Greenyard to sell its UK fresh produce operations

Greenyard have announced the discontinuation of its UK fresh produce operations in the United Kingdom, despite net profits rising by €15.7 million . The move comes a year after divesting its stake in fruit supplier Bardsley England.

In the last financial year, Greenyard significantly decreased its debt too.

"This was thanks to robust operating cash flow generation, partly due to lower interest payments and divestment proceeds. Divesting Greenyard Prepared Netherlands and Bardsley Fruit Enterprises' core assets in July 2021 also contributed to this decline in our net financial debt," they explained.

UK fresh operations for sale

Intending to sell its fresh produce operations in the United Kingdom is another example of these disinvestments. The company sees insufficient opportunities in the Post-Brexit fresh market, based on the integrated customer models the company strives for with its clients.

Their UK fresh produce business records some €70 million in sales. That is less than one percent of the entire market. "We've generally found that stand-alone profitable growth there takes time," co-CEO Marc Zwaaneveld told the assembled press in an online explanation.

"Perhaps it would be possible in the future, but we've decided to divest our fresh produce business in the UK in the coming months. Brexit is putting pressure on our market, and disrupts supply chains. There's, thus, not enough room for us. We'll begin focusing our efforts on continental Europe, where we can work with these integrated customer relationships."

However, in the frozen food sector, where the company has a leading position, it will continue to be fully committed to the United Kingdom.

Confidence in the future

The world currently finds itself in a highly challenging context, both macro-economically and socially, due to hyper inflation. This is not set to change any time soon either. Yet, Greenyard is reiterating its goal for its sales to reach the €5 trillion mark by 2025, and €200-210 million in adjusted EBITDA by March 2025. These ambitions do not take into account effects of possible future mergers and acquisitions.

Marc is still cautious about the next financial year. "It's impossible to predict what will happen with the geopolitical situation in Eastern Europe and hyperinflation. Who knows if it will improve or not. All I can say is that we've positioned ourselves well to be flexible and creative in a volatile market."

Also, Greenyard believes that, by further expanding it current range, it can win a fair share of its market. That market is growing by double-digits, and is expected to reach a total value of €150 trillion by 2030. The organization expects to grow mostly organically, but there could be targeted mergers and acquisitions so as to further fuel its strategy.

The company says this last fiscal year clearly revealed two of Greenyard's historic strengths. Firstly, it could continue building on the solid foundations of its, long-term and integrated relationships. And, with its strategy for 2030, the company is now also focusing even more on its vision of the future of food.

This strategy shows a clear ambition: 'Improving Life': Contributing to a healthier future, by connecting plant-based nutrition and healthy lifestyles with sustainable food value chains.

You can read the entire Greenyard Group annual report here.

Source: Fresh Plaza