In 2018, 12.1 billion flowers and plants were traded at the Royal FloraHolland marketplace. Product sales amounted to € 4.65 billion, a slight decrease of 0.8% compared to 2017. The warm summer in Europe and the cold weather conditions in the most important production areas in Africa are an explanation for this. The average prices were slightly higher in 2018 than in 2017. The flowers and plants were supplied by 5,550 suppliers and purchased by 2,465 customers. This is apparent from the 2018 annual report that was published on 15 April 2019.
Customer satisfaction greatly improved
CEO Steven van Schilfgaarde: "We focus on developing the combination of the digital and physical marketplace for flowers and plants. That is where our future lies. Royal FloraHolland develops new services in the area of deal making, financial settlement and logistics, aimed at growers and their buyers. Services that make our customers successful. The extra attention to improving daily services and the focus on our core activities has paid off. Major investments were made in 2018. As a result, customer satisfaction improved greatly in 2018. " The success of the Floriday digital platform is increasing every month. At the end of 2018, 1,200 growers were already connected. The Blueroots joint venture, which has been cooperating with trading parties since the beginning of 2019, provides a solid boost for the digital marketplace. In addition, functionalities are constantly being added to Floriday based on the needs of customers. There are also more and more apps linked to the digital platform. Active use is therefore increasing rapidly.
Solid financial position
Royal FloraHolland has achieved significant cost savings in its own operations through efficiency improvements. Total operational costs decreased by 4.1% in 2018 to € 282 million. A total of € 80 million was invested in 2018 in areas such as digital, real estate and logistics. CFO David van Mechelen: "Royal FloraHolland is in good financial shape. The financial ratios are at the same level, with 27.2% for solvency and 55.7% for risk-bearing capital. There are still sufficient opportunities to improve the efficiency of our business operations and processes This is necessary because we will continue to roll out our strategic program in the coming years and therefore continue to invest and innovate. At the same time, we always want to show a positive result at the end of the year. "
Royal FloraHolland is committed to a future-proof floriculture sector in which flowers and plants are grown and traded with respect for people and the environment. As a participant in the Floriculture Sustainable Initiative, Royal FloraHolland is committed to making the production of members more sustainable. The target for 2020 is to have 90% of the products grown and traded sustainably. In 2018 the percentages were 40% for flowers and 63% for plants. Sustainability also includes the use of sustainable packaging. Royal FloraHolland is one of the signatories to the Plastic Pact.
About Royal FloraHolland
With more than 100,000 transactions per day and more than 30,000 different types of flowers and plants, Royal FloraHolland is the international marketplace and knowledge partner that contributes to the success of growers and buyers. Royal FloraHolland has an annual turnover of 4.65 billion euros, 4,031 members and 2,465 buyers. 12.1 billion flowers and plants were sold in 2018. In addition to the Floriday digital platform, Royal FloraHolland has 4 physical market places where numerous logistics and other service activities are performed. These physical hubs are located in Aalsmeer, Naaldwijk, Rijnsburg and Eelde. Royal FloraHolland offers the possibility of digital and physical auctioning through 35 auction clocks.