The Greenery has recorded a net profit of €8.7m for 2008 in spite of difficult trading conditions, which have led to members’ turnover dropping by 5.9 per cent during the period compared with the previous year.
In a statement, the Barendrecht-based group said that various factors had a “major impact” on its results, including lower supply volumes from its grower members and a drop in average prices. This latter factor was partly caused by fluctuations in the level of the UK pound, resulting in a stagnating turnover in euros, it said.
As a result of the market difficulties, the Greenery’s overall net turnover for 2008 decreased by 7.5 per cent, to € 1.8bn.
The effects of the financial crisis also took their toll on The Greenery, the statement said, with debtor credit limits revoked and the payment behaviour of customers taking “a turn for the worse”.
“These factors, in combination with investments in, amongst others, a new distribution centre resulted in increased use of the banking credit facility over the course of the year,” said the group.
“The emphasis on paying relatively high prices to our members in combination with greater competition from other production areas and an increased focus on price among retailers put pressure on profit margins.”
In spite of these pressures, The Greenery said that operating costs for 2008 were over €15m lower than the previous year, thanks to a reorganisation programme – initiated in 2007 – aimed at improving efficiencies in the company.
Looking ahead to the rest of 2009, the group said that despite the current economic conditions it was convinced that fruit and vegetable consumption levels would remain healthy.
The Greenery added that it would continue to realise its result improvement programme over the course of 2009, which would focus on the implementation of an operational excellence policy, the realisation of a sustainable, efficient chain and the creation of added value through close cooperation with European retailers.