The four Loriente Piqueras brothers launched a meat business in Tarancón (Cuenca) at the end of the 1970s that, almost 50 years later, has become a giant that earns more than 1,000 million euros. Industrias Cárnicas Loriente Piqueras (Incarlopsa) had a turnover of 1,169 million in 2023, a record that implies having doubled its turnover in a space of only seven years. Something that owes in large part to its alliance with Mercadona, of which it has been a supplier since 2001 and to which it supplies ham, sausages and fresh pork.
“We rely on the growth of our clients, and we will continue to grow with them until they need it. Mercadona is a good ally and the family is delighted to be with them,” says Jesús Loriente de la Ossa, CEO of Incarlopsa since this year, in an interview with this newspaper, after taking over from his cousin Clemente Loriente after 10 years in the position.
The new chief executive intends to continue the upward trend in sales. Incarlopsa expects to exceed 1,200 million euros this year, and it is on the near horizon to reach 1,500, although without setting specific deadlines until the new strategic plan is finalized. Of course, Loriente focuses on growing in a “sustainable way”, through products with greater added value. “We don’t just want meat. “We want to sell sausages, ham, innovations, make cooking easy for the consumer, be attentive to new flavor trends… Make products that make life easier for the consumer.”
59% of Incarlopsa’s sales are made with Mercadona. A high percentage, but a few years ago it exceeded 75%. In the opinion of Jesús Loriente, Mercadona “provides margins that are very aligned with or above the market,” and he does not feel uncomfortable with the dependence on Juan Roig’s supermarket group: “It is a good ally.”
The Tarancon company has pending challenges. The main one, improve your profitability. In 2023, its consolidated net profit barely represented 1.8% of its sales: 21.2 million for a company that had a turnover of 1,169. Between 2020 and 2023, ebitda has fallen by almost 37%. By 2024, Loriente foresees a growth of between 7% and 8% in this variable, exceeding 50 million. “These are figures that can be improved. We have been affected by large cost increases. “No one thought that electricity would reach the levels it reached,” explains the executive, who links the strategy to higher-value products as a lever to improve profits. Also internationalization, which represents 15% of sales, with a decided commitment to the US and Mexican markets.
Another challenge is the strength of the balance sheet. In 2023, Incarlopsa refinanced around 260 million euros of debt. As part of the operation, it sold part of its machinery to financial institutions, which it uses on a rental basis. “It was just another financing tool that was considered appropriate at the time,” Loriente says. “As soon as we can we will try to buy them back,” he adds. It recognizes that these debt levels are excessive, and one of the strategic priorities will be to reduce them to below three times the EBITDA.
Where there will be no movements, says the executive, is in the family structure of the company. The four branches share equally 100% of Serlopi, the company that owns Incarlopsa, which has been in the eye of different investors. “Right now, we don’t talk about it in the family. The only approach is to continue as we are now.”
The threat of Chinese tariffs
Pork has recently become a weapon in trade tensions between China and the European Union, due to tariffs on electric cars manufactured in the Asian giant. For months, his government has been investigating alleged subsidies to the European pork sector, where Spain stands out as the main exporter. Incarlopsa began selling products to that country in 2020, and accounts for 25% of its exports. “We are expectant. We, and the entire sector, have done our homework and have delivered all the documentation that has been requested of us. The imposition of tariffs could really affect us,” says Jesús Loriente.
