Bertolli Maker Said to Expect Profit Recovery on Olive-Oil SlumpEdith Fishta, Luca Casiraghi and Manuel Baigorri
Deoleo SA, the maker of Bertolli olive oil, told lenders that earnings will rebound this year, delaying the need for new capital, according to two people familiar with the matter.
Earnings before interest, tax, depreciation and amortization is forecast to rise to about 60 million euros ($68 million) this year from 35.6 million euros in 2015, parent CVC Capital Partners said at a meeting on Thursday, according to the people, who asked not to be identified because the event was private. CVC owns slightly more than 50 percent of Madrid-listed Deoleo.
The company expects lower costs this year because better harvests have slashed prices for olive oil in Spain and Italy. Prices surged to the highest in at least five years in 2015, according to data compiled by Bloomberg, as bad weather and blight damaged crops.
A spokesman for CVC declined to the comment on the earnings forecast. A spokeswoman for Deoleo, employed by Report Comunicacion, also declined to comment.
Deoleo raised 600 million euros of loans to fund its acquisition by CVC in 2014. The loans are quoted at about 75 cents on the euro following the meeting, up from about 68 cents on the euro last week, the people said.
The company’s shares have fallen more than 45 percent in the past year, cutting its market value to about 260 million euros.