Higher profits for new Spanish group - Company News - Sos Cuetara reports financial data, merger with Koipe S.A - Brief Article

Eurofood, Nov 7, 2002

The Spanish food group Sos Cuetara has reported a 25% rise in consolidated profits to 10.97m [euro] for the first half of 2001/2002.

Sales for the group were up 105% to 564.8m [euro], while earnings before interest, tax, depreciation and amortisation (EBITDA) were up by 80.3% to 62.1m [euro].

The figures are the combined full year results of Sos Cuetara and the first eight months of Koipe, acquired by Sos in December 2001.

In a press statement, the company said Koipe had contributed 305.4m [euro] in sales and 24.8m [euro] in EBITDA to the overall results, further boosted by Sos Cuetara's overseas subsidiaries.

Growth however, was noted in all its main business sectors, including rice and olive oil.

KOIPE AGREES TO MERGER

The two Spanish food producers have also announced that they have agreed to merge.

The agreement thus creates the third largest food manufacturer in the Iberian country.

Sos Cuetara, itself a result of a merger only two years ago, has reached an agreement with its subsidiary Koipe.

The deal values Sos Cuetara at 261.84m [euro], a premium of 2.9% over its share price, and Koipe at 421.19m [euro], a premium of 10%.

CUT DEBT

The deal will cut Sos Cuetara's debt by around 40%, the main factor behind the merger.

Sos Cuetara, which was formed in 2000 following the merger of rice firm Sos Arana and biscuit maker Cuetara, paid some 415m [euro] to gain control of oil producer Koipe last year.

The deal remains subject to shareholder approval.