Deoleo sees progress on restructuring strategy despite mounting losses

Deoleo sees progress on restructuring strategy despite mounting losses

Deoleo's 2016 net earnings were dented by restructuring charges but the company flagged progress on its restructuring drive as well as an improved operating performance. 

The Spanish olive oil maker recorded a loss of EUR179m (US$188.7m) in the 12 months to end-December. In 2015, the company said its net loss totalled EUR61.3m.

The group said the increase in losses reflected EUR96.3m in restructuring charges as well as changes to tax regulations, which trimmed EUR53.3m off the bottom line. 

Despite the loss for the year, Deoleo was upbeat on its improved operating performance. The company said that EBITDA rose 30% year-on-year, rising to EUR46m. 

Turnover fell 15% during 2016, with volumes dropping 22% from 2015's levels as the group shed lower margin sales. 

As part of its restructuring programme, Deoleo said that it is "redesigning processes, systems and structure" in the firm to focus on quality and efficiency. The company said this initiative is about "building a new Deoleo". The group insisted progress is being made adapting the "industrial capacity, resources and assets" of the company to "the current reality of the business".

Deoleo said it wants to establish a company that is "oriented to the consumer" and focused on quality.