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Consolidated Financial Analysis
All prospects point toward a contraction of the
Portuguese and Spanish economies in a context
in which the macroeconomic adjustment goals,
specifically regarding budgets, will continue to
affect the evolution of internal demand.
The budget consolidation measures involve: (i)
elimination of holiday and Christmas allowance
payments in the state sector; (ii) cuts in salaries
and the highest pensions; (iii) increased taxes
on families; and (iv) lower income tax benefits.
These, along with higher foodservice VAT and
uncertainty regarding additional new measures,
will have a very negative impact on foodservice
consumption.
In this context, lower consumption trends are
expected to worsen in 2012, with increased
demand for cheaper products (and a consequently
lower average receipt). Additional pressure will
be felt on sale prices and due to the natural shift
away from eating out to meals at home.
Ibersol believes it is ready to face another decline
in sales, a result of preparations begun in the
second half of 2011. The entire organization has
responded with internal austerity measures with
a view to streamlining resource use. We plan to
Outlook
continue the work of informing and working with
our suppliers and partners, namely the shopping
centres, to make any necessary adjustments to
either opening times or foodservice areas.
Regarding financing, the financial market is
expected to remain beset by liquidity problems,
with reduced availability of funds for the
economy. The tendency for high spreads should
consequently continue. In compensation, the
ECB interest rate is expected to come down.
Regarding expansion, we keep our eyes open
for opportunities and ways to strengthen the
competitive position of the brands we operate.
In 2011 we envisage that Ibersol may open
about five units and implement a renovation
programme for around ten units. It may have to
close some units, especially those whose contract
renegotiation process hinders efforts to ensure
viable operation vis-à-vis sales plateaus.
Lastly, we can announce the opening of the
first unit in the Angolan market, which should
take place in the next two months, as soon as
various administrative hurdles are overcome.
We continue to evaluate alternatives with a view
to identifying and negotiating two more units.