Despite gains in sales, the stuffed olive producer Hispaniola still posted red numbers in 2022. Costs rose sharply, especially for raw materials and, more broadly, energy expenses. The company scrutinized its losses for the seventh year in a row, identifying the ongoing strain from higher input prices as the principal driver.
This pattern is echoed in the official balance sheets filed with the Trade Registry by the Alcoy-based firm, reflecting the broader impact of the Ukraine war on electricity and gas costs across many sectors.
According to the report, Hispaniola increased its turnover by as much as 7.2 percent in the referenced year, following a 17 percent drop in 2021, which allowed the firm to clear the 60 million euro barrier. The exact figure for 2022 stood at 63.3 million euros.
Yet, despite higher revenue, losses expanded markedly, rising from 923,753 euros to over 3.2 million. Management explains this surge as a consequence of the relentless rise in raw material prices and, above all, the increase in energy costs, underscored by the management report as a contributing factor to persistently negative earnings.
Additionally, the company notes that price increases could not be fully passed through to customers through new tariff models. In the management report, the executives stated that there was “resistance to further price increases,” a situation that forced the firm to narrow margins and deepen red figures.
Despite repeated losses in recent years, Hispaniola maintains a stable financial appearance. The company reports a strong level of equity, with shareholder funds exceeding 29 million euros, a figure that helps cushion performance swings according to the document.
To address the downturn, the company indicates that 2023 accounts are on track to close with a profit, although specifics are not disclosed at this time. The anticipated improvement is expected to come from better purchasing management, enhanced process optimization, and, importantly, a gradual alignment of prices with the new cost reality, according to official company sources cited in the report.
The company also noted that earlier announcements of substantial turnover growth would reinforce its leadership position and generate additional revenue that would positively influence results, as described in the management documents cited by the firm.
national market
As the recovery steps forward, Hispaniola’s 2022 balance sheet marks the seventh annual loss since it first entered the red in 2016. The year 2021 showed resilience, signaling that the company could weather the downturn, but the energy-cost surge linked to geopolitical tensions disrupted that progress.
Hispaniola is recognized as one of Spain’s leading stuffed olive producers and is among Mercadona’s key suppliers in this segment. The company notes that, up to that point, about 98% of its sales were domestically oriented, with exports accounting for roughly 2%. In 2022, the workforce averaged 143 employees, highlighting the scale of operations in its national market.
At the heart of the earnings challenge lies a simple truth: cost inflation, especially in energy and materials, compresses margins in a sector with tight competitive dynamics. Market observers note that the company’s strategy to safeguard profitability hinges on purchasing efficiencies, production optimization, and a measured approach to price adjustments that reflect rising input costs while preserving demand in the core market. In the near term, the firm’s financial health will depend on its ability to convert higher volumes into sustainable profits and to translate, step by step, the cost realities into pricing structures acceptable to retailers and consumers alike. This balance remains a focal point for Hispaniola as it navigates a market shaped by inflationary pressures and geopolitical upheaval, with the underlying goal of stabilizing earnings while maintaining leadership in its category. [Cited from company management reports and market filings]