Fresh produce giant Greenyard has announced a transformation plan, with a view to growing its EBITDA by €20 million in 2019/2020 and by €44 million in 2020/2021.
As part of the transformation plan, Greenyard will seek to implement a number of measures, the first of which will be to work alongside its partners on the development of a vertically-integrated partnership model.
'A further implementation of this model will make Greenyard stronger, leaner and better able to protect its margin and market position,' the company said. 'In the longer term, the partnership model will reduce waste, improve product quality and improve margins in the value chain, creating benefits for all.'
The company also plans to streamline its workforce, with up to 422 jobs potentially impacted by the rollout of the plan, primarily in the UK and Germany.
Footprint Optimisation
Greenyard will also undertake a 'rational footprint optimisation' process, through which it will offload assets that are 'no longer essential to maintaining the service levels towards its customers, or no longer provide the required return on investment for the group'.
It plans to make a series of improvements to its supply chain, using its 'pan-European presence, scale and best practices' to deliver greater economies of scale.
It will also explore the option of a strategic divestment of its Prepared division, however it will not consider divesting its Fresh and Frozen divisions.
Strength And Scale
"After years of growing Greenyard, it is time to consolidate and to use our strength and scale to become an even closer partner to our customers," said Hein Deprez, the group's co-chief executive.
"We want to remain the retail’s strong and efficient partner, even stronger than today. A partner that is ready for the long term, together with its customer. Today, we are already making strong progress on these initiatives. This also implies a transformation of the organisation. We believe that these measures are needed for a healthier future for Greenyard, its employees, its customers, its suppliers and its shareholders.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
