Greenyard saw its profits rise sharply in the first half of the financial year. The Belgian fruit and vegetable processor is reaping the benefits of its new strategy, co-CEO Hein Deprez says.
Stagnant turnover, higher profit
Between April and September, Greenyard recorded a turnover increase of 0.8 % to 2.19 billion euros; on an organic basis, revenue rose by 1.8 %. The Fresh division grew by 1.1 %, thanks to the successful expansion of the product and service range from the integrated customer relationships. They now represent three-quarters of the Fresh division.
The Long Fresh division (frozen foods) grew organically by 4 % as it benefited from a moderate recovery in sales to clients in foodservice and continued growth in the convenience and fruit segments. In the United Kingdom, however, sales were held back by disruptions in the supply chains. Partly as a result of this, reported revenues within Long Fresh decreased by 0.4 %.
While turnover remained relatively stable, the fruit and vegetable group was able to increase its profit. The adjusted gross operating profit (EBITDA) rose by 7.5 % to 82.6 million euros. The net profit of 8.5 million euros was a lot higher than the 1.1 million euros in the same period last year.
Investments
Over the past six months, Greenyard invested 36 million euros in the further automation of packing and sorting lines and additional ripening and assembly capacity in the Fresh segment. The company also implemented an ultramodern citrus sorting line in its distribution centre in Ridderkerk, near Rotterdam, as well as a new machine room with 100 % heat recovery in France.
“The financial results of this first half-year underpin the successful roll-out of our strategy”, Deprez explained. “We will continue to build and leverage our unique position in the healthy food ecosystem. Greenyard is in both segments right at the heart of the current transition towards more plant-based diets.”
Greenyard’s outlook remains unchanged: the company is counting on an adjusted EBITDA of 165 million euros for the current financial year. By the 2024-2025 financial year, that operating profit should reach at least 190 million euros.
