Belgian fruit and vegetable supplier Greenyard saw sales cross the €5 billion threshold for the first time in its 40 year history in 2023, partly due to price increases introduced to combat input cost inflation.
The company saw a "significant increase" of 10.9% in sales in the year to 31 March 2024, reaching €5.1 billion. Growth was driven by a 7.3% increase in prices to cover higher input costs, as well as a 2.7% lift in overall sales volumes.
Listed on Euronext Brussels, the global fruit and vegetable producer employs around 8,600 people across 23 countries. It was established in 2015 through the merger of Univeg, Pinguin, Noliko and Peltracom. The Belgian Deprez family, who originally founded Univeg in 1987, still holds the controlling 37.7% share of Greenyard.
Greenyard's adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation – a measure of profitability) increased by 11.5% in 2023, to €186.5 million.
The company's net profits for the year jumped by 63% to €15.2 million, from €9.3 million in 2022. Greenyard said this was due to an improved operating result, and non-recurring costs being compensated by profits from the sale of assets in Brazil and the UK. However, Greenyard did note that the increase was partly offset by higher interest costs.
Challenge of inflation
Greenyard CEO Francis Kint stated that 2023 proved a "challenging environment, characterised by a second year of inflation," but that the company saw improved results in terms of sales volumes and prices.
He said that both the Long Fresh (frozen products and those that can be stored at room temperature) and Fresh segments of the business benefitted from "the trend of consumers seeking to increase the intake of fruit and vegetables in all its forms, to eat healthier and consume food that is produced in sustainable food chains."
Kint affirmed that Greenyard is "confident" it will reach an annual adjusted EBITDA of between €200 million and €210 million by 2026. By the same year, the company estimates it will reach net sales of €5.4 billion.
Greenyard CFO Nicolas De Clerq noted that inflation had impacted the company's inventory levels, and that interest rates had had an effect on financial costs. However, he said that as sales volumes grew, and inflation could be "charged through in most cases" to customers, and this creates "a promising platform for further growth of the result and cash flow of the Group."
At the company's annual general meeting in September, Greenyard's board of directors will propose to increase the shareholder dividend for the year to March 2024 by 150%, from €0.10 to €0.25 per share.
