`Deoleo Requests Extension for $83M Tax Bill


Deoleo Requests Extension for $83M Tax Bill

Sep. 4, 2014
Chris Lindahl

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Span­ish olive oil giant Deoleo has asked for a defer­ment of a €63.3 mil­lion ($83 mil­lion) tax bill to the Ital­ian gov­ern­ment.

The debt comes form the actions of the conglomerate’s Cara­pelli Firenze sub­sidiary, which is swim­ming in unpaid cus­toms duties, tax bills, inter­est and penal­ties. The deci­sion is pend­ing in court.

Deoleo argues that the bag­gage of Cara­peli Firenze should not impact the busi­ness actions of Deoleo as a whole, while the cus­toms office sees the depen­dent sub­sidiary as being the full respon­si­bil­ity of the cor­po­ra­tion.

Deoleo is the num­ber top seller of bot­tled olive oil world­wide, whose 15-brand port­fo­lio includes big names like Bertolli in the US and Italy, and the Span­ish mar­ket leader Car­bonell.

The news comes as another poten­tial blow to the already hurt­ing Deleo, which on August 28 announced net losses up to €25.5 mil­lion ($33.6 mil­lion) for the first half of 2014. The com­pany posted a profit of €4.2 mil­lion ($5.5 mil­lion) for the same period of 2013.

The com­pany said the losses were due to weaker sales which fell 6.4 per­cent to €356.9 mil­lion ($469 mil­lion) dur­ing the first half of 2014, cou­pled with the cost of refi­nanc­ing debt. Ear­lier this year, the com­pany com­pleted a refi­nanc­ing deal that cost it €23 mil­lion ($30.2 mil­lion) alone.


How­ever, the com­pany stressed in a release that all is not doom and gloom. The group’s oper­at­ing profit increased 49.7 per­cent. The earn­ings before inter­est, taxes, depre­ci­a­tion, and amor­ti­za­tion was up to €41.2 mil­lion ($54.1 mil­lion) due to improved mar­gins in the key mar­kets of Spain, Italy and North Amer­ica.

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