Business Roundup for Spain and the UK

Burger King losses RESTAURANT BRANDS IBERIA (RBI), which owns Spain’s Burger King outlets, lost €12.2 million in 2023.

This was double 2022’s losses despite a record turnover of €1.88 billion, according to RBI’s annual accounts submitted to Spain’s Registro Mercantil, equivalent to Companies House.

The negative figures were the result of the company’s €90.8 million finance costs, which were 127 per cent more than in 2022.  Of this, €68.5 million corresponded to interest paid on a €310 million loan from RBI’s sole shareholder, the private equity firm Cinven, whose parent company is based in London.

“The net results reflect an increase in our loan payments and debt incurred though our strategy of openings and acquisitions,” RBI said.

Summer cut unlikely UK inflation fell in March but not enough to underpin hopes of a lower bank rate in the near future.

The Office for National Statistics (ONS) announced that the consumer prices index (CPI) fell from February’s 3.4 per cent to 3.2 per cent, a two-and-a half-year low but less than analysts’ 3.1 per cent prediction.

Services’ inflation, which the Bank of England (BoE) watches with an eagle eye, fell from 6.1 per cent to 6 per cent in March, disappointing City expectations of 5.8 per cent.

Tomasz Wieladek, chief European economist with the asset manager T Row Price, told the Guardian that the BoE would be “worried” that the inflation battle was not yet won.

Services’ inflation would concern the BoE and make it cautious about cutting rates this summer, Wieladek said.

Troubled water THAMES WATER, which has a £15.6 billion (€18.2 billion) debt pile, must prepare and negotiate a business plan with Ofwat before May 23.

This is when the water services regulator holds its last board meeting prior to announcing how much companies will be able to charge customers.

Before then, the beleaguered water company intends to publish a five-year spending plan which, once it has been approved by the Thames Water board will talk to lenders as its looks for ways of funding its rescue proposals.

Steel deal SPANISH steelmaker Acerinox is buying US nickel and cobalt alloy specialist Haynes in a €740 million deal.

The operation carried out by Acerinox’s US subsidiary North American Stainless (NA), has approval from US anti-trust regulators and was ratified at the Haynes’ shareholder meeting in April, Acerinox said. A routine revision of Haynes books by external auditors is all that remains pending.

The purchase will be fully-funded with existing cash on Acerinox’s balance sheet, it revealed when the deal was announced in February, and the takeover is expected to be completed by the third quarter of 2024, the Spanish company said.

Win some LA LIGA, the 42 professional football teams which belong to Spain’s First and Second Division, are in the black for the first time in two seasons.

Fully recovered from the pandemic, the teams reported an accumulated net profit of €200 million between them for their financial year ending June 2023.

Nevertheless, Barcelona, whose corporative operations amounted to €808 million and who ended the season with a €300 million profit, generated much of these gains, La Liga revealed.

La Liga also predicted that the present season would almost certainly return to negative figures in 2023-2024, with losses of approximately €300 million.

Orange alert CATALUÑA-BASED Miura intends to sell off Citri&Co, Spain’s largest citrus fruit company.

After several months of sounding out the markets, the private equity firm has commissioned investment bank Lazard to organise the €1 billion sale of a group created in 2016 from the long-established Castellon company Martinavarro plus the later addition of Rio Tinto and other, smaller operators.

Citri&Co, present in 70 countries, has a workforce of 12,000 and 22,000 hectares of land under production with Spain accounting for 30 per cent of its earnings.

Reboot needed DR MARTENS shares plunged 29.4 per cent as the bootmaker issued its fifth profit warning since 2021.

The company is expecting a tough time with rising overheads and falling US sales as shares slump to 62 pence (approximately €0.72), compared with £3.70 (€4.32) when Dr Martens was floated three years ago.

The outlook was “challenging,” a spokesperson admitted.

Chief executive, Kenny Wilson, in place for six years, will leave at the end of the financial year to be replaced by Ije Nwokorie, currently chief brand officer.