German fresh produce giant Landgard has reported a mixed set of financial figures for 2013, including a pre-tax loss of €27.9m and a 10 per cent fall in annual revenue to €1.83bn – the latter mainly as a result of divestments made during the year.
However, the group did manage to boost its earnings before interest, taxes, depreciation and amortisation to €40.2m and earnings before interest and taxes (EBIT) to €10.5m, observing also that €8.4m of the pre-tax loss was due to 'negative weather effects and extraordinary charges related to' its on-going restructuring.
In fruit and vegetables, Landgard's berry sales were hampered by significant crop losses that led to a reduction in marketable fruit, the company said.
Marketing of German vegetables also declined, especially for brassicas and greenhouse-grown items like tomatoes and peppers.
But the development of fruit supply from Spain showed promise especially for stonefruit, the group's directors observed, with a greater focus on quality and new strategic partnerships apparently yielding an 82 per cent increase in turnover, equivalent to €4m, in the segment.
'Our business model is sound, and almost 90 per cent of sales are profitable,' commented Landgard's chairman Armin Rehberg. 'But the goal must be to continue to regain lost confidence to shape the future of Landgard together. This applies to the flowers and plants sector, but especially in the category of fruit & vegetables.'
According to Landgard, the company is now operating profitably thanks to recent efforts to improve or divest under-performing units and to integrate major acquisitions made over the past decade, such as Leverkusen-based importer and ripener Walter Pott.
During the past year, Landgard has sold its UK division, which was bought out by its management in April before being rebranded as Verde Horticulture and subsequently sold to Butters Group, thus forming the UK's largest plant supplier.
As a result of this and other changes, the group finally appears to be back on an even keel as far as its finances and future commercial viability are concerned.
'The financing of Landgard is secured to the end of February 2016,' Landgard's directors said in a statement. 'Banks, credit insurers, factors and lenders are behind Landgard.'
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