Madrid, 10 May 2007 - The SOS Group, the brand leader in the segments of vegetable oils, rice and biscuits, today presented its first quarter results for 2007 to the Spanish Securities Market Commission or CNMV.
In the first three months of the year Group turnover rose to EUR 340.2 million, 1.93% higher than in the equivalent period of 2006. EBITDA came in at EUR 25.5 million, 35% more than in the first quarter of last year, while net profit rose to EUR 6.2 million, 32% more.
The vegetable oil division generated the greatest profit within the Group, achieving a turnover of EUR 219.9 million, 2.75% more than in the same period of 2006, from which it obtained EBITDA of EUR 13.6 million, up on last year's performance by 113%. In all the Group's vegetable oil activities accounted for 64.6% of sales and 53.6% of Group EBITDA.
By the end of March Spanish olive oil production in the context of the 2006/07 crop year had reached slightly above 1.09 million tonnes, a notable increase on the 827,000 tonnes achieved by the same date in the previous year. This caused a noticeable decline in mill-gate prices, thus encouraging both domestic consumption and exports, and allowing the SOS Group to recover its margins in this its key division. In the first quarter of 2007 Group profitability in this segment outstripped previous figures thanks to the trading strength and quality of its core brands.
The decline in the mill-gate price of olive oil also produced a surge in export sales. Strongest growth was achieved in those countries in which the SOS brands already enjoy a major presence, notably Australia, Brazil and New Zealand, through an emerging market for bottled olive oil, India, also performed well. In all the Group's overseas sales of bottled olive oil rose by 24.7% in comparison with those of the first quarter of 2006.
In the Italian market, where the SOS Group is also the leading bottler of olive oil, sales of the Group’s top brands, Carapelli and Sasso, rose in volume terms by 6.1%.
With regard to the seed-oil market, a poor domestic crop caused by the prolonged drought and increased demand for oil-bearing seeds for use as biofuels, pushed up the shelf price of seed oils by 8.0% for refined oils and 9.6% for raw oil. Notwithstanding, the retail market for seed oils held firm, growing 1.1% in volume terms. In Italy the addition of the figures for the Friol brand enabled the Group to increase volume and turnover figures for seed oils, making the company the market leader in this segment.