Deoleo : Press Release Q3 2017

Deoleo continues to reduce its losses, 80% in the first nine months, to 5.4 million of euros.

• Ebitda amounted to 26.8 million of Euros, affected by the high level of raw material prices and by non-recurring expenses linked to the restructurings undertaken recently.
• The main business units experienced positive evolution, in spite of wholesale oil prices continuing to rise (+16%) and consumption down 11%.

Madrid, October 26, 2017.- Deoleo has reduced its losses by 80% in the first nine months of the year, to 5.4 million euros, compared to a negative result of 26.9 million in September 2016. Operating income was positive at 8.3 million euros, compared to

2.6 million negative the previous year. Also the financial results have improved 27% in the period.

All business units, with the exception of Northern Europe, have maintained their positive trend and registered increases in EBITDA. Even so, overall EBITDA fell by 29.4% to € 26.8 million due to high raw material prices and non-recurring costs associated to restructuring undertaken in recent months.

Total turnover for the period was 513.4 million euros, only 1.3% below the figure for September 2016. In the main business units the sales figure has suffered due to the fall in volumes due to the high prices of the raw material and the consequent decrease of the consumption.

Prices in Spain remain around € 3.6 / kg, representing an increase of around 16% for all varieties compared to previous year. This trend is having an impact on consumption: according to data from the International Olive Council (IOC) on the 2016/17 olive oil season, consumption in member countries has fallen by 11%. In Spain, according to Nielsen data, the reduction was 8%, while seed oil has grown by 5%.

In Italy, olive oil consumption hardly changes compared to the same period of 2016, while it has fallen in the United States by 2%.

For the recently started 2017/18 harvest, the IOC estimates world production 12% over the previous season, which opens up good prospects for price stability and recovery in consumption.

With respect to financial results, the company's present cash levels and revolving and factoring lines utilization ensures sufficient liquidity as well as its ability to expand its supplier base. In addition, as of September 30, 2017, Deoleo has complied with all its financial covenants.

On the other hand, net financial debt remains 3% above the closing of 2016 and has decreased by 2.8% compared to June 2017.

Deoleo is a Spanish food multinational, world leader in olive oil marketing, with presence in more than 80 countries of all five continents, factories in Spain and Italy and commercial delegations in 15 countries. Deoleo has leading brands around the world, such as Bertolli, the market leader in US, Carapelli and Sasso; and the Spanish Carbonell, Hojiblanca and Koipe.