One of Europe’s largest fresh produce importers says it sees good potential for growth despite current economic uncertainty
Italian fresh produce importer Gruppo Orsero has revealed it made a profit of €15.1m in the first half of the year on the back of slightly lower sales of €744.1m, down from the €32.4m it made on €763.4m revenue in the same period of 2023.
In its half-year financial statement, the company reported a number of “non-recurring expenses” totalling €1.16m. These included “estimated statutory profit-sharing” among employees at its French and Mexican divisons, the cost of “extraordinary chartering” of an additional vessel to remedy schedule delays, and the closure of its AZ France warehouse in Solgne, north-eastern France.
However, the group said its H1 performance was “broadly in line with expectations”. Normalisation of its shipping business, and lower profitability in its key product category bananas, meant the results were “more in line with historical trends” than what it regarded as an exceptional year in 2023.
“The shipping segment records good levels of volumes transported and a significant reduction in sea freight rates, which nevertheless remain profitable,” it commented. “The greatest impact is on the dry container traffic on the backhaul-route from the Mediterranean to Central American countries.”
Uncertainty continues
Its produce business, meanwhile, was apparently affected by what it referred to as a “very uncertain” macroeconomic environment, with declining consumption in certain markets.
“Revenues are down slightly mainly due to management’s decision to reduce the weight of the marketing of third-party brand bananas in Italy,” it added, noting that the segment’s profitability was positive and in line with the market average.
It noted there had been some stagnation in consumption of certain lines during what was a mild winter, especially in Italy. And avocado volumes out of Mexico into the US were lower.
Energy costs in its exotics business – vital for ripening and storage of the fruit – were lower but still significant.
Despite continued global economic uncertainty as a result of conflicts in Ukraine and the Middle East, the group said it remained confident there was potential for growth in the medium to long term, thanks to its “strong competitive positioning” on essential goods, its “solid financial structure”, and its management’s “constant commitment to controlling costs and improving efficiency”.
