Greenyard has reached sales of over EUR4bn in the previous fiscal year, according to the company’s annual report and financial statements.
The current COVID-19 pandemic inducing turbulence on the financial markets has accelerated Greenyard’s decision to re-evaluate its planned divestments, some of which had been initiated to focus on core operations and activities and improve the financial situation. At the end of the fiscal year, Greenyard has closed several of these divestments for a total consideration of EUR20,7m.
Overall, net sales amounted to EUR4.061,0m, indicating an increase of +3,8% YoY. Fresh sales amounted to EUR3.263,4m, up EUR74,7m from EUR3.188,7m last year (+2,3%), due in large to the revitalization of the commercial relationships and ramping up of the partnerships in the second half of the fiscal year. This also includes a recovery of the loss-making volumes that were terminated in the Fresh division. Meanwhile, long Fresh sales amounted to EUR797,6m, up EUR74,9m from EUR722,8m (+10,4%). The additional volumes were mainly sold to customers in the food service and industry in the first half of the fiscal year, while sales to retail customers boomed in the second half of the fiscal year, in part due to the new partnership with Tesco in the Frozen division.
Long Fresh has significantly improved adjusted EBITDA compared to last year, when the Frozen division suffered from the Listeria recall. Improvement is also thanks to a better capacity utilization and production efficiency as well as savings on logistics and overhead costs. This profitability increase was realized despite some adverse impact from price pressure in mushrooms and the external sourcing of corn after the sale of the Frozen factory in Baja, Hungary. According to the company, Greenyard is building long-term integrated relationships with Delhaize, Carrefour Belgium, REWE Group and Tesco in respectively the Fresh and Long Fresh segment. Currently, all these partnerships are running or are being ramped up as long-term relationships.