RAR Group ends 2016 with profits of 7.4 million euros

According to the Annual Report & Accounts of RAR Holding, published today, the RAR Group’s turnover in 2016 totalled 831 million euros and EBITDA totalled 57 million euros, an increase of 43.5% on the previous year. Net profit totalled 7.4 million euros.

2016 confirmed the trend towards recovery of the operating profitability, net profit and debt reduction levels that the RAR Group has achieved in recent years.

The improvement in the Group’s performance was mainly attributable to the Colep and Vitacress businesses but also to RAR Açúcar, which saw significant progress compared to previous years.

Consolidation of investments provides sustained growth
A strategy of consolidating existing investments was pursued and the foundations for sustained growth are now established and will allow us to aspire to reinforcing the leadership positions we hold in the key markets and operating regions of RAR Group companies.

Colep had a very positive year in its European operation, with the packaging division again achieving record results and the consumer products division showing growth based on strong relationships with multinational customers. The Brazil operation underwent a profound restructuring of its local units, the effects of which are expected will lead to a positive operating situation in 2017. In Mexico, there was a significant increase in sales in 2015 of 42 million Mexican pesos to 87 million. In the United Arab Emirates, sales grew by around 15%. Colep ended 2016 with consolidated sales of 464 million euros and EBITDA of 43 million euros.

Vitacress had a positive overall performance, ending 2016 with turnover of 110 million pounds sterling (134 million euros). The company maintained its progress in the salads and fresh herbs businesses, with the Vitacress brand significantly increasing its presence and recognition in the Portuguese market. The current investment programme has improved the efficiency and quality of processes. The fresh herb operation in the Benelux countries in partnership with the Gipmans Group has shown good progress, further reinforced by the business prospects in Germany.

RAR Açúcar saw a very positive turnaround in its business, with margins recovering and a record volume of refining. The company ended 2016 with a turnover of 99 million euros, a clear demonstration of the recovery of turnover levels which was accompanied by a reduction in fixed costs, increased efficiency and correct management of raw materials purchases and sales, all of which are reflected positively in operating margins. The 2017 financial year will bring new challenges, with the alteration of the European regime governing the sugar sector which will put refiners at a serious disadvantage compared with beet sugar producers.

RAR Imobiliária profited from the recovery in the sector, selling or leasing almost all the apartments in the “Edifício do Parque” development and selling some assets in the centre of Porto. The new “Paço do Lumiar” development, a gated condominium designed by the architect Souto de Moura, entered the sales phase at the end of the year, with the start of its construction planned for 2017. The company ended 2016 with a turnover of 4 million euros.

Acembex, despite a lower turnover attributable to the fall in commodity prices, maintained its leading position in the import of cereals and reputation among European pet food operators to whom it supplies raw materials from Portugal and other sources. With a 20% share of the Portuguese market, Acembex handled 750,000 tons of cereals and cereal derivatives and ended the year with a turnover of 131 million euros.