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Deoleo, the world's largest olive oil bottler, reported a net loss of €54.5 million ($59.1 million) for 2024 despite a 19% rise in sales revenue to €996 million ($1.08 billion), with the shortfall driven mainly by ongoing legal disputes, according to Olive Oil Times.
In addition to its dispute with Italian customs authorities over back taxes and fines, the company faced challenges securing olive oil supplies and falling prices, according to a report published on 3 March.
Nevertheless, the company posted positive financial indicators and was exploring strategies to mitigate the potential impact of tariffs, particularly in the US market, the same source said.
Officials pointed to ongoing legal cases, including litigation against its Italian subsidiary Carapelli Firenze, as the main driver of the company's losses, the report said.
The dispute stems from Carapelli's use of a legal procedure to import olive oil through a Swiss subsidiary, which was then bottled in Italy and re-exported outside the European Union, according to Olive Oil Times.
Deoleo said it understood this practice fell under an exemption provided for in EU customs law, allowing it to avoid paying duties on olive oil imports.
However, Italian customs authorities opened a case against Carapelli in 2014.
Following two unfavourable rulings, the company said it would set aside €64.7 million ($70.1 million) to cover back taxes and fines should the rulings be upheld.
At the time the report was prepared, Deoleo was awaiting a decision from Italy's Supreme Court on whether it would hear the case.
Although Switzerland is not an EU member, it has a free trade agreement with the bloc.
Deoleo's chief financial officer, Enrique Vecchi, was quoted as saying that Italian customs authorities requested the first payment in February.
"The annual result is very negative, but 90% of these losses relate to the provisions we made for litigation in Italy," Vecchi said during a call with journalists, adding that the company has "very strong arguments" should the Supreme Court decide to hear the case.
Aside from the legal issues, Vecchi described 2024 as "difficult and complex".
He added that the company faced difficulties securing olive oil supplies early in the year, with stocks nearing zero after a second consecutive poor harvest in Spain and the Mediterranean region, according to Olive Oil Times.
In the second half of the year, the company was affected by a steady decline in prices as many countries in the region prepared for a better harvest, the report said.
Vecchi said olive oil consumption fell by 8% in Spain and the United States, and by 2% in Italy during 2024.
Nevertheless, the company reported a 10% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA), which reached €33.4 million ($36.2 million).
Source: Olive Oil Times