Greenyard advantages from the excessive demand for wholesome meals
The increased consumer awareness for a healthier life is bearing fruit Grünhof. The Belgian fruit and vegetable giant exceeded expectations in the Covid year and raised its profit forecast for the coming year.
Consumers buy more fruits and vegetables
In the interrupted fiscal year 2020/2021, which ended on March 31, Greenyard recorded an increase in sales of 8.7% to 4.4 billion euros. The “Fresh” segment grew by 10.1% to 3.59 billion euros. Consumers are much more interested in healthy foods, the company says. As a result, they spent more on fruit and vegetables on average. In addition, they more often combine different types of fruit and vegetables.
Sales of “Long Fresh” rose by 3.2% to EUR 823.5 million. The volume loss in gastronomy caused by the Corona measures was largely offset by significant volume increases with retail customers, new sales contracts and a better product mix.
Higher sales and improved efficiency are also reflected in the earnings figures: The adjusted gross operating profit (EBITDA) rose by 17.6% to 156.9 million euros – and the net profit amounted to 1.2 million euros. In the past financial year, there was an annual deficit of 68 million euros.
“We had a strong year in every way,” said Co-CEO Marc Zwaaneveld in a press release. “The organization of the group has been adapted and the mindset and culture changed to meet the changing needs of our customers and end users. The capital structure has been strengthened and the volatility of profitability has been significantly reduced.”
Based on solid results in the last quarter, Greenyard has revised its earnings guidance for the current fiscal year. The fruit and vegetable group is now anticipating an adjusted EBITDA of 165 million euros after the original 160 million euros.