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November 23, 2016

Belgium’s Greenyard books first-half profits jump

Belgium-based Greenyard Foods has booked a "significant increase" in first-half profits.

Belgium-based Greenyard Foods has booked a “significant increase” in first-half profits.

Greenyard said net profit for the period up to 30 September was EUR6.8m (US$7.2m) compared to nil profit over the same period a year ago.

The company said the result “reflects the strong increase in operating profit due to the full consolidation of fresh and horticulture (six months vs three-and-a-half months previously), which is partly offset by higher non-recurrings and financial charges”. 

Operating profit for the first half of the year jumped 71% year-on-year to EUR40.4bn.

Sales were up 8.6% year-on-year in the period to EUR2.1bn. Greenyard said fresh sales grew by 6.9%, thanks to growth in Germany, the Netherlands and Poland. 

Sales from Greenyard’s long fresh division, which houses its canned and prepared businesses, were up 19.6% supported by a 4.1% rise in underlying sales growth and the incorporation of Netherlands-based canned mushroom supplier Lutèce, which the company bought at the start of the year.

Horticulture sales fell 2.5% due to a planned product discontinuation, Greenyard said.

The company said non-recurring items impacted EBITDA negatively by EUR5.9m “mainly due to restructuring charges”.

Greenyard’s recurring EBITDA, or REBITDA, increased by 7.2% to EUR77.7m. Greenyard said the year-on-year improvement was mainly driven by its fresh arm, “thankstop-lineline growth in core markets and improved margins in the logistic operations”.

CEO Marleen Vaesen said: “Greenyard started the year with good internal growth, combined with solid improvement in REBITDA. We continue to focus on our strategic priorities to drive profitable growth. As evidenced by the smooth integration of Lutèce with synergies continuing to come in. The expansion in Lipno, Poland, became operational this summer and supports our operational excellence programme in Frozen.”

Vaesen said a new US facility, planned to open next year, “is illustrative for our ambitions in the growth markets”. 

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