Ebro Puleva could sell is dairy business and may consider disposing of its functional foods unit, Puleva Biotech, to strengthen its balance sheet and exit low-margin businesses.
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The comments come as Spanish newspaper El Confidencial this week reported Ebro was considering the strategy as the dairy divison has seen margins fall in recent years.
“This is certainly feasible,” a senior analyst with a Madrid-based broker told just-food. “Puleva has been moving into more value-added businesses and out of basic foods such as sugar and rice where margins are lower and white-label competition has increased.”
Ebro has looked to expand its business into more profitable segments such as pasta, olive oil and functional foods.
The company did not return messages seeking comment.
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