Greenyard Foods has reported a drop in profits for the first half-year

Greenyard Foods has reported a drop in profits for the first half-year

Greenyard Foods has reported higher half-year sales but a decline in profitability in the first set of six-month results since the formation of the Belgium-based group earlier this year.

The company was established this summer after canned and frozen food supplier Greenyard merged with fresh produce giant Univeg and agribusiness Peatinvest.

The enlarged Greenyard yesterday (15 November) published numbers for the six months to the end of September, which took in six months of the old Greenyard and three-and-a-half months of both Univeg and Peatinvest.

Like-for-like figures on a pro-forma were provided for comparison purposes as if the operations of Univeg and Peatinvest were included for six months in both periods.

Sales rose 1.5% to EUR1.98bn, driven largey by 1.4% increase in sales from Greenyard's fresh division to EUR1.64bn. Greenyard's prepared foods business saw sales increase by 0.8% to EUR299.9m.

The company reported recurring EBITDA of EUR71.6m, down 17% on the year. 

Earnings from both Greenyard's fresh and prepared foods divisions fell. The fresh arm saw recurring EBITDA drop 7.4% to EUR40.8m, amid a change in the unit's mix of customers and products, as well as higher costs to boost quality.

The company's prepared foods unit reported a 31.7% slide in recurring EBITDA to EUR26.7m.

Greenyard said the prepared unit had posted "an exceptionally good operational result" in the first half of last year.

However, the company said "above-average stock levels" in Europe and competitive market conditions leading to lower processing volumes and price pressure.

The group posted a net profit of EUR2.2m, compared to EUR23.1m a year earlier.