German grower cooperative Landgard has posted its highest ever profits, marking an impressive turnaround for the business despite difficult market conditions.
Earnings before interest, taxes and depreciation increased to €55 million at the German fresh produce marketer in 2016, while operating profit reached 28.6 million – the highest level in the company’s history.
Pre-tax profits also rose by nearly 50 per cent, increasing from €5m to €7.2m.
This rise in profits at the producer cooperative was driven by both sides of the business – fruit and vegetables and flowers and plants – with 30 per cent sales growth in fresh produce over the past two years.
In flowers and plants, meanwhile, sales rose by 6.5 per cent to more than €1.9 billion, increasing ahead of the overall market.
"The result shows that our strategy of concentrating on our core business and consistently lowering material and personnel costs was correct," said Armin Rehberg, chairman of the board of Landgard.
"Landgard has finally achieved the turnaround and is back on the road to success as a responsible market leader under difficult conditions,” he added.
“We are the metronome for the whole industry with our concepts, innovations, sustainability and digitalisation strategy for cooperative marketing. "
The annual report was presented to company representatives at the 2017 AGM on 28 June, with the company forecasting further sales and profit rises in 2017.