Dutch producer supplier The Greenery has announced considerable profits despite "difficult conditions" and a fall in turnover.

The Greenery announced in its 2008 trading results that sterling fluctuation was one of the main reasons for a 5.9 per cent fall in turnover but it reported a profit of €8.7 million (£7.9m).

Its capital base remained virtually the same, at 39 per cent (as opposed to 41 per cent in 2007). Equity grew to €55 million in 2008 through addition to the result and the purchase of depositary receipts for B shares in the capital of The Greenery BV.

Operating costs for 2008 were more than €15 million lower than the previous year. The reorganisation effort initiated in 2007, aimed at improving efficiency, yielded a structural €12m reduction in annual costs over the course of 2008.

The Greenery said in a statement: “Lower supply volumes from our members and a drop in average prices, partly caused by fluctuations of the British pound, resulted in a stagnating turnover in euros.

“The effects of the financial crisis also took their toll… debtor credit limits were revoked and the payment behaviour of customers took a turn for the worse. These factors, in combination with investments in - among others - a new distribution centre, resulted in increased use of the banking credit facility over the course of the year.

“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."

Its overall net turnover for 2008 decreased by 7.5 per cent to €1.8 billion.

This development was offset by higher personnel costs due to a rise in service-related activities in the area of retailer logistics.

“Despite the current economic conditions, The Greenery is convinced that fruit and vegetable consumption levels will remain healthy. The Greenery will continue to realise its result improvement programme over the course of 2009.

“The focus will remain on the implementation of an operational excellence policy, the realisation of a sustainable, efficient chain and the creation of added value through close co-operation with European retailers,” the statement concluded.

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