Hortifrut reports first-quarter earnings
Hortifrut, world leader in the production and marketing of fresh and frozen berries, reported its financial results for the first quarter, maintaining its performance and good results.
During the first quarter, the Company generated an EBITDA of $ 51.74 million, increasing by 106.39% compared to the US $ 25.07 million obtained in the same period of the previous year. In turn, the profit attributable to the owners of the parent company reached US $ 17.75 million, an increase of US $ 16.37 million compared to the profit of US $ 1.38 million registered in the first quarter 2020.
This better results are mainly the consequence of the good returns from the company’s operations in China and Mexico; as well as the excellent performance of its commercial platforms, its genetics business and the start of the production of raspberries of proprietary varieties in Portugal, which is expected to increase significantly in the coming years.
In the case of China, the Company has 270 hectares planted that are in the process of maturing and that increased their volume by 101.44% between first quarter 2020 and first quarter 2021, reaching 1,544 tons. The Company expects to reach at least 500 hectares planted by 2022.
On the other hand, in Mexico, investments in almost 500 hectares of blueberries and 250 hectares of own raspberries, plus 220 hectares with third-party producers of our proprietary variety “Centennial”, had their first harvest, reaching a total of 1,578 tons during this quarter, an increase of 93.05% over the first quarter of 2020.
All these factors resulted in an income from ordinary activities of the Company that reached US $ 244.07 million, representing an increase of 38.19% compared to the first quarter of 2020. The excellent performance of its commercial platforms, the execution of the strategy, and knowledge of its customers and markets, allowed it to commercialize a total volume of 30,256 tons, which represents an increase of 34.20% compared to the same period of the previous year, and still achieve a 4.02% increase in the average price per kilo.
Additionally, the growth of the genetics business, which has its own and licensed varieties and which are planted both in its own fields and those of third parties, reached an EBITDA of more than US $4 million during the first quarter of 2021, an increase of 660% over the first quarter of the previous year.
Finally, the Company decided to invest in a new blueberry packinghouse located in the town of Mengzi, China, whose capacity to process 120 tons per day in season, makes it the largest in Asia. From this operation Hortifrut will be able to supply all customers in the region with the high level of service that characterizes it.
As Juan Ignacio Allende, CEO of Hortifrut, points out, “for us it has always been essential to deliver a superior and excellent service, and this new investment in China is no exception, especially with regard to product traceability, whose follow-up from our farms to distributors and supermarkets is fully digitized, thus ensuring the highest standards both in food safety and in the quality of the fruit we deliver ”.
