Greenyard - earnings boosted by a surge in sales

Greenyard - earnings boosted by a surge in sales

Belgium-based fruit and veg supplier Greenyard has raised its full-year profit guidance in a trading update today (17 September) after seeing a third consecutive quarter of sales growth.

The company said this morning that volumes have increased generally, and a margin improvement in its Fresh segment of more than 25% compared to the same period last year, were large contributors to its improved financial performance.

In August, Greenyard reported an 11.4% increase in first-quarter sales to EUR1.14bn (US$1.34bn) but did not provide figures for profits. It added today that sales have continued to increase since.

Greenyard now expects adjusted EBITDA for the first half to amount to approximately EUR55m, versus EUR47.6m last year. The company has also raised its previously given adjusted EBITDA outlook from EUR100m-EUR105m for the full fiscal year to EUR106m-EUR110m. 

In a statement the company said: "This sustained sales growth underlines the importance of Greenyard's long-term customer relationships and reaffirms the company's regained strength."

It said these commercial relationships have led to a shift toward more services with higher added value.

Greenyard added that it is continuing to work on a structural improvement of its margin, profitability and cash flow. 

The company said organic growth and debt reduction remain its main objectives and will form the basis for new long-term financing.

In April, Greenyard raised its sales guidance after demand for its produce increased, partly linked to the Covid-19 outbreak and the subsequent shift in volumes from the foodservice channel to food retail.

Greenyard has more than 8,500 employees operating in 25 countries worldwide. 

Its half-year results will be published on 17 November.