As results in the first half of its financial year were better than expected, Belgian fruit and vegetable producer Greenyard has decided to cancel the announced sale of its "Prepared activities". Moreover, a search for fresh capital will also be halted, the company announced during the presentation of its half-year results.
Respite from banks
The company has also been granted extra time to reduce its debts: the banks have pushed that deadline to the end of 2021. The total amount of debt amounts to more than half a billion euros, Belgian newspaper De Standaard writes.
"Due to the continuing and faster than anticipated recovery during H1, sharp focus on the Transformation Plan, combined with the expected positive effects of the new partnerships, are expected to enable Greenyard to further deleverage on its own strength with its current portfolio combining Fresh, Frozen and Prepared activities. This organic recovery obviates the need for a capital increase or sale of the Belgian Prepared activities", the company says in a press release.
By the end of October, Greenyard had already announced that its profits would turn out to be higher than expected. Although turnover for the first six months of the split financial year was 0.5 % lower than for the same period last year, gross operating profit increased from 41.2 million euros to 47.6 million euros (+ 15.7 %) over the same period. Greenyard now expects a gross operating profit of 88 million to 93 million euros for the whole year. The company is committed to reducing its current debt ratio from 7.2 to 4 by the end of 2021 without external help.