La Doria reports growth in turnover but a decline in profits and margins

La Doria, a leading private-label producer of tomato derivatives, ready sauces, legumes and fruit juices and drinks, posted consolidated revenues of €688 million in 2018, 2.8% up on the previous year’s €669.1 million.

Image credits: La Doria

Exports accounted for 80.3% of total sales (up 4.2%), while domestic sales dropped by 2.5% to 19.7% due to the generalised fall in prices (especially in the discount channel) and the decline in consumption of canned tomatoes and fruit juices.

The lower prices together with higher production costs resulted in a fall in net profit (€27.3 million; -10%) and EBITDA, which dropped from €60.12 million to €52.82 million (-12%).

The forecasts for the next three years point to a worsening of the situation for the sector amid a less favourable economic climate, prompting estimates of a fall in revenue to €691 million and net profit to €26 million in 2019.

The most important goals are implementation of the large four-year investment plan launched in 2018, which will allocate around €115 million to an increase in production capacity, industrial and logistic efficiency, exploitation of economies of scale and cost cutting.