Key Financials H1 AY 22/23
Greenyard demonstrates resilience and robustness in profitability and volumes
November 2022
Resilience and robustness in unprecedented economic and geopolitical climate
Unprecedented times and market developments.
Greenyard is performing better than the market trend on pricing and volumes.
ICR provides stability. Traction for new ICR contract in 2023.
Inflation: cost pass-through is principle. Costs (energy, finance, labour) managed.
Positioning for the future, strengthening our base for accelerated growth
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Key Financials Group | Adj EBITDA and Net result remain close to H1 2021, while leverage and NFD improved vs Sept/21
1 | 2 | Despite economic turmoil with high inflation, supply | ||||
chain disruptions and a period of drought; the absolute | ||||||
Adj EBITDA ends close to last year (-2,7% vs LY) | ||||||
82,6 | 80,4 | |||||
+4,8% | +10,1% | |||||
Adjusted | ||||||
3,8% | 3,5% | EBITDA | ||||
margin | ||||||
In €m | In €m | H1 21/22 | H1 22/23 | |||
3 | Further reduction of leverage vs LY despite infla- | 4 | In line with the Adj EBITDA, the net result | |||
ting inventory value and continuing investments | remains close to last year | |||||
390 | 2,8 | 2,9 | ||||
370 | 2,7 | 2,8 | 8,5 | |||
7,1 | ||||||
2,7 | ||||||
350 | 338,1 | |||||
328,4 | 2,6 | |||||
330 | 19/20 | |||||
2,5 | ||||||
310 | 2,4 | |||||
290 | 2,3 | |||||
H1 21/22 | H1 22/23 | In €m | H1 21/22 | H1 22/23 |
Pre-IFRS 16 calculation | NFD (in €m) | Leverage |
3 | * Reported sales: € 2 190,5m in H1 21/22 and € 2 301,9m in H1 22/23 // * Divestments: Prepared Netherlands and Bardsley Fruit Enterprises in July 2021 and Fresh UK in March 2022 (in process) |
Key Financials Segments | Some margin pressure and limited volume decline in Fresh; volume growth and effective inflation management in Long Fresh
Fresh | LfL** sales increased by 5,9%, Adj. EBITDA by -9,6% | |
1 879,6 | ||
3,0%* | 2,6%* | |
1 774,5 |
54,5 | 49,3 | |||||
H1 21/22 | H1 22/23 | |||||
In €m | ||||||
LfL Sales | Adj EBITDA | |||||
- Fresh LfL sales amount to € 1 879,6m, up € 105,1m from € 1 774,5m LY (+5,9%).
- Sales within the integrated customer relationships remains stable at ~74% of Fresh revenues which provides a more stable financial basis for the business.
- Overall, negative volume effect of -3,0% related to more out of home consumption post- COVID. Sales price increases amount to 8,9%. Price dynamics in Fresh is not only driven by cost inflation but also by supply-demand volatility in the many F&V categories.
- Adjusted EBITDA in H1 22/23 is slightly lower than in H1 21/22, as the inflation of input costs could not be fully translated in sales price increases given the high price pressure within retail and lower consumption rebalancing post-COVID.
- We continue working on achieving operational efficiencies & synergies and try to accelerated gains where possible.
- We have committed € 19,7m capex in Fresh in H1 22/23, with some delays in ordering and implementation due to the economy.
Fresh | LfL** sales increased by 14,5%, Adj. EBITDA by 10,5% | ||
Long | 7,4%* | 390,6 | 7,9%* |
341,1 |
28,1 | 30,9 | ||||
H1 21/22 | H1 22/23 | ||||
In €m | |||||
LfL Sales | Adj EBITDA | ||||
- Long Fresh sales amounts to € 390,6m, up € 49,5m from € 341,1m LY (+14,5%).
- LfL sales are growing double digit (+14,5%) of which 5,4% is driven by additional volume mainly thanks to food service returning back to the pre-COVID level.
- Growth with both established and new customers. 9,1% of the sales growth is explained by sales price increases to cover the inflation in all cost categories.
- The Adjusted EBITDA of Long Fresh increases from € 28,1m to € 30,9m (+9,9%). The positive impact of volume growth is partially offset by production inefficiencies caused by lower crop yields due to drought and scarcity in labour. It also includes a one-off recovery of previous years' contributions related to water management.
- The Adjusted EBITDA margin of Long Fresh evolves from 7,4% in H1 21/22 to 7,9% in H1 22/23 which is also impacted by the divestment of Prepared NL in august last year which operated at lower margins.
- We have committed € 18,6m capex in Long Fresh in H1 22/23.
* Adj EBITDA margin is calculated on the basis of reported sales | |
4 | ** Divestments: Prepared Netherlands and Bardsley Fruit Enterprises in July 2021 and Fresh UK in March 2022 (in process) |
Net result evolution | As the total of 'below adj EBITDA' items remains stable, also
the net result ends close to last year
In m€ | H1 21/22 | H1 22/23 | Growth |
Sales | 2 190,5 | 2 301,9 | 5,1% |
Cost of sales | -2 041,6 | -2 155,9 | 5,6% |
Gross Profit | 148,9 | 146,0 | -2,0% |
% gross margin | 6,8% | 6,3% | -6,7% |
Overhead | - 116,9 | - 118,6 | 1,5% |
% overhead on sales | -5,3% | -5,2% | -3,4% |
EBIT | 32,0 | 27,3 | -14,7% |
Net finance cost | - 17,8 | - 13,9 | -21,9% |
Result before income tax | 14,2 | 13,4 | -5,7% |
Income tax expense | - 5,7 | - 6,3 | 9,8% |
Net result continuing operations | 8,5 | 7,1 | -16,1% |
Discontinued operations | 0,0 | 0,0 | - |
Net result | 8,5 | 7,1 | -16,1% |
EBIT | 32,0 | 27,3 | -14,7% |
Depreciation and amortisation | 49,8 | 49,7 | -0,3% |
Impairment PP&E | 0,2 | 0,0 | -100,0% |
EBITDA | 82,1 | 77,0 | -6,2% |
Reorganisation costs | 1,0 | 1,6 | 60,6% |
Corporate finance related project costs | 0,0 | 0,4 | 1055,2% |
Costs related to legal claims | 1,6 | 0,1 | -91,1% |
Result on sale of assets | 0,0 | - 1,0 | - |
Other adjustments | 0,3 | 0,2 | -15,8% |
Adjustments | 2,9 | 1,4 | -52,5% |
Result on sale of divestitures | - 2,7 | 0,0 | -100,5% |
Current year EBITDA of divestitures | 0,4 | 2,0 | 398,5% |
Divestitures (not in IFRS 5 scope) | - 2,3 | 2,0 | -186,9% |
Adjusted EBITDA | 82,6 | 80,4 | -2,7% |
% Adjusted EBITDA margin | 3,8% | 3,5% | -7,4% |
Net finance cost: Positive interest hedge result partially compensated by expensing transaction cost on previous financing; interest costs stable with a shift from convertible bond to bank and L&LB financing
Income tax expense: despite a decrease in current tax, a slight total increase of taxes due to positive deferred taxes last year
Depreciation & amortisation: in line with previous year despite stepping up investments, however, delayed due to the current economic situation
Reorganisation costs: costs related to organizational changes to further develop the Fresh segment organisation
Result on sale of assets: sale of unutilized land in the Long Fresh segment
Current year EBITDA of divestitures: relate to the divestments of Prepared NL and Bardsley in AY 21/22 and to Fresh UK (in process)
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Greenyard NV published this content on 14 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2022 15:24:01 UTC.