Royal FloraHolland closed 2024 with a positive result, according to the 2024 annual report published on 4 April. The pre-tax result is 10 million euros; after tax, 6 million euros. This is above last year’s expected break-even result. Product sales increased by 5% in 2024 compared to 2023, reaching 5.3 billion euros (2023: 5.1 billion euros). This is the second-highest turnover ever (2021: 5.6 billion). The good turnover is mainly explained by the increase in the average unit price for flowers (11%), partly due to a 2% lower volume. The average unit price for plants remained the same as last year, as did the number of units.
Strengthening the floriculture chain
Pieter Bootsma, CEO since 1 January 2025: ‘In 2024, we have focused strongly on the further development of the logistical and digital floriculture platform, which forms the basis for all Royal FloraHolland activities. With this RFH platform, we are successfully responding to changes in the floriculture sector, such as digitization, varying volumes per transaction and economies of scale. We adapt the services provided to the changing needs in the market and continuously work on increasing the efficiency of our processes. We have made changes to the organisation and the way we work, enabling us to work more efficiently and effectively. Our Strategy 2030 has four spearheads: expanding day trading, better connecting with growth segments in the market, a financially strong cooperative and strengthening our hub network. These are concrete strategic choices in which we build on our solid foundation.’
Bootsma emphasizes the great importance of making the sector more sustainable. ‘From 2026, the vast majority of sales will come from growers with a sustainability certificate. We will support small-scale growers to also be certified by 1 July 2027 at the latest. I see this as a necessary condition for public support for floriculture. This opinion is widely shared in our
sector, both among our growers and in the trade.’
Strongly improved result
Royal FloraHolland has a very solid financial foundation. CFO David van Mechelen: ‘We want to be structurally in the black. After two years of losses, that was a tough promise to keep last
year. The result for 2024 was 23 million euros better than in 2023. Our income was positively influenced by the better price for flowers and thus more commission.
The higher rates for growers and buyers also generated more income. In addition, we have tightly managed costs, with the Fit for Future programme already contributing in 2024, offset by a provision. The 4% collective labour agreement increase has only led to 1% higher wage costs, partly due to a reduction in indirect personnel and a further improvement in productivity in logistics. Our energy costs last year were 8 million euros lower than in 2023, while we also realized savings through a more professional purchasing policy.
Throughout the company, there is an awareness that cost efficiency is of strategic importance and this has been acted upon. Unfortunately, Floriway again made a loss in the same order of magnitude as in 2023. However, there was a positive trend reversal, as the financial performance in the second half of the year was better than in the first half. New management and adjusted business operations are starting to pay off.’
Future-proof marketplace
Solvency improved slightly in 2024 and free cash flow was positive. Royal FloraHolland already invested heavily in the future last year, to the tune of 83 million euros. Over the past year, they have been working on a comprehensive and detailed investment plan for the coming years, aimed at making their hubs more sustainable and futureproof. They are currently discussing this with their members. It is also felt that they have the full confidence of their banks. This is partly demonstrated by the refinancing of their 210 million euro facility, which they finalised in 2024. To date, they have only made limited use of this facility, but they expect to make more use of it in the coming years. Furthermore, this facility has now been converted into a Sustainability Linked Loan, where the interest rate is linked to the achievement of sustainability objectives. This year, they have again taken an important step in the sustainability reporting in the annual report. They will continue to do so in order to be able to report fully CSRD-compliant in a timely manner.
For more information: https://www.royalfloraholland.com/