Sos Cuetara has announced that its 2005 net profits fell to EUR10.3m (US$12.3m), which, according to Spanish newspapers, represents a year-on-year decline of 73%.

The company had previously warned that its profit margins would be hit, because it hadn’t passed higher olive oil prices onto its retail customers. This has had a negative impact on EBITDA margins, which fell 29% to EUR55.5m.

The group’s 2005 sales rose by 29%, driven primarily by its olive oil division, which reported a 59% increase.