In a still extraordinary context due to the pandemic emergency, the economic and financial results achieved by the Italian canning group La Doria as of September 30, 2021, are very positive. Turnover remained substantially stable, despite the normalization of domestic food consumption compared to the 2020 peak. Margins improved significantly, thanks to a positive sales price dynamic, especially for the red line (canned tomatoes and red sauces). Industrial efficiency also contributed to the improvement in profitability.
TRADING ACTIVITIES IN THE UK
Trading activities, by the subsidiary LDH (La Doria) Ltd in the UK market, saw a contraction in revenues (-2%) due to the decline in sales volumes – in part offset by the price increases – which concerned all products categories, with the exception of ready-made sauces. The UK company’s margin decreased on 9M 2020 due to the above-stated reduction in sales volumes, in addition to higher logistics costs. In fact, the significant transport cost rises due to a lack of containers and of heavy-good vehicle drivers, as a combined effect of Brexit and the Covid pandemic, reduced margins.
In 2020 LDH completed the significant investment launched in 2018 as part of the Group’s plan to introduce a major highly automated logistics platform for the stocking and movement of goods to be distributed on the British market. This platform, which entered into service at the beginning of 2021, has boosted logistics efficiencies overall and shall allow over the medium-term the cutting of company costs, making it more competitive.
Commenting on the results, Chairman Antonio Ferraioli says “La Doria Group reports very satisfying results for 9M 2021. EBITDA grows even further on the excellent performance of 2020, with Q3 seeing significant progress and beating expectations”.
CONSOLIDATED RESULTS – 9M 2021
Consolidated revenues were €631 million, substantially stable (-0.4%) compared to €633.4 million in the same period of the previous year. Excellent sauces segment performance, with a growth of 9.3%. Both the red line and the pulses and vegetable line contracted 1.9%. The fruit line sales were substantially stable (+0.7%). The other lines (trading) also decreased (-2.7%).
Group revenues were generated by pulses and vegetables for 26.8%, tomato-based products for 20.1%, sauces for 14.8%, fruit for 8.9%, and trading for 29.4%. Exports accounted for 83% of total sales, substantially stable on the same period of the previous year.
CONSOLIDATED RESULTS – Q3 2021
Consolidated sales amounted to €207.1 million, increasing +8.1% compared to the same period of 2020. EBITDA was €26.5 million, increasing +18.6%, while EBIT totaled €20.9 million, also increasing (+18.6%) on Q3 2020. The EBIT margin was therefore 12.8% (vs 11.7%). The net profit in the quarter was €16.5 million, sharply increased compared to the same period of the previous year.
OUTLOOK
In view of the 9M results, La Doria forecasts stable revenues and improved EBITDA by the end of 2021, despite the expectation of increased prices for certain raw materials, as well as packaging materials and energy, which will impact especially from the final quarter. This is thanks to the strong competitive positioning and the further benefits expected from the investment plan. Next year, however, shall feature further significant raw material and packaging price inflation, especially tinplate for metal cans, in addition to energy and transport costs, which certainly influence product sales prices applied to customers.
