Spanish olive oil and rice producer SOS Corporacion Alimentaria swung into profit during the first quarter of this year, despite declining sales.
The group said yesterday (3 May) that net profit for the first quarter reached EUR8.1m (US$12m) against an EUR0.85m loss in the previous year. It said the positive result marks a “turnaround” and a “normalisation of operational activity” following three years of losses.
Turnover was down 5.5% over the quarter to EUR299.5m, which it attributed to lower olive oil prices.
The company said that EBITDA fell 20.4% to EUR20m due to reduced profitability in oil seed, which it attributed to a 28.8% increase in raw material prices against the first quarter of the previous year. It said that the drop in margins was due to raw materials sourcing during the third quarter of 2010, where a lack of financial resources meant it was unable to get the best possible price for raw materials.
The company said that it plans to improve efficiency this year and adjust production capacity to demand. Additionally, with the completion of refinancing, it said it now has the ability to act more effectively in raw materials procurement.