We have been dealing with the same situation in Q3 as in previous quarters:
High raw material and energy cost inflation.
Very high transport costs, however this is now showing signs of easing.
A stronger US dollar placing pressure on imports, but favouring exports to the US (Bertagni and Garofalo).
Issues recruiting employees to cover workforce positions, both in North America and at various plants across Europe.
In addition to these factors, we are also starting to feel the impact of the following new issues:
Softening demand as a result of: 1) a return to normal shopping habits following impulse buying at the start of the war in Ukraine, and 2) rising inflation.
A move towards buying more private label products at the expense of brands and manufacturer products, as people try to save money.
Threat of the current drought getting worse, which could affect future harvests.
All in all, the Group's results are satisfactory but performance has varied: healthy growth in the rice division where our strong stockpiling and commercial position in the different markets are working well for us, and greater difficulties in the pasta division where, particularly in fresh products, stocks are more short term and there is more elasticity to price rises.
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BUSINESS UNIT RESULTS
9M22
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Ebro Foods SA published this content on 26 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2022 17:59:06 UTC.
Ebro Foods SA is a Spain-based company primarily engaged in the food industry. The Company's product portfolio includes rice, pasta, cereals and diet products, legumes, as well as organic food, among others. The Company is also involved in the production of soft drinks, pharmaceutical products, animal feeds and biofuels. It markets its products under a variety of brands, such as SOS, Brillante, La Cigala, La Fallera, Saludaes, American Beauty, San Giorgio, 3 Glocken, Skinner, Geovita and Vegetalia, among others. The Company operates through numerous subsidiaries, such as Herba Ricemills SL, Herba Nutricion SL, Panzani SAS, Dosbio 2010 SL, Riviana Foods Inc, Ebro Foods Alimentacion SA, Azucarera Energias SA, Pastificio Lucio Garofalo SpA and Roland Monterrat SA.
EBRO FOODS, S.A. 
