It has been a flourishing year for the floriculture industry. Royal FloraHolland traded a total of 12.5 billion products in 2016, an increase of 0.3%. The company has posted turnover of €4.6 billion, up 3.8% from last year.
The auctions in Aalsmeer, Naaldwijk, Rijnsburg and Eelde, along with the online FloraMondo platform, process more than 100,000 transactions a day, involving thousands of varieties of cut flowers, house plants and garden plants. Royal FloraHolland CEO Lucas Vos: ‘We are on track to achieve our goals for 2020: improving profit margins for our members and their customers and promoting the sale of flowers and plants in the consumer market.’
The turnover increase is driven mainly by the higher prices growers received for their flowers and plants. Price levels rose by an average of 4.2%, while total turnover from cut flowers reached €2.7 billion – an increase of 6.7%. Turnover in the house plants product group fell by 1.3% to €1.5 billion. Turnover from garden plants increased by 4.7% to nearly €0.4 billion.
Exports to record levels
Dutch exports of flowers and plants reached a record level of €5.7 billion in all, up 3% from the previous year. Exporters of floriculture products expect this positive trend to continue in 2017.
The largest market for Dutch flowers and plants is and remains Germany. Exports in this market increased by 7% to more than €1.6 billion, accounting for 61% of total export growth. Exports to other European countries also increased further, with the exception of the United Kingdom, where the strong decline of the British pound had a dragging effect. Russian exports continued to be impacted by the trade sanctions that remain in place.
Revenue and ratios: solid foundation
Royal FloraHolland’s revenue decreased marginally by 1.3%, to €378 million, while operating profit increased by 3.8% to €27 million. Operating profit excludes the costs of Strategy 2020, the recent corporate reorganisation and profit from participating interests.
The company’s financial ratios have remained level, with a solvency rate of 25.1% and a risk-bearing capital base of 54.9%. ‘Our revenue and ratios provide a solid foundation for the future,’ CFO Steven van Schilfgaarde said.
Responding to market trends
Lucas Vos: ‘Royal FloraHolland is the world’s largest marketplace for flowers and plants. The floriculture industry is constantly changing and evolving, with digitalisation being the main driver. We are responding to these changes by integrating all digital trading instruments into our upgraded Digital Trading Platform. Digital is the new standard!’
‘Our strategic programmes are finding their way to consumers and to new markets outside Europe.
In addition, we are developing new concepts for the domestic and international markets. Examples of such initiatives include the international innovation project Let it Grow, which supports and connects “green” businesses. This is our way of boosting innovative concepts and meeting consumers’ changing needs.’
Incorporated Sustainability Report
This is the first year that sustainability constitutes an integral part of the Royal FloraHolland annual report. The cooperative highlights its sustainability objectives by setting clear targets. ‘I am pleased to see our members and their customers embrace sustainable standards and practices and develop sustainable initiatives and concepts. Our unique role enables us to support them in this process as a representative of the floriculture industry in interactions with government authorities, NGOs and retailers. The purpose is to establish a set of rules and procedures that will gradually make the industry more sustainable. I firmly believe that consumers will embrace floriculture products even more in the future as part of a sustainable and healthy lifestyle.’