FRINSA MAINTAINS PROFITS DESPITE SALES SLOWDOWN
Frinsa, the Ribeira-based cannery that specializes in supplying private label products to large distribution groups, has lost revenue, but not profits. The company founded by Ramiro Carregal closed last year with a turnover of 546 million, despite a 42 million drop in sales compared to the Covid year. The cut in sales relegates the group to third place among the large Galician canneries, since Calvo, which it had surpassed for the first time in 2020, reached 555 million in revenues, according to a press release.
Ramiro Carregal’s group cedes its position as the second Galician cannery by revenues to Calvo, but distributes 22 million in dividends due to its high profitability. However, the Carregal family’s cannery continues to be unbeatable in terms of profitability. Profit reached 34.1 million in 2021, up from 33 million in the previous year. They are equivalent to eight times the profits of Jealsa, which last year saw its activity disrupted by the fire at its Boiro plant. Frinsa’s operating income grew to 45.8 million and ebitda exceeded 58 million.
This balance enabled the group to distribute 22 million in dividends, the same amount as in the previous year. In January it approved a payment of 2 million, while in June and September it agreed to two further dividends of 10 million each. The company is controlled by the founder, Ramiro Carregal, with 64.10% of the capital, while his son, Jorge Carregal Varela, holds the remaining 35.9%.
A supplier to Lidl, Carrefour and DIA, the Ribeira-based cannery explains in its Statement of Non-Financial Information that it is the seventh largest buyer of tuna in the world, processing more than 150 gross tons per year, representing more than 580 million cans sold. Although its main business is to nurture the distribution brand of large groups, it also markets its own brands -Frinsa, Ribeira, Seaside and The Nice Fisherman- and has a dozen gourmet canned food stores under the La Conservera brand.
Although Frinsa has consolidated its position among the three largest Galician canneries, especially as a result of the expansion it has promoted since 2015, last year it slimmed down. The drop in revenues occurred both in the domestic market, where it earned 220 million compared to 228 million in 2020, and in sales to the rest of the EU. Here the decline was sharper, from 344 million in 2020 to 305.6 million last year. The group’s average workforce also decreased from 1,558 to 1,426 employees.
Despite this, the cannery continued its expansion by establishing a new subsidiary in the United States, Frinsa USA. It should be noted that all the group’s subsidiaries, located in Italy, Singapore, France, Germany, Poland, Romania, the United Kingdom and Portugal, obtained positive results. Also in the neighboring country, where the company acquired its second factory when it bought the Portuguese cannery A Poveira, with a plant in Povoa de Varzim.
