FloraHolland turns over €4.6bn in 2015
Royal FloraHolland turned over more than €4.6 billion in flower and plant sales in 2015. Turnover has risen by 1.4 percent compared to 2014.
Lucas Vos, CEO Royal FloraHolland, says: “People continue to enjoy beautiful flowers and stylish plants in their homes, gardens or on their balconies which is why, in general, our growers and their customers can look back on a great year.”
More direct trade
Although there are differences per product, growers on average received 0.9 percent higher prices for their flowers and plants than the year before. Roses, tulips and chrysanthemums scored well in 2015, as did orchids and hydrangeas. Royal FloraHolland last year sold less through the auction clock, meaning that turnover fell by one percent; whereas turnover from direct sales between growers and traders rose by 3.8 percent.
Operational management positive
Royal FloraHolland’s operational management is in a positive position. Despite the shift from clock sales to direct trade, Royal FloraHolland’s revenues amounted to €392 million in 2015 compared to €393 million in 2014. These are incomes from sources such a commissions, levies and rental. Operational costs fell more than expected by €7 million to €377 million. This is down to lower staff costs and lower depreciation costs due to fewer investments and the sale of real estate. Solvency improved in 2015 from 23.4 percent to 24.8 percent, and risk-bearing capital increased from 49.4 percent to 54.4 percent.
Royal FloraHolland 2020 Strategy
Royal FloraHolland took significant steps in 2015 regarding the 2020 strategy. This strategy comprises six programs and is necessary for various reasons, such as changes in the ornamental-plant trade and new technological developments. According to Lucas Vos: “2020 will be an important year. We want more people buying more flowers and plants, and we want to achieve better margins for our members and their customers.”
Tomorrow’s Auction is one of the most important strategic programs, and two of its main aims is to provide an answer to declining clock sales and increasing direct trade. Together with members and customers, Royal FloraHolland is working on an online round-the-clock market place with dynamic pricing that works just like booking websites for plane tickets and hotel rooms. The logistical service provision will become easier and more efficient, and better aligned with customers’ wishes.
World Flower Exchange
With the World Flower Exchange program, Royal FloraHolland intends to sell more flowers and plants in new markets. Royal FloraHolland aims to turn over €1 billion through this platform in 2020, with €200 million of this in China. Lucas Vos: “The Chinese love Made in Holland. We expect to turn over €10 million this year.”
Photo credit: Horti-Images
05/23/2016 – Royal FloraHolland