2012 was a year of challenges, the second with austerity
programme readjustments consequent to external aid,
which aggravated the economy’s weaknesses. As could
be expected, a practical effect of the austerity measures’
impact was a major contraction of liquidity, sharp rise in
unemployment and lower salaries, with the resulting fall
in consumption.
Portugal is one of the European countries where restau-
rants contribute the most to employment and the econ-
omy. For this reason, the decision to increase the sector’s
VAT to the highest rate in the group of European coun-
tries (at the level of Greece and Romania) as opposed to
the lowered rates imposed in France and Sweden, was
predictably disastrous for the sector, with very onerous
consequences for the country.
VAT is a tax borne by consumers, but given the impos-
sibility of passing it on, most operators faced the need to
lower margins to avoid shifting the burden to consumers,
to thereby forestall any further drop in demand.
The recessive spiral in the Portuguese economy caused
by the increased restaurant VAT rate was one of the
most disruptive aspects felt (this effect was unwisely
downplayed) and had very harmful consequences for
employment.
The change was implemented during a period of major
uncertainty arising from a set of very harsh measures,
significantly amplified by media coverage.
This situation has lowered confidence levels, making the
consumer’s decision-making process more complex and
selective, leading to an effective drop in demand which
has also brought about a growing change of consump-
tion habits and rhythms. An identical panorama charac-
terizes the Spanish market, although political sensitivity
to changes in the restaurant VAT rate has led to other
options.
For Ibersol Group, the economic situation forced the
assumption of a position centred on three major axes:
readjustment and modernization of the portfolio, en-
hanced value of human resources and, finally, expanding
the markets where it operates by means of internation-
alization to the Portuguese language countries and the
African continent.
In each of these axes firm steps were taken to reach a
new horizon of business and social accomplishment, in
order to best deal with the obstacles deriving from the
sharp downturn in internal demand.
At a time when the Portuguese are asked to make sac-
rifices it is important for Ibersol, the biggest Portuguese
multinational firm operating in the modern restaurant
area, to assure its stakeholders a vision of the future cen-
tred on very concrete pillars of action: to guarantee quali-
ty, safety and solidity, all in a context of sustainability that
is the Group’s major strategic access.
To the multi-concept Group matrix we add a still broader
multinational and internationalized vision as guarantee
of a sustainable investment strategy enabling us in the
near future to confront fluctuations in major economic
areas by committing to different market typologies and
geographies.
Introduction
4
MANAGEMENT REPORT
