Profits up 23% in 2017
According to the Report and Accounts of RAR Holding, released today, the RAR Group’s turnover in 2017 was 758 million euros, with EBITDA in excess of 60 million euros. Despite a lower turnover, net profit increased by 23% to 9 million euros.
The improvement in the Group’s performance was mainly attributable to the Colep and Vitacress businesses.
Performance of the Group’s main companies ensures financial solidity
The heavy investment and the reorganisations that have taken place over recent years in the Group’s businesses have had, and will continue to have positive effects, particularly on profitability. These factors ensure a high degree of financial solidity, which is essential for the continuation of the Group’s activities.
Colep, whose European operation had a good year, achieved significant growth in the Liquids & Creams segment due to increased business with multinational customers, mainly at the new production unit in Poland. Of particular note was the strong growth and cost savings achieved in the Healthcare division, together with a noticeable recovery in operating cash flow. In the Packaging division, despite increased competition, mainly from Eastern Europe, Colep was able to maintain profitability levels.
Vitacress maintained the rate of its planned investments, improving efficiency and expanding capacity, with EBITDA growing by 15%. The high quality of its products and customer service enabled the company to retain its leadership both of the Portuguese ready-to-eat salads and vegetables market and of the UK fresh herbs market.
RAR Açúcar had a difficult year coinciding with the end of the European agricultural policy’s sugar quota system. The excess supply of sugar, coupled with the decline in its price on the world market, depressed sales prices in advance. In the final quarter of the year there began to appear signs of a recovery of margins.
RAR Imobiliária which is benefiting from the favourable economic climate, had a very positive year. In the “Edifício do Parque” development continued the selling of the units that has been rented in recent years. In the new development “Paço Lumiar”, a gated community designed by the architect Souto de Moura, 40% of the townhouses were sold by the end 2017, although construction only begun in April 2018.
Acembex strengthened its leadership position in the import of cereals and cereal derivatives from various origins to Portugal, with a market share of around 20%. As a specialist in port logistics operations as well as the surrounding services, it has also succeeded in growing its business beyond Portugal.
2018 promises to be a year of good opportunities to improve the Group’s various operations.