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RAR Group posted turnover of 781 million euros in 2019
According to its 2019 Annual Report and Accounts, published today, the RAR Group posted turnover of 781 million euros, with EBITDA of 60 million euros and net profit of 3.4 million euros.
In a climate of slowing growth of the world economy, the RAR Group showed recurring profitability of its businesses marginally below that of 2018, while net debt remained stable at 213 million euros.
Colep
In overall terms, Colep had a year that saw some improvement in its levels of recurring profitability. In 2019, in Europe, the Consumer Products Division experienced a recovery compared with the previous year, largely underpinned by the work done on operating efficiencies in the area of continuous improvement.
The Packaging Division was able to maintain its performance at the level of the previous year through careful management of its operating costs. In the General Line packaging business, it has been possible to maintain competitiveness and market positions and, at the same time, operating profitability.
In the Healthcare Division, 2019 was marked by the consolidation of its profitability, anchored in a growing portfolio of customers and projects, making it possible to foresee the long-term sustainability of this business on an increasingly solid basis. Colep made a decision to discontinue its liquids filling operation in Bad Schmiedeberg, Germany, which had a negative impact on its profitability in 2019.
The Continuous Improvement programme which is in progress will bring increased competitiveness to the whole of the company.
Vitacress
Vitacress had a very strong year, with growth in profitability in all its business units and strengthening of its market leadership positions in salads in Portugal and fresh herbs in the United Kingdom. The operation centred on the Netherlands showed significant growth, opening up the prospect of new avenues for growth in Central Europe. This performance was explained by an unremitting focus on innovation and the strong integration of the whole supply chain, from the farm to the shelf and the customer. The company continues to expand its investment in various areas, not only in terms of premises and equipment, but also in automation, cultivation techniques and sustainability matters, enabling Vitacress to project itself as an “environmental champion”.
RAR Açúcar
RAR Açúcar experienced a particularly challenging year, with sales prices down in relation to raw material costs, something that also impacted most European operators. The situation was reversed in the final quarter, making the coming year look much more promising. In 2020 the company is focusing on the “de-commoditisation” of its products by increasing its presence in higher added-value segments. At the same time, it has launched a series of initiatives designed to increase operating efficiency in various areas which began to show the first positive signs at the end of 2019.
RAR Imobiliária
2019 was a very positive year for RAR Imobiliária. Sales in the “Edifício do Parque” project were concluded, together with the sale of assets of significant value. The development of the “Quinta do Paço Lumiar” project continued at a good pace, with over three quarters of the project’s townhouses already sold. In addition, the “O Novo Parque” project is now at the licensing stage. Following a pre-sale phase, the start of sales is expected to begin shortly.
Acembex
Acembex maintained its position as the largest importer of cereals and serial derived products in Portugal. It has achieved increasing turnover in segments such as pet food and organic cereals, supplying several European multinational companies. Given its experience in control and traceability throughout the supply chain, it is increasingly a noteworthy player.
The Covid-19 pandemic has had direct and almost immediate impacts on the internal economies of every country, generating an unprecedented global crisis, a situation that is challenging the RAR Group to react to threats and to seize new opportunities in the management of its operations, value chains and employees.
With the information currently available regarding the foreseeable impact of the pandemic, an analysis of scenarios has been undertaken, both at operational level and in terms of financing needs. It was concluded that, due to its exposure to the food sector and the type of high consumption products manufactured by Colep, the RAR Group's operations are very resilient.
The reversal of the situation in the European sugar sector, the good prospects sustained by Vitacress’s competitiveness, together with the readjustment of Colep's restructuring, allow us in 2020 to foresee a year with improved profitability, even allowing for the effects of Covid-19.
About RAR Group:
The RAR Group, one of Portugal’s leading business groups, comprises a portfolio of diversified businesses in the areas of packaging, food, real estate and services. With a turnover of 781 million euros and 4,228 employees, RAR Group is present in Portugal, Brazil, Germany, Mexico, Poland, Spain, the United Arab Emirates and the United Kingdom.