Greenyard has published its yearly results and can report positive results over the financial year of 2019/2020. The hopeful figures are driven by the Transformation Plan.
After a disappointing financial year of 2018/2019, due to the listeria contagion in Hungary, supply problems due to drought and pressure on prices for fresh fruit and vegetables, the company drew up a Transformation Plan. The plan focused on three pillars: strengthening commercial relationships (including retailers), higher efficiency and lower costs, and cuts to improve the focus on the company's core business and financial situation. After a year, the Transformation Plan seems to be paying off.
In the past financial year, the fruit and vegetable giant realized more turnover and Greenyard posted a higher gross operating profit. Turnover amounted to 4,061 million euros (+ 3.8%). Gross operating profit grew by almost half to EUR 95.7 million (+ 48.4%). The Fresh division (fresh fruit and vegetables) showed the greatest growth. Fresh's profit grew by 73.9% to EUR 43.4 million. The gross operating profit of Long Fresh (frozen) also rose by 28.8% and amounted to 53.9 million euros.
Despite the positive figures, Greenyard remains in the red. The company lost 68 million euros. However, in the 2018/2019 financial year, Greenyard made a loss of 192 million euros. The fruit and vegetable journey also managed to reduce its debt ratio from 7.1 to 4.4. The recovery is partly due to the improvement in profitability and working capital, the restored focus on cash and the proceeds from divestments.
Hein Deprez, co-CEO said: “We live in turbulent times. Our society and our customer landscape have changed. Also, our company has changed. This change was needed and will gear us up for the future. The way we have responded to the challenge of securing the food supply chain during the COVID-19 quarantine period, clearly demonstrates Greenyard’s strength and relevance. Therefore, I am grateful for the resilience and hard work of all our colleagues in order to regain our position in the market and increasingly earn the confidence of our customers, growers and suppliers.”
Marc Zwaaneveld, co-CEO adds: “This fiscal year started just after the announcement of the Transformation Plan, followed by the strong implementation thereof. It was paramount to install an agile organisation with a continuous improvement culture. From the start, the Transformation Plan showed an untapped efficiency and profitability potential. Throughout the year, the recovery continued and exceeded expectations. Greenyard is on its way to regain financial health and will be ready for sustainable growth.”