Increased consumer awareness regarding healthier living is bearing fruit for Greenyard. The Belgian fruit and vegetable giant performed beyond expectations during the Covid year and raised its profit forecast for the year ahead.
Consumers buy more fruit and vegetables
In the 2020/2021 broken financial year, which closed on 31 March, Greenyard recorded an increase in turnover of 8.7 % to 4.4 billion euros. The ‘Fresh’ segment grew by 10.1 % to 3.59 billion euros. Consumers are much more interested in healthy food, the company says. As a result, they spent more on average on fruit and vegetables. In addition, they more often combine different types of fruit and vegetables.
Turnover within ‘Long Fresh’ rose by 3.2 % to 823.5 million euros. The volume loss in food service caused by the coronavirus measures was compensated amply by significant volume growth in retail customers, new sales contracts and a better product mix.
Profitability returns
Higher sales and improved efficiency are also reflected in the profit figures: adjusted gross operating profit (EBITDA) rose by 17.6 % to 156.9 million euros – and net profit amounted to 1.2 million euros. In the previous financial year, there was still a net loss of 68 million euros.
“We had a strong year, on all aspects”, co-CEO Marc Zwaaneveld stated in a press release. “The group’s organisation has been tailored and the mindset and culture changed, to meet the changing needs of our customers and end-consumers. The capital structure has been strengthened and the volatility of the profitability significantly reduced.”
Supported by solid results in the last quarter, Greenyard is revising its profit forecast for the current financial year. The fruit and vegetable group is now counting on an adjusted EBITDA of 165 million euros, up from the original estimate of 160 million euros.
