Spanish dried-food producer Ebro Foods posted a 5.8% rise in net profit in the first nine months of the year after raising prices to offset higher costs.
European commodities have been affected by higher energy, oil and shipping costs, which have also driven up consumer prices in Spain and pushed inflation to a 13-year-high in September.
‘Prices have been rising throughout the year, but have spiked dramatically since June 2021,’ the company said in a statement, adding that it expected costs to rise €83 million this year, following a €60 million increase in 2020.
Net profit for January to September stood at €155.2 million, up from €146.7 million a year ago, while sales edged down 3.5% to €2.08 billion.
The Spanish food group expects price increases will allow it to remain profitable into the end of the year, and it forecasts 2021 sales of between €2.79 billion and €2.83 billion.
Adjusted earnings before interest, taxes, depreciation and amortisation should come to between €347 million and €352 million, the company said.
The company’s rice division generated a turnover of €1.3 billion, and its EBITDA-A was €173.4 million in the latest quarter.
The segment is battling rising costs in logistics, agricultural raw materials and auxiliary materials, and energy. The cost of transporting aromatic rice varieties from Asia increased tenfold year on year.
In the pasta unit, turnover amounted to €811.1 million, and EBITDA-A stood at €100 million during the quarter.
Fresh pasta sales maintained strong growth in Italy, France and Canada.
The company also completed the divestiture of its Panzani dry pasta, sauces and semolina business to CVC Capital Partners.