Prospects
All prospects point toward a contraction of the Portu-
guese and Spanish economies in a context in which
macroeconomic adjustments, specifically involving re-
duction of budget deficits, will continue to affect inter-
nal demand performance.
The budget consolidation measures involve: (i) elimi-
nation of holiday allowance payments in the state sec-
tor; (ii) cuts in the highest pensions and salaries; (iii)
increased taxes on families; and (iv) lower income tax
benefits and uncertainty about the application of addi-
tional measures. These will have a very negative impact
on foodservice consumption.
In this context, the lower consumption trend is expected
to worsen in 2013, with increased demand for cheaper
products (and consequently lower average revenue).
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, although the adjustment margin has been sub-
stantially reduced. We continue to keep our suppliers
and partners informed, specifically the shopping cen-
tres, with a view to fitting supply to demand.
Regarding financing, the financial market is expected to
remain beset by liquidity problems, with reduced availa-
bility of funds for the economy. The tendency for higher
spreads will probably end; it is to be expected that the
ECB interest rate will come down again.
Regarding expansion, we keep our eyes open for oppor-
tunities and ways to strengthen the competitive posi-
tion of the brands we operate. In 2013 we envisage that
Ibersol may open about 3 units on the Iberian Penin-
sula and implement a renovation programme for some
units and close others, particularly where the contract
renegotiation process hinders efforts to ensure viable
operation.
We will study performance of the units operating in the
Angolan market and probably open two more units dur-
ing the financial year, if so justified by the performance
of the current ones.
ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2012
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