Food producer Ebro profits as consumers stock up on rice, pasta during pandemic
25/02/2021 13:27
MADRID, Feb 25 (Reuters) - Spain's Ebro Foods EBRO.MC
reported on Thursday a 36% jump in annual profit, with its rice
and pasta products particularly popular as coronavirus
restrictions forced people to eat more at home.
The owner of brands such as Tilda rice in Britain and pasta
makes Garofalo in Italy and Panzani in France, said that its
sales increased 15% in 2020 to 3.24 billion euros ($3.96
billion) in an "exceptional" year. That resulted in an annual
net profit of 192 million euros.
The company, which says it is the world's second-biggest
vendor of packaged rice, had to rearrange its production last
year to meet unusually high peaks in demand for rice and pasta.
It cautioned that 2021 would be a difficult year but that it
should be able to weather the challenges.
Ebro said it expects higher costs from more expensive raw
materials and freight fees, as well as lower demand from
consumers whose earnings have been affected by COVID-19
restrictions.
The company also expects pressure on prices from
supermarkets, saying renewed competition will lead to price
wars.
Ebro's shares, which have fallen more than 8% since the
start of 2021, were down 0.4% in early afternoon trade.
($1 = 0.8175 euros)
(Reporting by Emma Pinedo, Editing by Inti Landauro and Susan
Fenton)
((emma.pinedo@thomsonreuters.com; 918 35 68 34; Reuters
Messaging: emma.pinedo.thomsonreuters.com@reuters.net))