Deoleo issues voluntary recall of two brands in the U.S.

Spain-based olive oil company Deoleo S.A., has commenced a voluntary recall of two of its products, Bertolli and Carapelli Extra Virgin Olive Oil, from the U.S. markets. The recall has been initiated due to detection of traces of Trifloxystrobin and Tebuconazole — two pesticides banned by the U.S. Food and Drug Administration (FDA) in olive oil.

Both the chemicals are classified as “not likely human carcinogens” by the U.S. FDA. The products Bertolli Extra Virgin Olive Oil (8.5 oz.) and Carapelli Extra Virgin Olive Oil (25.5 oz.), were sold across 20 states in the U.S.

Previously in November 2015, Deoleo USA voluntarily withdrew some of its Bertolli and Carapelli Extra Light Tasting and Bertolli Classico Pure Olive Oil due to premature spoilage.

Source: Olive Oil Times

Deoleo: 3Q’15 Trading Update

Headquartered in Madrid, Spain, Deoleo S.A. is company engaged in the manufacturing, processing and marketing of bottled olive oil, vinegars, sauces and other food products. Major brands of the company include Bertolli, Carbonell, Carapelli, Sasso, Koipe, Sensat, Figaro and Friol.

On 13 June 2014, CVC Capital Partners acquired a 29.99% stake in Deoleo by offering €0.38 per share and on 30 December 2014, secured an additional 18.1% stake, taking its total stake in Deoleo to 48.1%. Currently, CVC holds a 50% stake in the company.

3Q’15 Trading Update:

  • Deoleo’s sales for 9M’15 period rose 11.8% y/y to €628.7m on account rising prices of olive oil across Italy and Spain, despite a poor harvesting season where crop output was hampered by unfavourable weather conditions. Rising prices were attributed to a poor harvesting season in Europe, primarily in Spain and Italy.
  • EBITDA declined sharply by 46.9% y/y to €31.8m.
  • With €24m drawn under its €85m Sr.Sec Revolver, the leverage covenant kicks in if more that 40% or €35m is drawn.
  • Net financial debt as on 30 September 2015 was €524m and LTM Net leverage was 9.8x.

For further reading, a short snippet is provided in the attached excel.

Attached file: Deoleo S.A.