Brussels (Brussels Morning) – Greenyard’s sales surpassed €5 billion for the first time in 2023, driven by price increases to combat inflation and higher sales volumes. Net profits jumped 63% to €15.2 million.
Belgian fruit and vegetable supplier Greenyard witnessed sales cross the €5 billion threshold for the first time in its 40-year history in 2023, partly due to price gains introduced to fight input cost inflation.
The company noticed a “significant increase” of 10.9% in sales in the year to 31 March 2024, arriving at €5.1 billion. Growth was driven by a 7.3% proliferation in prices to cover higher input costs, as well as a 2.7% up in overall sales volumes.
Listed on Euronext Brussels, the global fruit and vegetable producer operates around 8,600 people across 23 countries. It was founded in 2015 through the merger of Univeg, Pinguin, Noliko and Peltracom. Belgium’s Deprez family, who originally established Univeg in 1987, still holds the controlling 37.7% share of Greenyard. Greenyard’s modified EBITDA (earnings before interest, taxes, depreciation and amortisation – a measure of profitability) advanced by 11.5% in 2023, to €186.5 million.
Why Did Greenyard’s Net Profits Increase by 63%?
The company’s net profits for the year bounced by 63% to €15.2 million, from €9.3 million in 2022. Greenyard expressed this was due to an improved operating result, and non-recurring costs being reimbursed by profits from the sale of assets in Brazil and the UK. However, Greenyard did note that the growth was partly offset by higher interest costs.
Greenyard CEO Francis Kint stated that 2023 confirmed a “challenging environment, characterised by a second year of inflation,” but that the company noticed improved results in terms of sales volumes and prices.
He stated that both the Long Fresh (frozen products and those that can be stored at room temperature) and Fresh segments of the business profited from “the trend of consumers seeking to improve the intake of fruit and vegetables in all its forms, to consume healthier and consume food that is produced in sustainable food chains.”
What Are Greenyard’s Financial Goals for 2026?
Kint declared that Greenyard is “confident” it will reach an annual modified EBITDA of between €200 million and €210 million by 2026. By the same year, the company calculates it will reach net sales of €5.4 billion.
How Is Greenyard Responding to Inflation and Interest Rate Challenges?
Greenyard CFO Nicolas De Clerq reported that inflation had impacted the company’s inventory levels and that interest rates had had an impact on financial costs. However, he said that as sales volumes increased, inflation could be “charged through in most cases” to customers, and this starts”a promising platform for further growth of the result and cash flow of the Group.”
At the company’s annual general conference in September, Greenyard’s board of directors will propose to improve the shareholder dividend for the year to March 2024 by 150%, from €0.10 to €0.25 per share.
