Temporary working capital

Greenyard Ends Fiscal Year With Sales Growth and Stronger Balance Sheet

Greenyard has released financial results for the full year, as well as its heightened ambition for a healthy lifestyle among consumers. Hein Deprez, Co-CEO of Greenyard, said: “Health is on everyone’s agenda, even more so today. For Greenyard, it makes sense: fruits and vegetables play a vital role in the evolution towards healthier lifestyles. Therefore, we consider it our responsibility to ensure that these products remain available to our consumers, regardless of the challenges and complexities created by the pandemic. Together with our partners, we have done this successfully, and we are now looking beyond that point. The intimate and integrated relationship that we build with our customers, guaranteeing a short supply chain, and the products that we develop with them, contribute to our goal of improving life, as they respond to more diversity, choice, convenience and quality in fruit and vegetable assortment.

Solid revenue growth, sustained profitability and deleveraging below 3.0x net financial debt / LTM adjusted EBITDA

Sales. Overall net sales amounted to 4,416.2 million euros, indicating an increase of 8.7% year-on-year.

  • Fresh sales amounted to 3,592.7 million euros, showing double-digit growth (+ 10.1%) compared to 3,263.4 million euros last year (329.3 million euros). euros), where sales with integrated customers increased by 22.3%, including the acceleration of some of the latter relationships. In most geographies, along with growing consumer awareness of healthy lifestyles, retailer volume has been boosted by COVID-19-induced measures from different local authorities.
  • Long Fresh sales increased to € 823.5 million, up € 25.9 million from € 797.6 million (+ 3.2%), driven by a significant increase in volumes in retail, new sales contracts and a better product mix, partially offset by a loss in foodservice volumes (from 20% share of Long Fresh sales in YY 19/20 to 13% in YY 20 / 21), induced by quarantine measures linked to COVID-19, causing a shift in domestic consumption to domestic consumption.

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Sales increased 8.7% to € 4,416.2m in YY 20/21. The sales growth came from both the Fresh and Long Fresh segments. The growing volumes linked to the intensification and ramping up of integrated client models are the main driver of this growth. At the same time, thanks to increased consumer awareness to maintain a healthier lifestyle and a transition to home cooking, due to lockdowns following COVID-19, retail volumes have increased. However, this was done to the detriment of the catering sector, which slowed down sharply.

Organic growth amounted to 9.9%, slightly offset by currency headwinds (-0.8%) and the effect of recent divestments and divestments (-0.4%).

Adjusted EBITDA (post-IFRS 16) also shows a strong increase of 17.6% to 156.9 million euros (for reference, pre-IFRS 16 increased by 21.8% to 116.6 million euros euros) directly linked to the growth in volumes within the framework of integrated customer models, positive price and mix differences as well as the full-year impact of the transformation initiatives initiated last year and the new actions of continuous improvement implemented mainly in the areas of sourcing, transport and purchasing. Greenyard did not record any EBITDA adjustment related to COVID-19, as the additional volume margins were more or less offset by the additional costs incurred to secure supply and operations.

The net result from continuing operations shows a return to profit of € 1.2 million against a loss of – € 68.0 million last year. This improvement is mainly driven by operational and commercial transformation, moreover, last year was strongly impacted by depreciation / losses on the disposal of subsidiaries and non-recurring transformation costs.

Excluding lease debt, net financial debt fell further from € 85.7 million to € 339.9 million at March 31, 2021. This translates into a leverage effect of 2.9x, compared to 4.4x Last year. The decrease is due to an increase in operating income and active management of working capital across the Group, while continuing to invest in long-term operations and business relationships. On the debt and leverage side, Greenyard succeeded in securing stable financing for the years to come by refinancing its bank debt in March 2021, including a capital increase of € 50.0 million and a reserved tranche of € 125.0 million. for the repayment of its outstanding convertible bond, due in December 2021.

Post-IFRS 16, at March 31, 2021, net financial debt stood at € 572.9 million, including € 232.9 million in rental debt.

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Fresh sales grew + 10.1% year-on-year, while sales within the integrated customer model grew 22.3%, including the ramping up of some of these more recent long-term relationships. Retail sales growth has been boosted in most geographies by COVID-19-induced measures from different local authorities, leading to a shift to home cooking, alongside increased consumer awareness to maintain a lifestyle healthy.

The segment posted organic growth of + 11.2%, with slight currency headwinds of -0.6%, and an M&A and disposals impact of -0.5%.

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In its Long Fresh segment, Greenyard was able to generate a significant increase in volumes in the retail trade, while suffering from the temporary loss of volumes in the catering sector (from 20% of sales share in YY 19/20 to 13% in AY 20/21). Since the last weeks of the previous fiscal year, the quarantine measures induced by COVID-19 have caused a shift from consumption away from home to consumption at home.

At the same time, new sales contracts and a growing share of sales of more expensive products, such as commodities and fruits, resulted in a total growth of 3.2%, proving a continuous strengthening of the activity. The segment posted organic growth of + 4.9%, slightly offset by -1.4% currency exchange rate and -0.3% impact of mergers and acquisitions and divestitures.

For full financial results, please click here.

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