Improvement in sales of certain categories helps make up for ’normalisation’ of banana prices and decline in citrus demand
Growth in sales of kiwifruit, pineapples, grapes and exotics have contributed to an “excellent” result for Italian-owned importer-distributor Orsero Group in the first three quarters of the year.
Net revenues for the nine months were €1.16bn, just shy of the result recorded in the equivalent period of 2023 and buoyed by a slight increase in its produce distribution business.
However, the group’s various margin metrics hinted at a tougher trading environment: adjusted Ebitda was €66.9mn, compared with €89.4mn in 9M 2023; adjusted Ebit was €41.3mn (vs €64.2mn), adjusted net profit stood at €27.6mn (€49.9mn), and net profit was €26.3mn (€47.8mn).
In a statement, the group’s chief executives Raffaella Orsero and Matteo Colombini said revenues were “substantially in line with expectations” thanks to a positive performance for its distribution unit.
“The growth in products such as kiwifruit, pineapple, grapes and the exotic product lines led to an excellent result, more than offsetting the stagnation in consumption of certain campaigns, in particular citrus fruits, which saw declining volumes and a decline in interest from consumers,” they commented.
As well as the decline in citrus, unit prices for bananas had also normalised, they noted.
The group said profitability in its produce distribution business remained “above the sector average” and “well beyond” its own historical trend.
Its shipping business, meanwhile, has reportedly returned to pre-pandemic levels, with freight rates on reefer and dry volumes 14.8 per cent lower than they were in the first nine months of 2023.
They added: “Despite the uncertain macroeconomic context, we continue to be confident in Orsero’s medium-term growth potential thanks to its strong competitive positioning in essential goods, its solid financial structure that allows us to set up growth projects such as the one recently launched in southern Spain, and the tireless commitment of our people who demonstrate an exceptional commitment every day to achieving the objectives we set ourselves.”
