Better growth than expected Ebro has released a good set of results, with 8% growth in sales in Q4 (6% above consensus) thanks to better performance in rice, with Tilda performing well and higher margin products and price increases also contributing. Pasta was more stable, despite also having price increases. EBITDA margin reached 11.4%, 50 bp above consensus, while EBITDA was 11% above estimates. Prepared to play a difficult year? Raw material prices, wages and energy will hit Ebro in 2022. However, the huge increase in working capital offers some protection for the next 2/3 quarters. The impact of this working capital turned FCF negative in 2021, but will be a cushion for 2022 in our opinion. The environment is not easy and margin expansion will be difficult. We adjust our figures We deconsolidate Panzani dry Pasta not only from 2022 (it was adjusted before) but from 2021. The better figures in 2021 together with higher price increases than initially expected drive us to increase our EBITDA 2022 and 2023 by c.7% and our EPS 2022 by more than 16%. Our valuation increases from EUR15.5 to EUR16.5. We upgrade our rating to Neutral Although the environment is not ideal, we think the company has done its homework to keep profitability stable. We do not think the company is cheap, but: 1) after the sharp share price correction since Jan 2021, and 2) in a turbulent environment, we decide to upgrade our rating to Neutral from Underperform.