Barrilla said results were impacted by the “continuing global recession”

Barrilla said results were impacted by the “continuing global recession”

Italian food group Barilla saw its profits slide in fiscal 2012 as continued economic uncertainty and rising raw material prices impacted earnings.

In the 12-month period, net profit dropped to EUR60m (US$77.2m). This compared to earnings of EUR76m last year.

Recurring EBITDA was down 9.2% to EUR433m. Barrilla said results were impacted by the "continuing global recession", which it said was particularly severe in Italy where Barilla made around 40% of its 2012 revenue.

Sales in the period, however, edged up 2% to EUR3.99bn. CEO Claudio Colzani said the company aims to double revenue by 2020.

He added that the sale of German bakery group Lieken, which is under way, will allow Barilla to "further increase its financial soundness".

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Barilla Group: 2012 Consolidated Results

16 May, 2013

2012 Net sales up 2% thanks to growth outside Europe

The renewed strategy for international development takes off from Brazil

Performance highlights 
  • Net sales amounting to Euro 3,996 million (Euro 3,916 million in 2011, up 2%)
  • Recurring EBITDA amounting to Euro 433 million (Euro 477 million in 2011, down 9.2%)
  • Consolidated net profit amounting to Euro 60 million (Euro 76 million in 2011, down 21.1%)
  • Net debt amounting to Euro 574 million as at the end of 2012 (Euro 688 million as at the end of 2011)
  • Barilla confirmed its leadership in the world pasta market (1 million tons) and in Italian bakery products market
Parma, May 16th 2013 - Despite the ongoing economic crisis, consolidated 2012 revenue of the Barilla Group – which includes Barilla G. e R. Fratelli and Lieken – increased by 2%, settling at Euro 3,996 million vs. Euro 3,916 million in 2011.
However, operating results were impacted by the continuing global recession, which was particularly severe in Italy, where Barilla made approximately 40% of its 2012 revenue.. The continued increase in the cost of certainraw materials impacted on profit margins. Barilla resolved not to transfer, to the maximum possible extent, this increase to consumers, whose purchasing ability had already been hurt by a decrease in their disposable income. In Italy, the consumption drop caused a 3% declinein sales volumes last year.
In 2012, earnings before interest, taxes, depreciation and amortization – EBITDA – fell by 9.2% to Euro 433 million, down from Euro 477 million in 2011. Consolidated net profit decreased by 21.1% to Euro 60 million.
Net debt came to Euro 574 million as at the end of 2012, decreasing from Euro 688 million as at the end of 2011. Debt decreased to approximately 1.3 times EBITDA.

Our goal is to double revenue by 2020, taking the Italian-style pasta meal to every corner of the world and consolidating our leadership in the bakery segment where we are already operating with our brands,” stated Claudio Colzani, Chief Executive Officer of the Barilla Group.
The sale of the German bakery group, Lieken, which is currently under way, will allow Barilla to further increase its financial soundness. Now, the Company can focus on the growth of its core business, consolidating its leading positions in Europe and in the American market, as well as seizing opportunities in emerging Countries. In Brazil, the new range of Barilla pasta and pasta sauces manufactured in the country is hitting supermarket shelves in these days. The Company aims to increase net sales in Brazil from Euro 18 million in 2012 to Euro 100 million in 2016, thanks to a product range designed to meet the requirements of Brazilian consumers.
"Despite the difficulties that continue to affect the European economy - and Italy in particular - we are confident that the soundness and competitive force of our Group will allow it to continue growing, also thanks to its international development,” said Guido Barilla, chairman of the Barilla Group.
In 2013, revenue is expected to grow by a few percentage points, with the main push coming from stronger volumes in the Americas and Asia.

About the Barilla Group

Barilla, originally established in 1877 as a bread and pasta shop in Parma, Italy, ranks as one of today’s top Italian food groups. Barilla leads in the global pasta business, the pasta sauces business in continental Europe, the bakery products business in Italy and the crispbread business in Scandinavia. Barilla owns 42 production sites (14 in Italy and 28 outside Italy) and exports to more than 100 countries. Every year, about 2,500,000 tons of food products under the brands of Barilla, Mulino Bianco, Voiello, Pavesi, Academia Barilla, Wasa, Harrys (France and Russia), Golden Toast (Germany), Misko (Greece), Filiz (Turkey), Yemina and Vesta (Mexico), are featured on dining tables all over the world.

Barilla has become one of the world’s most esteemed food companies and is recognized worldwide as a symbol of Italian know-how by respecting its longstanding traditional principles and values, considering employees a fundamental asset and developing leading-edge production systems.

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Original source: Barilla Group