Greenyard Sees ’Solid' Sales Growth In FY 2020/21
Fresh produce firm Greenyard has reported 'solid' year-on-year sales growth of 8.7% to €4.4 billion in its financial year 2020/21, driven by increased sales in its integrated customer model.
The company's Fresh segment saw double-digit sales growth of 10.1% to €3.6 billion, with sales with integrated customers increasing by 22.3%.
It also noted that in most geographies, parallel to increasing awareness for healthy lifestyles among consumers, retailer volume was stimulated by COVID-19 measures implemented by local authorities.
Sales in the Long Fresh unit increased to €823.5 million, up 3.2% from €797.6 million last year.
This was mainly driven by a volume increase in retail, new sales contracts and a better product mix, partially offset by a temporary loss of volumes in foodservice induced by the quarantine measures related to COVID-19.
Hein Deprez, co-CEO of Greenyard, said, "Health is on everyone's agenda, even more so today. For Greenyard, this is logical: fruit and vegetables play a vital role in moving towards healthier lifestyles. Therefore, we consider it our responsibility to ensure that these products remain available for our consumers, regardless of the challenges and complexities the pandemic created.
"We now look beyond that point. The intimate and integrated relationship we build with our customers, ensuring a short supply chain, and the products we develop together with them, contribute to our goal to improve life, as they cater for more diversity, choice, convenience and quality in the fruit and vegetable assortment."
Adjusted EBITDA (post-IFRS 16) for the fiscal year increased 17.6% year-on-year to €156.9 million.
The company expects adjusted EBITDA (post-IFRS 16) for AY 21/22 to grow towards €165.0 million versus its initial guidance of €160.0 million.
In the Fresh segment, adjusted EBITDA (post-IFRS 16) increased 24.6% year-on-year to €95.1 million, mainly due to strong volume growth realised under the integrated customer relationships.
The full-year impact of the transformation measures initiated in the previous year as well as newly defined initiatives in the reporting year, including strong cost control, workforce resizing, efficiency improvements, and waste control also contributed to its performance.
The Long Fresh unit reported an adjusted EBITDA (post-IFRS 16) growth of 7.1%, to €62.6 million, driven by efficiency improvements, a positive impact of new sales and purchase contracts, and increased sales share in higher-end products.
Co-CEO Marc Zwaaneveld added, "We had a strong year, on all aspects. The group's organisation has been tailored, and the mindset and culture changed to meet the changing needs of our customers and end consumers. The capital structure has been strengthened, and the volatility of the profitability significantly reduced."