The price of olive oil will not give consumers any respite in the coming months. This is warned by Deoleo, the giant in the sector that owns brands such as Carbonell, Hojiblanca or Koipe. The company has been harmed by the decline in consumption of what is known as kitchen liquid gold, losing 9.7 million euros in the first half of the year and selling 21.9% of its products.
Olive oil prices are at a record high and Deoleo warns that its forecasts are pessimistic. “The lack of rain and episodes of extreme and prolonged heat have led to low availability of raw materials and therefore, to a historic increase in prices of more than 90%,” the company highlights in a statement sent to the National Securities Market Commission.
Production and quality also decrease, which causes the prices of virgin and extra virgin olive oil to reach very high prices. Faced with this situation, Deoleo is stockpiling quality oil: “This shortage has led the group to use its capillarity in purchasing and stockpile larger volumes of stocks, to ensure both the quality and availability of the products.”
Olive oil consumption is suffering, especially in the main markets, which are Spain and Italy. The year-on-year decrease exceeds double digits, regrets Deoleo. In the United States, for its part, demand remains very strong and the oil company sees no reduction in consumption.
Deoleo defines the situation as “the most challenging context in recent years.” The oil crisis hits the company’s Ebitda, which has fallen to 12.7 million in the first six months of 2023. “The fall in commercial margins, along with higher financial expenses derived from the rise in interest rates and the costs of the novation of the company’s debt” are the cause of the losses of 9.7 million.
Despite this adverse context, Deoleo’s sales have grown by 0.6% in the first half compared to the same period in 2022. This has been possible thanks to the transfer to customers of the increase in prices experienced in the supply chain. production, the company highlights.
Ignacio Silva, president and CEO of Deoleo, assured that our reference shareholders, CVC and Alchemy, are calm and satisfied with the company’s evolution and trust that the work carried out will return to results once the market returns to normal. ”.
