Greenyard clears mountain of debt

Greenyard continues to grow and is becoming more profitable thanks to the corona crisis. The fruit and vegetable supplier uses the current climate to clear its towering mountain of debt.

Less debt, more climate

Greenyard is regaining breathing room: bit by bit, the Belgian company is reducing its debt burden. The fruit and vegetables supplier now “only” has four times as much debt as profit (EBITDA), six months sooner than the company anticipated. This is considerably lower than last year when it was 7.2 times the amount of profit. At the end of the next financial year (2021/2022), the debt must not exceed three times the profit.

To achieve this, the fresh vegetable supplier of Delhaize and Rewe, among others, is preparing for refinancing. The company believes the negotiations will go more smoothly thanks to the good financial results. Greenyard has indeed become profitable since the last quarter and expects to achieve a positive gross profit of between 106 and 110 million euros this year.

Furthermore, the company’s turnover rose by 10.3 per cent over the past half-year, while the profit margin increased with 2.6 per cent. The Antwerp based company wants to make use of this trend by investing in sustainability: Greenyard has declared four specific commitments regarding climate measures, water management, responsible purchasing and ‘zero waste’ objectives. A new sustainability director has also been appointed.