Greenyard, the Sint-Katelijne-Waver, Belgium-headquartered vegetable and fruit company, announced on August 28 that like-for-like (LfL) net sales amounted to €1,281.3 million during the first quarter of the current financial year, growing 10.3% from € 1 161.2 million last year in the same period.
Compared to the same quarter in 2022, volumes remained stable at +0.2%. During Q1, to “maintain fair value for the entire chain from consumer to grower,” Greenyard reported that necessary price increases averaging 10.1% were charged through in full transparency.”
Within the global context of fruit and vegetables, inflation is one of the parameters in the total price setting.
“As these are pure products of nature, also yields, harvesting conditions and the availability of produce inevitability contribute to correct pricing. Therefore, price levels are adapted accordingly, always reflecting the actual uptick for input costs and costs for raw materials over the past periods, according to a press release issued by Greenyard..
The role of healthy and nutritious food remains more relevant than ever. Compared to the period prior to the Covid-19 pandemic outbreak, the company’s tonnage volumes have increased by almost 4%. And although the pandemic prompted many consumers to look more consciously to their lifestyles and diets, consumption of fruit and vegetables per capita in the EU today is still well below the recommended intake of 400 grams per day.
“Together with its customers, Greenyard continues to embrace its role to act as a driving force towards healthier lifestyles and to increase the consumption of pure-plant foods,” noted the press release.
Fresh Segment
In the fresh produce segment, LfL net sales in the first quarter went up from € 966.1 million last year in the same period to € 1,053.6 million this year, an increase of 9.1%. Fresh volumes grew by 0.6% versus the same quarter in 2022, while price increases amounted to 8.5%.
Long Fresh Segment
In the Long Fresh segment, which includes frozen vegetables and fruits, LfL net sales grew to € 227.6 million in Q1 compared to € 195.9 million during the same period last year, up +16.2%. Volumes were 2.1% lower in the first quarter of the financial year versus the same time in 2022 due to a temporary delay in orders of prepared food products, which are expected to be recouped over the next quarters. Increases in prices for raw materials and other input costs have been charged through to a large extent (+18.3%).
For full year 2023/24, Greenyard confirms its ambition to reach € 175 million to 180 million of Adjusted EBITDA and € 4,900 million of net sales. It also confirms its ambitions of reaching € 5.4 billion of sales and between € 200 million and 210 million of Adjusted EBITDA by March 2026.
