Global Olive Oil Giant Deoleo at Brink of Dissolution

The company will sell a factory in Antequera and plans to dismiss of workers in its offices and industrial factories in Spain.

Mar. 7, 2017
By Eduardo Hernandez

Recent News

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.

Quality matters.
Find the world's best olive oils near you.

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.



Related News

Feedback / Suggestions