Ebro Foods (EBRO) Q2 2025 earnings summary

Executive summary

• H1 2025 saw record Adjusted EBITDA despite a 3% sales decline and 10.9% drop in net profit, driven by industrial efficiency, innovation, and marketing investments.

• Net profit fell to €97.0 million, mainly due to negative FX, higher interest, and increased taxes from a company sale.

• The business remained resilient amid global geopolitical tensions, with no significant direct impacts from conflicts in Ukraine, the Middle East, or Red Sea disruptions.

• No significant business combinations or changes in group structure occurred during the period.

• New product launches and increased marketing investments supported brand growth despite challenging market conditions.

Financial highlights

• Consolidated sales fell 3.0% year-over-year to €1,533.4 million in H1 2025.

• Adjusted EBITDA reached €212.9 million, up 1.1% year-over-year, with margin at a record 13.9%.

• Net profit dropped 10.9% to €97.0 million, mainly due to negative FX, higher interest, and tax effects.

• Rice division sales declined 3.9% to €1,187.2 million, but EBITDA-A increased 3.3% to €169.9 million.

• Pasta division turnover was stable at €347.1 million, but EBITDA-A fell 5.0% to €51.8 million due to weaker fresh pasta sales.

Outlook and guidance

• H2 2025 expected to remain highly competitive, with international rice prices at historic lows and new microwave and refrigerated rice products launching.

• Ongoing investment in marketing and advertising to support new product launches and brand strength.

• Management expects the second half to be stronger, typically representing 55% of annual activity and results.

• The group continues to monitor global trade uncertainties, especially tariffs and currency volatility, but expects limited impact due to diversified sourcing and production.