Dutch Covid losses less than feared

Although Royal FloraHolland knew losses were likely as a result of the pandemic, the level is far less than first feared in the early days of the corona crisis.

The financial result before extraordinary income and expenditure is now expected to be in the region of -5 to -10 million euros although the audit of the 2020 annual figures has not yet been finalised. Instead and due to the uniqueness of 2020 and the year of the covid-19 pandemic, they have decided to present a preliminary report.

David van Mechelen, CFO of Royal FloraHolland said: "Given the immense withdrawal in March of last year and the ensuing massive fall in sales, this is a result we can live with. Supply volume, which was lower last year, has had a major impact on our revenues. Various factors have prevented a loss of many tens of millions. For example, the opening of freight transport borders and entrepreneurship within our sector. The Emergency Fund also brought calm and continuity and helped growers continue to produce. The market thus recovered quickly. In addition, RFH has managed to achieve substantial additional cost savings within its own organisation, while we have continued to invest in strategic programmes."

Nevertheless, volumes still remained at a slightly lower level than the year before in the second half of 2020, but pricing was very positive. In the end, Royal FloraHolland was ineligible for the NOW scheme(s) and the Floriculture Emergency Fund on the basis of its results. The figures will be announced as soon as they have been finalised.  In addition and following an amendment to the articles of association in 2015, losses are no longer apportioned to members but are charged to the general reserve of RFH.