Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EBRO FOODS SA. We currently have 7 research reports from 1 professional analysts.
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EBRO FOODS SA
EBRO FOODS SA
FY according to plan
01 Mar 17
FY update: Sales are virtually unchanged (Q4: -4.9%), whereas the EBITDA margin is up by 120bp to 14% (Q4: 14.7%). By division, Rice sales were up +0.5%, whereas the EBITDA margin progressed +150bp, reaching a record 15.3%. In Pasta, sales were up +2.5% with the margin up +60bp to 12.7% (with further improvement from quarter to quarter, Q4: 13.7% vs. 13.3% in Q3). Net profit is up 17.2% to €169.7m.
Q3: recovery in Pasta segment continues
27 Oct 16
Ebro released its Q3 update: sales are up +1.2% and the EBITDA margin is up 200bp yoy and up 30bp on a qoq basis. By division, Rice recorded +0.8% in sales and a 210bp EBITDA margin progression. Pasta recorded +1.8% in sales and a +170bp progression in margins (+130bp on a qoq basis which is very encouraging). For the FY, the group expects a turnover of €2.47bn (slightly lower than our forecast), a €340.7m EBITDA (in line with our forecast) and net profit of €167.6m.
Q2: Another solid quarter
29 Jul 16
Ebro released its H1 update. Revenue grew by 2% (-1.1% in Q2) whereas the EBITDA progressed by 1.7%. The EBITDA margin was up 170bp due to improved profitability of the Pasta segment. By division, the Rice business sales were slightly down in Q2 whereas the EBITDA margin was 180bp higher (and stable on a quarter after quarter basis). In Pasta, sales grew by 5% while the EBITDA margin improved to 12% on the back of a better North America performance. The company warned that the favourable trends in the raw material environment could reverse, therefore the second half of the year might be weaker.
Q1: good start to the year
28 Apr 16
Ebro released its Q1 update. Net sales grew +2.7%, whereas the EBITDA margin was up +140bp. By division, Rice recorded +2.5% growth in net sales and +170bp in the EBITDA margin, driven by good underlying volume trends in Europe and North America. Pasta recorded +3.3% growth in net sales and +200bp in the EBITDA margin, driven by the strong performance of Garofalo as well as a more stable pricing environment in North America and business initiatives to align with current consumer trends in the US (gluten free, low calorie, ancient grains). Advertising spend for period was up 8.2%. Net profit for the period was up +43% thanks to the disposal of a business in Puerto Rico.
Q4 was better than expected
25 Feb 16
Ebro released its FY results. The group's revenue was up 16%, EBITDA was up +9.6%, whereas the EBITDA margin contracted by 70bp. The advertising ratio grew to 3.5% of sales vs. 3.4% a year earlier. By division, Rice's FY revenue was up +13% (+8.6% in Q4) whereas the EBITDA margin increased by 60bp. The strong performance of the division was driven by the very strong results in North America (good category growth, market share gains and raw material cost reductions). In Europe, the performance was affected by rising promotional activity and the consolidation process. Ebro increased its innovation and advertising activity in order to respond to the more challenging European environment. Pasta’s revenue was up 19% (15.5% in Q4), whereas the EBITDA margin contracted by 210bp (to 12.1%) due to significantly higher durum wheat prices. In the US, the company's performance has been impacted by the rise in durum wheat prices as well as a -3% category decline linked to low carbohydrate diet trends. To relaunch its sales, Ebro started to readjust its portfolio to new trends: gluten-free pasta, use of quinoa and low-calorie pastas. In Europe, the company outperformed the market by growing 3.8% vs. a category decrease of 1.5%. The FY net profit was practically flat (-0.8%). Net debt was up +5%.
Q3 update: US pasta lags
29 Oct 15
Ebro released its Q3 update. Sales grew by 11.7% in Q3, EBITDA progressed by 10% (with 10% FX effect) whereas the EBITDA margin contracted by 15bp. By division, Rice's revenue was up +13.5% but the EBITDA margin contracted by 20bp vs. Q2 15, due to higher raw material costs. Pasta's revenue was up by 10.2% with an EBITDA improvement of 50bp vs. Q2 15. Despite a better Q3, the EBITDA margin for the Pasta segment is still 90bp below its 9M 14 level (and will probably finish FY15 with a 240bp gap vs. the FY14 EBITDA margin level) due to the difficult situation in the US where the “low carbohydrate” fashion has pushed the overall Pasta market down by 3.4% and -20% for wholegrain pastas. Net profit for 9M is down 3.8% due to absence of one-off gains such as the divestment of Deoleo. For FY15, Ebro guides for total sales of €2.44bn, EBITDA of €302m and net profit of €142m.
20 Apr 17
Although the last two months have seen a broadly neutral performance from the UK healthcare sector compared to a significantly more volatile 6 months prior, we continue to expect macro-events and increased geo-political risk to result in an overall neutral performance from the sector over the next period. However, company specific news is likely to drive a strong outperformance from selected mid-market companies. We retain our neutral sector stance whilst highlighting those we expect to outperform.
03 Apr 17
After much heralding, MIFID II is finally beginning to have an impact on the business of investment research, though its true ramifications might take years to be seen. The role of analyst research is widely misunderstood. It is not all about the conclusion: the rating and price target. The real content of research is about what is discounted in the current share price and what assumptions would produce different outcomes.
N+1 Singer - Nuclear options - Significant long-term opportunities for UK companies
12 Apr 17
UK nuclear represents a huge and complex market offering significant long-term opportunities. New build nuclear is required to help meet rising UK power generation needs and replace generation capacity which is nearing end of life. Decommissioning is essential to clean up the UK’s legacy nuclear sites safely and securely, prioritising areas where deteriorating buildings present an unacceptable risk. The total budget for nuclear is estimated at c.£301bn, with a significant proportion of this spend expected to be with UK companies. The contracting opportunities are not without risks and uncertainties. However many companies are already generating revenues and profits from UK nuclear contracts, including a number from our small and mid cap universe. We expect these contributions to become more material over time, and for the experience gained in the UK market to leave companies well-positioned to pursue nuclear opportunities overseas. Our top picks are Severfield (Buy) and Augean (Corporate), but we are also positive on Redhall (Non-Rated).
Feeling good about growth prospects
13 Apr 17
In our view Nichols (NICL LN, BUY, T/P 2300p) remains well positioned to grow. Its core Vimto business’s strong performances in both the UK and Middle East enjoy significant intra-regional geographic growth opportunities as well as generating enough free cash flow to fund NPD and selective M&A. Moreover, we argue that the company’s very virtuous outsourcing business model merits a premium valuation. We raise our price target from 1760p to 2300p. BUY.
Positioned to perform
08 Mar 17
Stock Spirits (STCK LN, BUY, T/P 240p) preliminary 2016 results were in line with expectations, reconfirming their 11th January 2017 trading statement. Adjusted EBITDA was €51.5m compared with Bloomberg consensus and Whitman Howard estimates of €50.0m. The company are hosting an analyst presentation at 9.00am.