In This Article:
Release Date: November 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Greenyard NV (XBRU:GREEN) reported a 6.1% increase in top-line revenue, reaching 2.6 billion, driven by both volume and price components.
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The company's net financial debt decreased by 11.2% to 280 million, despite increased inventories and acquisitions.
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Greenyard NV's food and vegetable segments continue to be strong traffic drivers in retail, gaining market share.
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The company is making significant progress in ESG initiatives, with over 60% of energy now from renewable sources.
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Greenyard NV is investing in modernization and capacity expansion, such as the new car packaging line and increased frozen factory capacity in France.
Negative Points
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Net results were lower than last year, at 1.2 million, due to restructuring costs and higher depreciation.
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The company faced operational challenges due to political circumstances, supply chain issues, and adverse weather conditions.
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There were quality issues and increased costs in the fresh segment due to supply chain disruptions and poor weather affecting produce.
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Restructuring efforts, including closing facilities in France and Germany, led to significant costs.
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The long fresh segment experienced a decrease in volume, attributed to poor weather conditions affecting harvests.
Q & A Highlights
Q: ITR sales in fresh went up from 78% to 79%. Is that because we do more with the same client, or did the number of ICRs increase? How many ICRs do you have, and how much of the 79% is covered by the top five? A: The main reason is that we grow with these customers. We've been fortunate that these customers have been doing particularly well in many countries. Last year, we took on another medium-sized German retailer for which we're delivering the entire food veteran, but it wouldn't be in these numbers.
Q: Did I understand it correctly that the branch in Munich was completely closed, but the locations in Hamburg, Bremen, and Ginsheim will continue to exist? A: Yes, the branch in Munich was closed, but the other locations are relatively huge and will continue to operate. We had a duplication issue with another ripening facility, which led to the closure. The other locations, such as Hamburg, Dib, Leipzig, Ginsheim, and Egg, are of significant dimension and will remain operational.
Q: Was the restructuring cost in Germany 5.4 million? A: The difference with last year is 5.4 million in restructuring costs. Last year, we had a one-time benefit of selling two buildings, which led to a book profit of 0.9 million. This year, we took restructuring costs of 4.5 million. From that 4.5 million, close to two-thirds were linked to the closing of France, not Germany. So Germany was less than a third of the restructuring provision of 4.5 million.