The Greenery’s annual figures are positive for fiscal year 2016. The net profit doubled, from 4.1 million euro in 2015 to 9 million euro last year. That result was achieved despite lower returns. Reading through the sales organisation’s annual report, a few other remarkable things become clear.
Although a good result can be reported in total, specific parts had a difficult year. The entire subsidiary The Greenery Italia had a difficult year. The company is dependent on the sales of large volumes in short periods. The annual report says: “Because of this, not all margins necessary could be met in order to achieve a positive result. The Greenery Italia did manage to add a number of new customers in the retail segment again, including MD and Carrefour.”
The organic segment also booked a considerable sales increase, but the market is still growing quicker than production. Despite more growers showing an interest in switching in 2016, production remains lagging behind demand.
The focus on The Greenery’s core activity, which in previous years led to the sale of subsidiaries Mulder Onions and North Bank Growers, continues. The Greenery is looking for an acquisition candidate for Brazilian mango producer PTLA.
In the Netherlands, policy is focused on reducing the number of DCs. Of the nine DCs The Greenery had in 2013, only three should be left over in 2019. That means the floor area will be reduced from 105,000 m2 in 2013 to 60,000 m2 in 2019.
Sustainability is important and is becoming visible at practical points.For example, the lease fleet has been taken under hand, and lease cars now have to have at least energy label C. Additionally, the use of public transport is encouraged.
Online remains a search, but the channel is becoming increasingly important. “The Greenery is researching how this channel can be optimally serviced, and safeguards its ‘license to operate’ by means of: Partners for online sales. Trial projects with direct supply to final users. Making products ‘online proof’ based on search results. Making the primary logistical process more sustainable. Guaranteeing food safety. Offering convenience and ready-to-eat products.”
Somewhere else in the annual report, Gerard Pronk and Steven Martina write: “Sustainable relationships between retailers and suppliers can guarantee the constant quality of the product. At the same time, retailers are challenged by new (online) entries, alternative products, new and more eating moments through online and offline channels. We therefore also have to stay connected to the online markets of our customers.”
The Greenery doubled its net result for 2016. The net profit rose from 4.1 million euros in 2015 to 9 million euros in 2016. The turnover fell by 6.9% to 1.030 billion euros. The improved profit was achieved despite a lower gross contribution, as a result of cost reductions including lower finance charges. The Management Board anticipates continued sales growth, particularly among Retail customers.
In the 2016 reporting year, The Greenery continued to successfully implement the strategic plan for 2014 – 2018. The choices are leading to a stable consecutive rise in profits. The turnover fell to 1.030 billion euros as a result of a 12.5% drop in volume. However, on average the price level was 6.5% higher than in 2015.
This was partly due to the weather conditions in the Netherlands and other production countries during the year under review. This placed upwards pressure on prices in many product groups, slightly compensating for the drop in volume as a result. The decrease in turnover manifested itself entirely in the organisation's Fruit and Vegetable trade.
This decrease will be considerably lower as a result of the continuing operations, namely 3.8%. Virtually all the members continued their membership in 2017, with the exception of business closures and one disposal.
Based on member volume trends, the Management Board expects the total sales volume to decrease slightly in 2017. A continued upwards sales trend is expected, however, in particular among Retail customers.