The Greenery has posted a positive net result despite plummeting average fresh produce prices last year, as it unveils its end of year results for 2009.
The Dutch produce supplier claims its focus on cost control, efficiency measures and the intensification of its customer service helped compensate for a 15 per cent drop in average fruit and vegetable prices. Its operating result climbed from €10 million (£8.99m) in 2008 to €14m in 2009.
General manager Philip Smits said: “In 2009, we started a continuous improvement and cost control process. Our aim is now to further strengthen our market position by intensifying and refocusing our services for customers.”
The Greenery launched its new two-pronged strategy at the beginning of 2009, focusing on operational excellence and category leadership. The operational excellence programme comprised elements such as automation of business and packaging processes, streamlined logistics and transport processes, and reorganisation of the sales structure. Various measures, including the introduction of a new rates and levies system, have helped reduce the level of costs for growers.
Over the financial year 2009 as a whole, The Greenery posted a net profit of €7.4m. Prices for fresh fruit and vegetables in 2009 were 15 per cent lower, on average, than in 2008 due to economic crisis, the decline of a number of The Greenery’s export markets and oversupply on the European market. As a result, The Greenery’s total turnover fell from €1.8 billion to €1.6bn.
Profit allocations helped the equity capital of The Greenery to increase to €63m in 2009. As a result, the solvency figure rose to 12.3 per cent and the company’s capital base increased by one per cent to 40 per cent.
Looking ahead, The Greenery expects 2010 to be another difficult year for the Dutch horticultural sector, so it has decided to maintain its focus on cost efficiency.
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