German fresh produce import and marketing company Landgard has reportedly preparing to announce it has made a loss for the first time in its history, with its financial stability apparently shaken over the past year by the E coli crisis which had such a profound impact on the trade in Europe last summer.
Speaking to the Rheinische Post newspaper, Landgard spokesman Torsten Brandt confirmed that the company's upcoming results – due to be announced at a shareholders' meeting a few weeks from now – could see its balance sheet slip into the red, following a severe downturn in the market for fresh produce in mid-2011 and a handful of bankruptcies among key customers.
Results from Landgard's entire business, including its sizeable flowers and plants division as well as its cash and carry operation, are still being collated, but it is understood the anticipated annual loss came from turnover which was more than €2bn, or nine per cent, higher than in 2010.
The rise in overall group sales is in part due to the recent integration of Leverkusen-based importer and ripener Walter Pott Fruchtimport into the group, a move which was announced in July 2011.
Three and a half years ago, Landgard acquired a majority share in Vetter Holding, parent company of leading import service provider Peter Vetter Group.
