Dutch wholesaler Sligro Food Group has reported a 1% year-on-year growth in sales to €533 million in the first quarter of its financial year, from €528 million in the same period last year.
The company’s sales were impacted, however, as a result of the measures implemented by the government in response to the COVID-19 crisis, with the Netherlands and Belgium affected equally in relative terms, Sligro said in a trading update.
The consolidation of De Kweker in the Netherlands contributed €25 million to the company’s net sales in the first quarter, €3 million lower as a result of the effects of the COVID-19 pandemic.
In mid-March, a majority of customers of the company closed down their operations as the Dutch and Belgian governments implemented a range of measures to contain the spread of the COVID-19 virus.
In the Netherlands, sales amounted to €481 million in this period, while Belgium saw sales of €52 million.
Outlook
In the second quarter, Sligro expects to operate under similar market conditions as in the end of March.
While there is uncertainty surrounding COVID-19 and the length and scale of government measures to control the epidemic, the company is hopeful that the markets will recover slowly and gradually in the third and fourth quarters of 2020.
The company foresees a return to its pre-coronavirus levels by the middle of 2021.
© 2020 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.
