Fresh produce group Univeg has reportedly posted a loss of €20.4m for 2009, compared with the €32.4m profit it made during the previous financial year.
The news, published in Belgian newspaper the De Standaard, will be of particular interest to other companies in the European fresh produce business, which has watched Europe's largest fresh produce supplier make a number of high-profile acquisitions over the past few years.
Speaking to De Standaard, Univeg chief executive Rudi de Becker attributed the dramatic shift in fortunes to restructuring costs associated with those recent acquisitions – notably the merger with another fresh produce giant, Bocchi, and the purchase of German importer Atlanta from US group Chiquita – as well as 'market imbalances'.
'The Russian market was largely gone, with the result that the groups who normally sold their produce there were competing for the European market,' Mr de Becker told the publication. 'As a result, prices dropped by 10 percent and more. 2010 will be better.'
However, Univeg president Hein Deprez revealed that the group had managed to reduce its debt from €289m to €238m during the course of 2009, a figure which, at three times the company's operating cash flow, he described as 'very acceptable for a group like ours'.
Mr de Becker insisted: 'The substructure of Univeg is solid, as is evident from the large customer base. To increase operational efficiency, investment will be made in strategic sourcing so that goods flow and transportation is done in the smartest manner.'
Further integration of Univeg's recently acquired companies will also need to be considered, he admitted. 'Domestic production will be streamlined and marketing and sales will become more efficient,' he said.
