Greenyard's financial results fall short of expectations
The head of Belgium-headquartered multinational Greenyard (Euronext Brussels: GREEN) says its preliminary annual results have fallen short of expectations but that his confidence in the future "remains intact".
REBITDA for the year ended March 31 is expected to fall by 4% to €140 million. The company's revenues, meanwhile, are set to come in at €4.2 billion, which it said would be "in line with consensus".
In a statement, Greenyard said it is currently suffering from a "provisional setback across all segments".
"Whereas growth in Fresh was temporarily decelerated and upfront investments were initiated which are today not yet fully up and running, Long Fresh continues to be impacted by Prepared driven by ongoing price pressure further aggravated by high input costs," it said.
"Additionally, Horticulture suffered from the winter conditions in Q4, which postponed the traditional spring activities."
Hein Deprez, CEO of Greenyard: "Greenyard’s preliminary annual results do not meet our expectations, also because of certain external factors.
"Nevertheless, our confidence in the future remains intact, based on the direction we took at the end of January: together with the Board, Greenyard’s management concluded that we need to be even closer to our customers."
He said this resulted in a further strengthening of the management teams at the business segment level.
"Since this significant change in the organizational structure, Greenyard has become more agile and decisions are taken much faster. Furthermore, we are scaling up our operational excellence programs and are planning to step-up investments for future growth.
"We remain highly convinced that Greenyard has the right strategy and priorities in place to continue generating profitable growth. Despite our 17/18 results, we remain confident to realize an increase of 10% in REBITDA for the current year 18/19, starting April 1, 2018.’
