Fresh-produce firm Greenyard has announced that the company's profitability is improving as planned and it expects growth to accelerate in the second half of the year.
In a trading update, the company attributed its performance to the implementation of its transformation plan, which places a strong focus on margin and profitable volumes and rightsizing the overhead cost base.
First-Quarter Performance
Greenyard reported net sales of €1.03 billion in the first quarter, down 2.6% year-on-year from €1.06 billion in 2018.
Sales of fresh fruit and vegetables dropped 4.0% to €849.4 million from €884.7 million, due to the termination of contracts of certain loss-making products and price pressure on grapes, melons, and citrus fruits.
Sales of frozen fresh produce increased by 4.1% year-on-year, to €181.9 million from €174.7 million last year.
First-Half Outlook
Greenyard has projected an EBITDA in the range of €43.0 million to €45.0 million for the first half of its financial year.
The figure marks a 'sharp recovery' when compared with an EBITDA of €23.3 million in the same period last year, the company said.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
