Fresh produce firm Greenyard has reported a 7.3% increase in sales in the first half of its financial year, driven by 9% price increases in an inflationary environment, the group said.
Reported sales were up 5.1% to €2.3 billion in the period, up from €2.19 billion in the corresponding period last year, the Belgium-headquartered group said.
In its statement, Greenyard said that the market for fruit and vegetables has been 'severely impacted by unprecedented macro-economic and geopolitical turmoil', with high inflation along with high energy, transport and labour costs all weighing on the sector's profitability.
'Unprecedented Times'
"These are unprecedented times," commented co-CEO Marc Zwaaneveld. "We are living the global consequences of macro-economic and geopolitical turmoil, which is affecting economies, supply chains and businesses across the globe.
"Despite the pressure on businesses, Greenyard has shown the ability to leverage its strong, central position in the food value chain. In the current circumstances, we notice an increased appetite in our unique and integrated ways of working."
In its Fresh division, Greenyard reported a like-for-like sales increase of 5.9% (+5.5% on a reported basis), which was largely driven by price increases of 8.9%, with volumes down 3.0%.
In its Long Fresh segment, meanwhile, sales were up 14.5% on a like-for-like basis (+3.1% on a reported basis), with volumes rising 5.4% due to the resumption of foodservice following the COVID-19 pandemic.
At group level, Greenyard reported an EBIT of €27.3 million for the period, which was €4.7 million lower than the corresponding period last year.
Difficult To Make Forecast
Looking ahead, the group said that the current economic and geopolitical climate 'make it difficult to give a clear guidance', with the speed and level of growth dependant on the wider macro-economic and political situation.
"With a strengthened relative market position and unaffected profitability, Greenyard is set to reap the benefits both of increasing consumption and its unique approach to the market, as soon as the economic and geopolitical climate comes to a new normal," Zwaaneveld said.
© 2022 European Supermarket Magazine – your source for the latest fresh-produce news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
