Greenyard Foods, the parent company of Belgian produce giant Univeg, has delivered a stable sales performance in a busy year that included the loss of a €300 million supply contract and the integration of both Univeg and Peatinvest.
Figures for the 52 weeks to 31 March 2016 showed group revenue falling 1.1 per cent to €4 billion, with net profits reported as €17m and net debt reduced by 9.1 per cent to €382.9m.
Univeg’s sales in the period declined by 1.9 per cent to €3.2bn, but the company nevertheless largely overcame the loss of a major German supply contract worth over €300m thanks to solid growth among existing customers in core markets and restoring profitability to underperforming activities. New investments were also made throughout the period that the company believes will bring further growth and profitability to Univeg going forward.
At Peatinvest, there was strong growth of 9.2 per cent to €66.3m, with NPD contributing 4 per cent and new anti-cyclical winter products 5 per cent to the top line.
In the prepared division, sales rose 1.7 per cent to £646m, with organic sales growth and favourable foreign exchange contributing to the increase. Despite tough market conditions and cost overruns due to temporary operational transition issues following ERP implementation in France, volume growth and efficiency efforts with a focus on lean and improved product mixes helped mitigate price pressure.
Chief executive Marleen Vaesen described the performance as “solid”. “We have identified the key priorities for 2016-17 with a focus on implementing Greenyard Foods’ vision, mission, values, drive topline growth and realise cost synergies and, importantly, improve internal talent development,” she said. “We are confident we have the right strategy and priorities in place for the long-term development of the company to create a strong global leader of fruit and vegetables in all its forms.”
Elsewhere in a busy year for the company, Greenyard concluded a joint venture with Veiling Haspengouw in August 2015, providing the group with access to local fruit. In January 2016, it also acquired canned mushroom specialist Lutèce.
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