The company will sell a factory in Antequera and plans to dismiss of workers in its offices and industrial factories in Spain.
The Spanish multinational olive oil processing company Deoleo, the world’s largest bottler of brands like Carbonell, Hojiblanca and Kiope sold in more than 80 countries, is faltering.
The company ended 2016 with a loss of €179 million and such figures have placed the firm in a state of near dissolution, according to several reports in the Spanish press.
The company has registered deteriorated assets of €96.3 million in a bid to restructure itself toward a stable financial base.
Due to the price increase of the olive oils at their origin, the company’s turnover fell to €695.2 million in 2016, a 15 percent drop. At the same time, sales dropped by 22 percent as a consequence of a strategic decision to make profitable sales a priority.
The company ended the fiscal year with net financial debt of €533 million, which was only 1.5 percent higher than 2015, and the debt was lower in the final trimester of 2016 than it was in the trimester the year before.
The operating assessment was positive for the company with a gross operating profit (Ebitda) of €46.1 million, an increase of 30 percent, in 2016. Meanwhile, the Ebitda/sales margin experienced an increase of 52.4 percent in respect to the former tax year, which demonstrated the company’s focus to improve profitability, the reports said.
The Spanish multinational also had a good financial result with its business unit in southern Europe that saw a tripling of the Ebitda in 2015, placing its figure at €15.8 million.
Deloeo has stated that its strategy is focused on consumers’ needs and the quality of its products. The multinational said it had begun the adjustment of the group’s assets and other resources in order to follow through on its objective to provide quality olive oils to its customers.
The company has decided to sell a factory in the Spanish city of Antequera and it has a new plan for the Italian factory in Inveruno and, at the start of this year, it plans to dismiss of workers in its offices and industrial factories in Spain.
Spain is the leading global producer of olive oils and the reshaping of Deoleo — the world’s largest olive oil company — is seen as an important bellwether for the sector’s success in the long term.
Dec. 5, 2023
Soaring Expenses Strain Producers in Southern Europe
Olive oil producers in Spain, Italy and Greece are grappling with challenges that threaten the viability of the sector.
Dec. 11, 2023
Organic Farm in Jaén Blazes a Trail for Selling Carbon Credits
O.Live generates about 4.5 carbon credits per hectare from its 1,000 hectares of organic groves, establishing a model for producers to increase revenue.
May. 7, 2024
Trials and Triumphs of Organic Farming in Andalusia
The fifth-generation family behind Luque Ecológico believes organic farming produces flavorful extra virgin olive oil, protects the environment and mitigates the impacts of drought.
Oct. 11, 2023
Expansion of Organic Olive Groves Slows in Spain
Organic land cultivation in Spain increased by 1.5 percent in 2022. Some organic olive groves were abandoned due to poor harvests and lower profit margins.
Jul. 9, 2024
Enhancing Excellence: How the World's Best Restaurant Uses Extra Virgin Olive Oil
Locally sourced extra virgin olive oil is an essential ingredient for the Michelin-star chefs at Disfrutar Barcelona and their award-winning tasting menu.
Aug. 2, 2023
Spain Reclaims Top Spot as Largest Olive Oil Exporter to U.S.
The removal of trade barriers and changes in strategy by Spanish companies has resulted in a steady increase in olive oil exports to the lucrative U.S. market.
Apr. 10, 2024
Farmers Protest European Agricultural Policies in Madrid
The protestors demand exceptions for European environmental regulations that they argue make their products less competitive on the global market.
Oct. 26, 2023
Extremadura Bucks the Trend of Below-Average Harvests in Spain
A steady increase in the number of intensive olive groves in the region may explain the rise in production.