Fresh produce giant Greenyard has reported on a difficult third quarter (Q3) of the year, with results lower than expected due to "continued pressure in the food retail landscape", particularly Germany and Belgium.
Sales for the period fell 4.5 per cent behind, Greenyard explained, with an impact on margin generation.
As a result, the company has revised its REBITDA forecast for AY 2018/19 to a range of €60-65m, after deconsolidation of its Horticulture segment, which was sold at the end of 2018.
"After summer, results of September and October picked up," Greenyard stated. "Unfortunately, these early signs of recovery reversed in November and December.
"On one hand, this was caused by the competitive retail landscape with further increasing price pressure in Fresh product categories, predominantly in Germany and Belgium," the group added. "On the other hand, continuously increasing quality and service requirements from retailers in Fresh and in Long Fresh are pushing up suppliers’ cost and waste levels."
As a result, Greenyard has announced the installation of a transformation team, lead by Marc Zwaaneveld, tasked with developing a comprehensive turnaround plan which will include actions that will be" implemented immediately".