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.
Frequency of research reports
Research reports on
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.
13 Feb 17
Middlesbrough-based pawnbroker Ramsdens Holdings is set to join AIM on 15 February. Its growth is not coming from its core business but from providing foreign currency, pre-paid travel cards and international payments. The strategy is to increase the group’s online activities and grow the number of branches. In the year to March 2016, group revenues improved from £29.2m to £30m. The accounts of the main subsidiary show that foreign-currency margin rose from £5.36m to £7.59m. This contributes 35% of group gross profit. By contrast, the core business of pawnbroking, precious metal purchases and retail sales fell from £21.3m to £19.8m. Revenues from other financial services were flat at £2.6m. Ramsdens has 127 sites and last year it made an operating profit of £3.19m. In the six months to September 2016, revenues increased from £16.2m to £18.4m and operating profit improved from £2.81m to £3.48m. The placing will raise £15.6m at 86p a share, valuing the company at £26.5m. NorthEdge Capital, which backed a buyout in September 2014, will receive just over £10m from share sales. The NorthEdge stake will fall from 75.6% to 30.7%. The other £5m will go to the company and be used to repay the remaining loan notes and the costs of the flotation. By the end of March 2016, there were still £4m of loan notes outstanding to NorthEdge, with £4.86m paid off during the previous year.
Salient play in a healthy industry
16 Feb 17
PepsiCo’s (PEP US, N/R) full year figures reconfirmed growth expectations for the US FMCG giant in 2017. PepsiCo – which generates one third of its revenue from North American beverages – looks for 3% organic sales growth in 2017. Our own view about UK soft drinks remains positive. Flexibility around sugar, ongoing innovation, potential price support from a sugar tax and further M&A are all consistent with the industry maintaining sales growth and delivering positive share price performances.
New CEO resets targets: cost savings ahead, mid single-digit top-line target by 2020
16 Feb 17
Nestle’s FY and Q4 update: In Q4, sales grew organically +2.9% (weaker than 3.5% expected). In Q4, Zone Americas, EMENA and Others slowed down compared to the previous quarter. Zone AOA (+4.4%), Waters (+5.4%) and Nestle Nutrition performed better than in Q3. On a FY basis, organic sales are up +3.2% (cons. 3.4%) with RIG +2.4% and pricing of 0.8%. On reported figures, sales are up +0.8 (FX: -1.6%). The trading operating margin is up 30bp on constant FX and +20bp on reported figures (in line with consensus). FY17 outlook: top-line growth of 2-4%, stable operating margin as a result of a considerable increase in restructuring costs to drive future profitability. EPS is expected to rise at constant FX and capital efficiency is also expected to rise. For the mid-term, Nestlé targets mid single-digit top-line growth and 200bp in structural cost savings by 2020. The proposed dividend is CHF2.30 (vs. CHF2.25 last year).
PG: Growth Prospects in Healthcare
26 Jan 17
We expect the volatility of the last 3 months to continue, with macro events, particularly the uncertainty brought by President Trump and his focus on pharma pricing and dismantling the Affordable Care Act, likely to keep healthcare in the headlines for the wrong reasons. We believe the more highly valued larger stocks are likely to struggle to break out to new trading levels, but note there remains good value within the smaller end of the sector for stockpickers, with company specific events likely to drive some stocks well ahead of the crowd.
Foundations laid; building starts
15 Feb 17
Last week RM posted a reassuring set of prelims (adj. PBT 4% ahead) that showed continued progress within RM Education (+6% EBIT gr’th) and RM Results (+22% EBIT gr’th) – achievements that shouldn’t be overshadowed by the challenging (but temporary) external market, which is weighing on RM Resources (-9% EBIT). Indeed, combined with Connect Education & Care, we are bullish on the division’s long-term prospects, and as such we raise our target price to 207p and retain our Buy recommendation.