Green shoots appear for Greenyard as it sets out on road to recovery
Greenyard appears to be making ground as it seeks to recover from poor financial figures that have left the company heavily indebted. The firm sent out a press release stating:
“Greenyard decides to continue on its own, based on encouraging recovery in the first half of the year. This eliminates the need to raise capital or to further investigate the sale of Belgian prepared activities.”
The firm failed in its attempt to reduce debts through a capital increase and the sale of a large division. Fortunately for the company, crisis manager Marc Zwaaneveld has managed to boost profits. According to Martin Crum of the IEX Investor Desk, Greenyard’s debt is still “dangerously high”. The debt ratio is still above 7 and must be reduced rapidly to 4 by the end of 2021. The company had committed to reducing it to 3.
The banks appear to trust that new co-CEO Marc Zwaaneveld can improve profitability. In the first half of the year, gross operating profit was up 15.7% or €6.4 million. The goal is to reach an annual gross operating profit of €88-93 million.
On hearing the news that Greenyard is to be granted more time to repay debts, the price of the firm’s shares climbed to €6.80, before dropping back to around €5.