Deoleo loses 9.7 million euros in the first half after reducing olive oil consumption

MADRID, 25 Sep.

Deoleo loses 9.7 million euros in the first half after reducing olive oil consumption


Deoleo, manufacturer of the Hojiblanca and Carbonell olive oil brands, recorded net losses of 9.7 million euros in the first half of the year, impacted by lower consumption of olive oil due to its high prices.

As reported this Monday by the multinational oleica, its sales figure increased by 0.6% year-on-year in the first half of the year, up to 400.95 million euros, thanks to "the partial transfer to customers of the increase in prices experienced throughout the chain", and to the "solidity" of its brands.

However, Deoleo has stressed that the price increase has affected olive oil consumption and has led to a reduction in its sales volumes of 21.9% compared to the previous year.

The company, which has stated that these results are in line with what was expected, has explained that this decrease in volumes has affected the brands' shares to the benefit of the distribution brand, causing an "erosion" in the margins that did not has been able to be compensated by the increase in prices.

This in turn impacted Deoleo's gross operating result (Ebitda), which reached 12.7 million euros in the first half, 43% less than in the same period of 2022.

On the other hand, the company emphasizes that both the increase in interest rates and the costs of the novation of its debt have led to an impact of 8 million in higher financial expenses during the period.

The company has recalled that both the lack of rain and the episodes of extreme and prolonged heat have led to a low availability of raw materials and therefore, to a "historic rise" in prices by more than 90%.

Specifically, Deoleo has detailed that this shortage has led the group to use its capillarity in purchasing and collect larger volumes of stocks, to ensure both the quality and availability of the products.

The president and CEO of Deoleo, Ignacio Silva, has highlighted that in the face of the "challenging" context of the second half of the year, the company will prioritize the roadmap outlined in its strategic plan, promoting sustainability, as well as quality and innovation.

Along these lines, Deoleo has predicted an even "more challenging" second half of the year. Specifically, the latest EU estimate for the olive oil harvest of the current campaign foresees a global production of 2.5 million tons, 27% less than in the previous campaign and 24% below the average of the last five preceding campaigns.

Specifically, this drop is concentrated in the countries of the European Union, where a drop of 40% is estimated, while for the rest of the producing countries the expected drop is 1%.

Silva has also stressed that key shareholders of Deoleo, CVC and Alchemy, are "calm and satisfied" with the company's evolution and "trust that the work done will revert to results once the market returns to normal."