Spanish food group Ebro Puleva saw profits slump 50% last year as soaring raw material prices offset a rise in turnover.
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The company today (27 February) posted net profit of EUR90.6m (US$130.7m) for 2007. Sales rose 9.4% to EUR2.7bn, driven by the recent acquisitions of New World Pasta and Minute Rice.
Ebro’s results were in line with the lower guidance given by the company last autumn when it said high feedstock prices and lower extraordinary gains would dent its fortunes.
Rising raw materials prices, especially cereals, are having a “direct impact on our bottom line”, the company said.
Countering the bad news, Ebro’s functional-foods division Puleva Biotech reported a 60% jump in net earnings to EUR2.47m last year amid strong sales.
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By GlobalDataThe result came shortly after Puleva Biotech announced it quadrupled production of its mainstay Omega-3 edible oils to 2m kilos per year.
The company said it expects 2008 sales to top EUR20m and profits EUR3.7m after the recent acquisition of local peer Exxentia.
