Sint-Katelijne-Waver, Belgium-headquartered Greenyard on June 6 reported that sales rose 7.1% to over EUR 4.249 billion year-on-year (Y-o-Y) for the fiscal year ending on March 31, 2017. The positive result was fueled by internal growth of 5.3% and a 2.7% M&A gain, with the impact of foreign exchange rates slightly negative at -1%.
The net result performance of +0.7%, however, was down markedly from +17% logged in FY 2015/16. Excluding one-off costs, the net adjusted result came in at EUR 21.9 million. Earnings per share during the same period slipped from EUR 0.32 to EUR 0.02, with an adjusted EPS of EUR 0.51.
The Long Fresh division, up 15.8% to EUR 748.3 million, was the biggest percentage gainer in the group. It includes Pinguin and Noliko brands and private label prepared vegetable and fruit products distributed in frozen form as well as in cans and jars, including Lutèce mushrooms. The impact of currencies was negative at -3, primarily due to the weakening of British sterling.
Fresh division sales, which account for the lion’s share of revenues, advanced by 5.4% to EUR 3.425.8 billion – largely due to growth in the German and Dutch markets. Horticulture revenues rose 3.7% to EUR 75.1 million.
REBITDA (the operating result before interest, taxes, depreciation and amortization) increased by 7% to EUR 145.7 million. The gain of EUR 9.5 million was primarily attributed to the following:
- Fresh improved by EUR 3.8 million thanks to top line growth in core markets and improved logistic operations partly offset by the lack of volumes in Q4, impacting operating leverage, and the UK operations.
- Long Fresh posted a strong improvement of EUR 4.9 million driven by better portfolio management, mainly in frozen, and overall volume growth as well as efficiencies. This was slightly compensated by adverse weather conditions and ongoing price pressure in prepared sector.
- Horticulture’s profitability was enhanced on account of an improved product mix and continued cost focus, which combined to lift margins to 13.2%.
“Greenyard had a healthy performance with strong sales and REBITDA growth, which was realized in its core markets and with the acquisition of Lutèce,” commented CEO Marleen Vaesen. “Moreover, the balance sheet improved with a significant drop in net financial debt, improvements in working capital and interest costs savings. Combined with the increased REBITDA, leverage decreased as well. This was achieved including the one off costs of the refinancing. The latter was realized with the launch of a convertible bond combined with bank debt, and will annually save at least EUR 15 million in interest costs.”
Noting that the company has launched a number of projects to propel future top line growth and reduce costs going forward, the chief executive added: “In Frozen, a new factory became operational in Poland. In Fresh, new distribution centers have been built in Germany, Belgium and the United States. In Prepared, we invest in the integration of Lutèce. We also put in place the right organization to realize cost synergies.”
Meanwhile, since the start of Greenyard’s stock buyback program on almost three months ago, 1,337,752 shares valued at EUR 21,949,139 have been acquired by the company. This corresponds to 3.01% of the total shares outstanding.
