Pescanova's plant in Chapela, Galicia. (Photo: Pescanova)

Pescanova’s reorganisation would save EUR 10 million, according to PwC

SPAIN
Wednesday, October 30, 2013, 23:30 (GMT + 9)

For PricewaterhouseCoopers (PwC), Pescanova’s auditing firm, the reorganisation of the Galician multinational firm will imply annual savings amounting to around EUR 10 million.

This was confirmed to the newspaper La Voz de Galicia by sources familiar with the report prepared by PwC, which will be presented next week.

The document highlights the existence of organizational and functional inefficiencies: duplication of positions and departments.

The auditing company estimates the gross operating profit (EBITDA) of Pescanova will not reach EUR 80 million this year, although it could be at EUR 150 million in 2014.

PwC also believes that eliminating the duplications to save EUR 10 million would have an initial cost of EUR 15 million.

Anyway, the consulting firm argues that the amortization of such spending would be completed in a year and a half. After that time, there would be significant recurring savings.

In addition, PwC’s preliminary plan does not refer to any reduction in Pescanova’s debt, despite the expected percentage for the firm to go ahead would be between 60 per cent and 70 per cent.

On the other hand, the president of the National Securities Market Commission (CNMV), Elvira Rodriguez, advocated the continuation of the Galician multinational firm, even if it were with a "smaller" size.

"It's a Spanish brand that is worthwhile," stressed Rodriguez.

Meanwhile, Pescanova’s reorganisation administrator -- Deloitte -- reported that the sales during the first seven months of the year amounted to EUR 700 million. Projections indicate that by the end of the year 2013 some EUR 1,400 million could be reached, taking into account the Christmas season, the agency Europa Press reported.

Sources that are familiar with the viability plan devised by PwC added that "the three levers that will be used are centered in the entry of fresh money with new partners, the capitalization of liabilities in shares and the debt reduction.”

There is agreement as to the fact that to avoid liquidation, Pescanova must recapitalize itself.

Related article:

- Pescanova’s former chairperson sues the company for 'unfair dismissal'

By Analia Murias
[email protected]
www.seafood.media

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