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Weather hits Greenyard's fresh result

Belgian group reports on its first half results, with operating profit down but net result climbing

Weather hits Greenyard's fresh result

Marleen Vaesen

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Global fresh produce organisation Greenyard has reported on its results for the half-year 2017/18 ended 30 September, with sales remaining fairly stable but operating profit falling.

Overall group sales dropped 2.4 per cent to €2.1bn, while the group's fresh segment saw sales fall 2.5 per cent.

Recurring EBITDA dropped 5.5 per cent, or €4.3m, to €73.4m. Fresh dropped by €2.6m, largely driven by price pressure on bananas, combined with challenging sourcing and lower volumes year-on-year.

Net result came in at €11.7m. Excluding the non-cash impact of the fair value adjustment on the convertible bond, net result arrives at €12.5m, up 84 per cent year-on-year.

"We are pleased with the good improvement of the net result of our company further benefiting from the refinancing and ongoing tax savings," said CEO Marleen Vaesen."At the same time, our net debt continued to decline despite high investments in the growth of our business. Nevertheless, both in Fresh and Long Fresh, adverse weather conditions hindered our operations and hence financial performance.

"Going forward, we remain determined to keep our focus on profitable growth, and therefore accelerated a number of initiatives to improve profitability," Vaesen continued. "Actions taken include rightsizing of our Fresh operations in Poland, Germany, Belgium and the UK. These actions lead to more streamlined operations in these countries and lower overhead costs. These initiatives are combined with investments in new state-of-the-art operations that ensure that Greenyard stays at the forefront of our sector.

"To conclude, we remain confident Greenyard has the right strategy and priorities in place to generate profitable growth and further strengthen our position as a global leader of fruit & vegetables in all its forms," Vaesen concluded.

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