Deoleo, the Spain-based olive oil supplier, has set out a plan to reduce its share capital by at least EUR300m (US$320m) as it looks to improve its balance sheet after another year of losses.
The Carbonell oil owner said the reduction would be between EUR300m and EUR323m, with a nominal share price of EUR0.12 and EUR0.10.
Deoleo shareholders, including majority investor and private-equity firm CVC, will vote on the plans at the company’s annual general meeting next month.
Deoleo ran up a loss of EUR179m for 2016, compared to a loss of EUR61.3m in 2015.
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.