Madrid, 31 August 2007 - The SOS Group, brand leader in the segments of vegetable oil, rice and biscuits, today reported to the Spanish stockmarket regulator, the CNMV, the results it obtained in the first half of 2007, which show a significant increase in profits, particularly in the vegetable oil division.
In the first six months of the year net profit rose to EUR 14 million, 29% up on the same period of 2006. EBITDA came in at EUR 47.6 million, an increase of 25.2% compared to the 2006 figure. Turnover was marginally down at EUR 676.4 million, a 5% decline, mainly as a consequence of the fall in olive oil input prices.
The Group’s vegetable oil division reports a striking increase in profitability, with EBITDA of EUR 26.3 million, +64.1% higher than in the first half of 2006. This increase in profitability was thanks to lower mill-gate prices of olive oil, itself a consequence of the forecast available supply from the full 2006/07 crop year, thought likely to top 1.4 million tonnes.
Total turnover of the vegetable oil division of the SOS Group in the first half of 2007 was slightly down on last year’s figures as a result of the lower input prices for olive oil. Thus, sales were EUR 430.3 million, –10% down on the turnover achieved in the same period of 2006.
The vegetable oil division accounts for 63.6% of the total turnover of the Group and 55.3% of Group EBITDA.
Meanwhile the rice division also reported positive results, despite the downturn in world stocks that sent input prices spiralling. In Spain they rose by 21.9%. Although margins are lower, volume sales increased significantly in Portugal and held firm in Spain and the Netherlands. For its part, American Rice reported strong performance in the United States, where its brands are achieving excellent positioning in the retail market.
Total turnover of the rice division in the last half-year was EUR 134 m, 9.4% higher than the same period of 2006. At the same time EBITDA rose by 12.3% to reach EUR 9.8 million.
In the biscuit division the increase in the price of inputs, notably flours and vegetable fats, obliged the Group to adjust prices. Although EBITDA was down by –6.7%, profitability increased to 16.7%, thanks to the greater weight of value-added products, where more expensive inputs are less of a factor in comparison with standard biscuit varieties.
Finally, the diversification division reported positive results, with an increase in turnover of around 7.1% to EUR 47.4 million. The EBITDA figure, however, was down by –55.4% as a result of the advertising costs needed to promote the new Tetra Pack format used to retail Carbonell table olives.
The results obtained by the SOS Group in the first half of 2007 demonstrate the excellent performance of the vegetable oil division, thanks to a much more stable market, the strength of the Group’s brands and its export capabilities. More than 50% of company sales are now obtained abroad.
To sum up, in the words of Group chairman Jesús Salazar, ‘This was a good half-year, particularly in the olive oil business, given that the growth achieved in the domestic market and, particularly, overseas will allow us to meet the guidance we gave at the beginning of the year.’