‘Good Year of Transformation,´ Says Greenyard Foods CEO

Gent, Belgium-headquartered Greenyard Foods has reported that sales rose +1.8% (or +3.1% at stable exchange rates) to €623.1 million during the fiscal year that ended on March 31, 2014.

“It was a good year of transformation. We realized a sales increase in stable markets and a strong increase in REBITDA and margin,” said CEO Marleen Vaesen. “This was largely achieved by an improvement of the operational results, thanks to a clear focus on operational excellence and customer management.

“The efficiency improvements are important to help offset the cost inflation,” she continued. “ The success factor for this is the consistent follow-up of results and improvement processes, as well as efficiency-enhancing investments and the acquisition of production facilities. This is all done in the context of further international integration in the frozen division.”

The vegetable and fruit processing and marketing company, whose holdings include the Pinguin frozen division and Noliko canned products unit, operates 15 factories in six European countries. It acquired several production facilities over the past 12 months, which optimized investments accelerated efficiency improvements. Financial highlights follow:

  • REBITDA of continuing operations amounted to €51.4 million, +18.2% compared to the previous accounting year; +7.8% due to the improvement of the operational results; +13.6% as a result of the discontinuation of rents; and -3.2% as a result of a reduction of the economies of scale of corporate costs following the sale of the potato division.
  • REBITDA margin increases from 7.1% to 8.3%.
  • Due to the strengthening of equity by €29.8 million, the balance sheet of the group is reinforced and as a result, financial ratios improved.
  • Medium term financing is assured thanks to the successful issuance of a bond loan (€150 million) and the agreement on working capital financing with a bank syndicate (€158 million).
  • Net result of €61.8 million.
  • Capital decrease of €39.5 million (€2.4 per share) on 30 September 2013.