Dutch cooperative group Zon has returned to profitability as a major reorganisation strategy initiated during the second half of 2012 begins to bear fruit. The company posted a profit of €1.3m for 2013 compared with a loss of €2.4m in the previous year. Sales also increased to €362m compared with €353m in 2012.
The company said lower output caused by the cold spring had led to firm prices overall, with the exception of tomatoes, which had registered lower than average prices, particularly during the summer.
In 2012 Zon implemented a far-reaching restructuring programme in a bid to rationalise its business structure and reduce its cost base. The reorganisation will continue in 2014 and subsequent years as the company continues to become more market-oriented rather than supply driven.
“Our members should expect from Zon that the company keeps a close eye on costs and operates decisively,” managing director Gerjo Scheringa said. “A healthy financial organisation is necessary for being able to face the challenges, such as increased pressure of competition and the reduction in subsidy flows. There’s no time for resting contentdly on our laurels, despite the good annual figures – we have to keep working together to achieve a healthy future.”
In light of the improved results, Zon has decided to reduce its commission rates by 0.2 per cent retrospectively from 1 January 2014. This reduction comes on top of the previously announced cut in commission that also came into effect on 1 January. This means that the company has managed to reduce its commission for members to an average of 12 per cent.
