Dutch fresh produce marketing group The Greenery has posted a net profit of €4.8m for 2010, down from the €7.4m it made in 2009, although turnover for the period increased by 13.3 per cent compared with 2009 to €1.8bn.
In its annual report for 2010, published today, the company said the recent successful introduction of its New Collaboration Model (NCM) had led to a slight increase in The Greenery BV's total sales volume, while an increase in equity capital and liability capital, as well as greater solvency, are all seen as signs of a healthy financial position.
The NCM, between the group's horticultural cooperative Coforta and The Greenery itself, has been in effect since 2010.
Members of the Coforta cooperation, who own The Greenery BV, are now able to choose whether to use The Greenery trading company or Coforta Verkoop to sell their products.
According to the group's annual report, growers have responded positively to the introduction of the new model.
The Greenery BV once again met its target of paying Coforta grower-members a final price in line with market rates, it said, with average product prices for growers reported higher than in 2009.
The group attributed the increase in turnover to a marginally higher volume (0.3 per cent) of mainly retail clients, as well as to higher average prices.
However, particularly in the summer months, higher-than-average purchase prices could not be passed on to sales prices, which put a strain on operating results, it said.
'The introduction of the new model led to a one-off increase in operational costs in the first year,' the report summary continued. 'These costs were partly compensated by lower overhead costs, various efficiency measures and one-off gains from a release of risk provisions.'
The Greenery's operating profit in 2010 totalled €3.6m, compared with €13.9m in 2009.
'In 2011, The Greenery will refocus its strategy for operational excellence and creating added value with a view to improving operational results,' said group chief executive Philip Smits.
Efforts to save costs and build a more efficient logistics chain will be intensified over the coming months, Mr Smits revealed. Such efforts will include rolling out a new logistics concept, which will result in the closing down of the company's Maasland distribution centre.
'The Greenery BV will also strengthen its market approach on the basis of product specialisation,' he added. 'It will continue to invest in sustainability (Nature Counts) and further explore and define options for producing local for local.
'These initiatives will ensure that The Greenery continues meet market demand and responds to the needs of both customers and consumers.'
