As it posts its first quarter results, Belgian frozen vegetables producer Greenyard says it has turned a page and is headed for more profitability in the second half of its broken financial year.
In its first quarter (April to June), Greenyard saw its turnover drop 2.6 % compared to the same period last year, to 1.03 billion euros. The fresh fruit and vegetable department lost 4 % in turnover as grapes, melons and citrus fruits suffered immense pressure on their prices and the company cut loose some loss-causing contracts. The frozen and tinned food department raised its turnover by 4.1 % to 181.9 million euros as Greenyard succeeded in expanding its customer portfolio in both food service as the food industry.
For the first and second quarter put together, the company aims for an adjusted EBITDA of 43.0 to 45.0 million euros, improving significantly compared to last semester's 23.3 million. The recovery is due to a "rigorous implementation of the Transformation Plan, with a strong focus on margin and profitable volumes and rightsizing the overhead cost base." Moreover, the company expects benefits from this plan to be even greater during the second semester of the financial year.
Greenyard has also announced that Tom Borman has left the board of directors, six years after joining the company. In 2013, the South-African former coal magnate helped the then management to buy out private equity fund CVC.