Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EBRO FOODS SA. We currently have 6 research reports from 1 professional analysts.
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EBRO FOODS SA
EBRO FOODS SA
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.
H1 update: quarterly improvment in margins
29 Jul 15
Ebro reported its H1 results. Revenue grew by 20.9% whereas the EBITDA progressed by 8% (positive FX effect of 8%). The EBITDA margin was lower by 140bp yoy. By division, the Rice business delivered sales growth of +15.2% whereas the EBITDA margin was 90bp higher. In Pasta, sales grew by 27% while the EBITDA margin was down by 400bp (challenging North America). Profit before taxes dropped by 14% (no more one-off gains linked to the sale of Deoleo’s stake). Net debt increased to €510m (€405.6m in December 2014) due to FX effects (most of Ebro's debt is dollar denominated) as well as the purchase of RiceSelect.
Using their loaf
30 Nov 16
Finsbury Foods has been transformed by a series of acquisitions that has contributed to revenue and earnings nearly doubling over the last three years. Record levels of capital investment continue to improve the Group’s competitive position, whilst exposure to growth segments of the food market is helping likefor-likes. Profit growth is expected to slow in the current year in the absence of acquisitions but underlying trading remains resilient despite some cost headwinds, whilst debt reduction is accelerating. The rating is undemanding and the recent share price weakness has created a buying opportunity.
New packing facility; Highly significant for underpinning future growth
06 Dec 16
HFG has announced plans to expand its packing capability in Australia, by constructing (at an expected investment cost of A$115m financed through bank facilities) a new meat processing facility in Queensland, in order to supply Woolworths, the leading grocery retailer in Australia. This is a highly significant development as the new Queensland plant, alongside HFG’s two existing dedicated retail packed meat facilities in Melbourne and Bunbury (both operated as a joint venture with Woolworths) should mean that HFG supplies the bulk of Woolworth’s c.1,000 stores with their red meat needs over time. In short, this development should underpin growth at HFG for many years to come from 2020 onwards, which, in turn, should result in a higher and more stable earnings stream over time, supporting a continued rerating of HFG’s valuation multiple, in our view. We reiterate our BUY.
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m