings surpassed last year's record levels, reflecting strong strategic execution and business momentum.

• Recovery in Spanish sowings and capacity expansion in microwave and gnocchi plants expected to further support growth.

Financial highlights

• Consolidated revenue reached €1,580.1 million, up 1.4% year-over-year.

• EBITDA-A increased 8.1% to €210.5 million; margin rose to 13.3%.

• Net profit grew 16.9% to €108.9 million.

• Net debt at €572.5 million, slightly higher than year-end 2023 due to dividend payments totaling €114 million.

• Capex investments totaled €68.5 million in H1 2024.

Outlook and guidance

• 24/25 harvest expected to return to near-normal after years of water shortages, with rainfall in March supporting sowing in southern Spain.

• Capacity expansions in North America and Europe to be completed in H2 2024, especially in microwave and gnocchi production.

• Real estate sales projected to generate extraordinary cash of approximately €30 million in 2024, with €4.4 million received in June and €23.5 million pending from a French warehouse sale.

• Effective tax rate for 2024 estimated around 25%.