Annual Report and Consolidated Accounts 2015
e) Capital risk
The Company seeks to maintain a level of own capital appropriate to its principal
business (cash sales and supplier credit) and ensure its continuity and expansion.
The balance of the capital structure is monitored based on the financial leverage
ratio (defined as net remunerated debt / net remunerated debt + equity) with the
aim of staying between 35% -70%.
Environmental
This area of risk management is coordinated by the Quality Department and its main
focus is on implementing the policy deriving from the Ibersol Sustainability Princi-
ples which ensures that processes and procedures are applied in the environment.
Adoption of good environmental management practices is a matter of concern to
Ibersol’s Board of Directors, which promotes a responsible, proactive approach to
resource and waste management.
The procedures set forth in Ibersol’s Standards Manual as regards environmental
matters are focused mainly on the rational use of electricity and the recycling of
used oil and packaging.
Legal
Ibersol and its businesses have a legal function, which works full-time, in coordina-
tion with the other central and business functions, in order to preventively protect
the Group’s interests, while ensuring strict compliance with the Group’s legal duties.
Legal advice is also obtained, at national and international level, by recognized out-
side experts.
Sector-specific
The recovery of private consumption, after the severe disruption seen in recent
years, mainly in Portugal, will continue to affect sales in restaurants. To mitigate
the impact on its results, the company has implemented rigorous cost control, with
monthly monitoring of market trends and subsequent reviews of resource planning,
in order to mitigate the impact of the consumption reduction.
Operating as it does in the food service business, the company is also subject to the
risk of epidemics, disruptions in raw materials markets and changes in consumption
patterns, which can have a material impact on the financial statements.
163
