Greenyard Toasts 'Year Of Recovery', As Net Sales Rise 3.8%
Prepared fresh produce firm Greenyard has said that its 2019/20 financial period was a 'year of recovery' for the business, in which it forged new business relationships and improved operating procedures.
The Belgium-based group said that net sales for the year to 31 March 2020 were up 3.8% to €4.06 billion, with its Fresh and Long Fresh divisions both seeing gains.
The business said that it is building 'long-term integrated relationships' with retailers including Delhaize, Carrefour Belgium, REWE Group and Tesco, while it has also executed 'various projects' to improve its operational excellence.
These include the development of new transport flows and operating methods, group procurement initiatives, 'rigorous' cost discipline and the development of joint sourcing initiatives.
It said that its Transformation Plan, initiated last year, has been 'meticulously implemented', leading to a 'mentality of continuous improvement'.
“This fiscal year started just after the announcement of the Transformation Plan, followed by the strong implementation thereof," commented Marc Zwaaneveld, joint chief executive.
"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.”
Performance By Division
The group's Fresh division saw a 2.3% increase in sales, the group said, to €3.26 billion, which was largely driven by the 'revitalisation of commercial relationships' as well as a ramping up of its commercial partnerships.
In its Long Fresh division, sales were up by double digits (+10.4%), to €797.6 million, with increased sales to retail customers due to a new partnership with Tesco in the Frozen division.
The company posted a net loss of €68 million for the year, which was an improvement on the loss of €192 million it reported last year.
Since year end, COVID-19 has impacted the business, with Greenyard saying that it has 'fully taken up its responsibility to secure the supply of fruit and vegetables to consumers together with its growers and customers'.
"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," commented Hein Deprez, joint chief executive.
"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.”
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.