Ebro Foods (EBRO) Q2 2024 earnings summary

Executive summary

• Achieved strong H1 2024 growth, with rice and pasta divisions outperforming their markets and brands gaining share.

• 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.

• Extraordinary cash flow of around EUR30 million expected from real estate sales in 2024.

Financial highlights

• Consolidated revenue up 1.4% year-over-year to EUR1,580.1 million.

• EBITDA-A increased 8.1% to EUR210.5 million; margin rose to 13.3%.

• Net profit grew 16.9% to EUR108.9 million.

• Net debt at EUR572.5 million, slightly higher than year-end 2023 due to dividend payments.

• Net profit margin was about 6.9%.

Outlook and guidance

• 24/25 harvest expected to return to near-normal after years of water shortages, but South American flooding may keep prices elevated.

• Capacity expansions in North America and Europe to be completed in H2 2024.

• Real estate sales to generate significant cash flow, with EUR23.5 million pending from French warehouse sale.

• Property sales are expected to generate extraordinary earnings of around EUR30 million for the year, with EUR4.4 million received in June and EUR25 million in July.

• Rainfall in March supports near-normal sowing for the 24/25 rice harvest in southern Spain, improving plant utilization.