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Greenyard reports 6.1% sales growth and strengthens financial position

Greenyard reported an increase in like-for-like net sales of 6.1% (€152.7m), bringing total net sales to €2,641.0m. This growth was driven by a 2.4% increase from inflation-compensating measures, a 2.9% rise in volumes in the Fresh segment, and a 0.8% increase in service sales and transport recharges. Adjusted EBITDA rose by 4.6% to €94.4m. However, the net result of €1.2m fell below last year's level, impacted by restructuring costs, higher depreciations, and the absence of gains from the sale of property, plant, and equipment recorded in the previous year.

A significant reduction in both debt and leverage ratio was achieved, with the leverage ratio decreasing from 2.39x to 1.92x year-on-year. This improvement was driven by better operational cash flow and net working capital management, despite challenges such as higher inventory levels, the acquisition of Crème de la Crème, a share buyback program, and dividend payments. Greenyard reported progress in its ESG and CSRD reporting, with renewable energy use increasing to 64%, ensuring the company meets its CO2 reduction targets. The group remains on track to achieve 100% recyclability in its packaging. Greenyard reaffirmed its ambition to reach €5,400m in sales and adjusted EBITDA of €200m–210m by March 2026.

In the Fresh segment, like-for-like net sales grew by 6.5% to €2,164.3m, mainly due to higher volumes and increased revenue from Integrated Customer Relationships (ICR). This raised ICR sales from 78% to 79% of Fresh segment revenue. However, adjusted EBITDA in the Fresh segment saw a slight decrease of €0.3m, or 0.6%, due to higher sorting and packing labor costs. In the Long Fresh segment, like-for-like sales increased by €20.4m to €476.7m, reflecting a 4.5% rise. This growth was attributed to the annualization of inflation mitigation measures, particularly in Frozen products. However, a 4.3% decline in volumes, due to lower sales in the Food Service channel for Frozen and reduced vegetable volumes in Prepared, partially offset these gains. The EBITDA margin for Long Fresh improved from 8.2% last year to 8.6%.

CEO Francis Kint remarked on the company's performance, highlighting that after navigating two challenging years marked by unprecedented inflation, Greenyard delivered strong operational results in the first half of FY 24/25. Net sales increased, and adjusted EBITDA improved, driven by sustained volume growth in the Fresh segment and optimal pricing across both Fresh and Long Fresh. Looking ahead, the company is preparing for the next financial year by addressing underperforming businesses and reducing overhead in specific divisions. Kint also noted that further operational improvements remain a focus. "The future of food aligns perfectly with our core business, and with the agility of our people and operations, we are well-positioned to support our customers and growers in expanding the consumption of pure-plant foods," he said.

To view the full report, click here.

For more information:
Cedric Pauwels
Greenyard
Tel: +32 15 32 42 00
Email: [email protected]
www.greenyard.group

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