Spain’s Ebro Puleva expects US operating profits to rise 26% this year as it works to streamline its North American business, where it has ambitious expansion plans.
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The Madrid-based food giant hopes EBITDA will rise 26% to EUR146m (US$214m) on sales up 28% to EUR886.4m. Under its 2010-2012 plan, Puleva hopes to save EUR11m a year by cutting labour, logistics and marketing costs.
Much of the labour savings will come from the upcoming inauguration of a new rice factory in Memphis that will see it close two older sites in 2010, reducing its headcount by 150 workers. The other savings will be achieved by streamlining logistic and transport processes.
Puleva said it hopes to enter new rice and pasta markets in the US where it hopes to build a “leading” food enterprise.
From 2004-2006, Puleva has spent EUR812m to acquire several US companies including rice maker Riviana, Minute Rice and New World Pasta.
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By GlobalDataAccording to Puleva, Riviana operates five factories employing some 750 workers while New World Pasta runs three sites with 622 workers. Since acquiring Riviana and New World Pasta, Puleva has reduced their workforce by 32% and 16% respectively while sharply boosting their market share, the company said.
