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Greenyard sees turnover and profit increase

Greenyard sees turnover and profit increase
Image: Shutterstock

Greenyard is running at full speed: sales have risen sharply due to the high demand during the coronavirus pandemic and profits are also improving, the Belgian vegetable processor reports in an intermediary update.

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Strong growth

Vegetable and fruit processor Greenyard remains fully operational during the corona crisis, the company announces in an preliminary Covid update. "The speed, transparency and efficiency of the partnership model in particular, allow Greenyard, its partners and growers to uphold a strong supply chain", Greenyard claims with a certain degree of pride.

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Demand has risen sharply since the corona crisis, and although costs have also risen (due to higher purchase, transport and processing costs), profits will be positively impacted as well. Earlier, Greenyard assumed an operating profit (EBITDA) between 88?and 93?million euros, but that should now be 1.5?to 2?million euros higher.

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Transformation continues

Nevertheless, the increase in profits would mainly be attributable to Greenyard's transformation, which is continuing strongly in the meantime. According to management, the revitalisation of volumes and margins, streamlining of the organisation and making it more efficient, a strict cost control and operational efficiency improvements in such areas as logistics, are being implemented.

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Total annual turnover is expected to end just over 4?billion euros. Before the corona crisis erupted, revenue growth was already 2.4?%. Net debt has been reduced by 25?million euro, despite the fact that a number of planned divestments have been postponed.

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