Greenyard announces dip in sales of 1.7%

Global market leader in fresh produce Greenyard has announced a slight dip in sales over the past twelve months. In the year ending March 31st 2018, the group’s net sales declined by 1.7% to €4.175 billion. Results were below expectations due to pricing pressure in the group’s main markets and a number of one-offs. Volumes were lost in some core fresh markets. Lower volumes led to a fall in fresh sales of 2.4%, which were also affected by an unfavourable sterling exchange rate.  Meanwhile, horticulture sales were up 20.2%, mainly thanks to the acquisition of Mykogen and favourable exchange rates.

The group’s gross operating profits (REBITDA) decreased by 3.8% to €140.2 million, mainly as a result of the aforementioned losses in the fresh category. Long Fresh continued to improve, even in difficult markets, mainly thanks to an improved product mix and increase in prices in the frozen segment. However, these improvements were largely offset by rising raw material costs that could not be passed on to customers under annual contracts. Profits in the horticulture segment were up by €1.5 million, which was somewhat offset by the postponement of the expected spring sales season in March due to the bad weather in Belgium.

Greenyard has announced that it expects REBITDA to rise by 10% over the coming year. In its statement, Greenyard said,

“We remain committed to steer our organisation closer to our customers to jointly create a strategic view on fruit and vegetables in our mutual interest. By keeping our focus on creating added value in partnership with and for our growers, our retailers and our consumers, we are confident that we can make the difference in strengthening our position as a global leader in fruit and vegetables in all its forms”.