Ebro profits leap despite depressed sales

Ebro profits leap despite depressed sales

Spanish pasta-to-rice group Ebro Foods has confirmed that its profits more than doubled in 2010 despite a 3% fall in sales.

Ebro first disclosed its 2010 earnings last month but yesterday (28 February) the company unveiled its full numbers and posted a 120% leap in net profit to EUR389m (US$537.7m). EBITDA was up 11% at EUR271.5m, while EBIT rose 11.7% to EUR213m.

However, the company said its net turnover fell 3.6% to EUR1.7bn after its product prices were hit in the first half of the year by lower raw-material costs. Ebro's rice sales fell 3% to EUR811.3m, while its pasta sales dipped 1.3% to EUR915.8m.

Ebro's net debt was cut to EUR17.6m, helped by the EUR630m it received from the sale of its dairy division to Lactalis.