Fresh produce firm Greenyard has reported a double-digit growth in group sales in the third quarter and the first nine months of its financial year 2020/2021, driven by volume growth in the long-term customer relationships.
The company saw a 10.3% growth in sales, to €1.1 billion, in the third quarter, with its Fresh division generating sales worth €859.5 million, up 11.4% year-on-year.
The Long Fresh saw sales worth €225.4 million during this period - a growth of 6.4% compared to the same period last year.
For the first nine months of the fiscal year 2020/2021, the company generated sales worth €3.3 billion, up 10.3% from the previous year.
Sales in the Fresh division amounted to €2.7 billion (+11,2%), while the Long Fresh segment generated €605.8 million (+6.6%).
'Unique Strategic Model'
Commenting on the company's performance, co-CEO Hein Deprez said, "We continue to demonstrate that our unique strategic model of integrating with customers to create long-term, sustainable and stable relationships inherently secures stable growth in sales and profitability.
"Over the past two years, we have been able to accelerate the rollout of this strategy thanks to the further professionalisation of the group. This professionalisation has equally facilitated economies of scale, best practices, and efficiency gains across both segments."
For the full financial year ending 31 March 2021, Greenyard has projected adjusted EBITDA to land at the upper end of its earlier guidance of €106 million to 110 million.
Greenyard also unveiled its ambition to further increase group sales, with an expected long-term CAGR of 2.5% over the coming four-year period.
The company expects adjusted EBITDA for the next financial year ending March 2022 to increase to €120 million.
By the end of the financial year 2024/2025, its ambition is to increase the adjusted EBITDA to around €150 million, with a resulting adjusted EBITDA margin target of approximately 3.0%.
Marc Zwaaneveld, co-CEO, said, "Over the past two years, our focus has been to develop Greenyard for the next phase of its existence. The key words are resilience, agility and continued professional governance.
"With a management team committed for the long-term, this will lead to solid and sustainable growth involving all stakeholders in the supply chain."
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.