Avebe performance price rises to 96.15 euros

CorporateNewsThursday, 19 Nov 2020

Veendam, 19 November 2020 – In financial year 2019/2020 Royal Avebe achieved a performance price of 96.15 euros. This is a fraction below the record result – 96.63 euros – of the previous financial year. The cooperative result after tax was EUR 8.7 million compared with EUR 5.2 million in the previous year.

The financial year was strongly influenced by two developments: the second consecutive year of extreme drought in the summer resulting in a very poor harvest, and the outbreak of the corona pandemic in March 2020. Chairman of the board Bert Jansen: “In a year in which our members once again faced drought and high temperatures and in which the coronavirus struck worldwide, we have achieved a good result.”

Positive result

The positive result is due to a combination of factors. The coronavirus lockdowns led to a different eating pattern worldwide. For Avebe, this meant that there was less demand for food ingredients for restaurants, but more demand for ingredients for long-life products such as instant noodles and pizzas. The production locations also ran without any serious malfunctions, leading to a good output volume. Despite that, it was another difficult year for many of the members. This financial year’s harvest was another disappointing one due to a hot and dry growing season.

The impact of COVID-19
Almost immediately after the coronavirus outbreak, a proactive approach was taken to protect the health of employees and to allow critical business processes to continue as much as possible. Examples include hygiene measures, working from home and alternating between permanent shifts at locations. The coronavirus caused many uncertainties, such as the delivery of products to customers. “We’re in a second lockdown now, which is once again creating a lot of uncertainty. It is difficult to predict what the final impact will be, but fortunately only a small number of our colleagues have tested positive, product sales are going well and the factories are running to our complete satisfaction,” says Bert Jansen.

Performance price
The performance price is the Cooperative’s key financial indicator. It combines the cooperative result and the potato revenues. The cooperative result totals 8.7 million euros. Avebe has invested more than 39 million euros in the past financial year, mainly in innovation and sustainability.