"To be future-proof, we have to bite the bullet for a while." So says CEO Eric Lauwers of Arvesta, which has made several acquisitions in agriculture and horticulture in recent years but expects a "challenging year" in 2023, to Boer & Tuinder. Net profit is under pressure. Sales are still rising, however.
"The high inflation we are facing in our country today is certainly part of the explanation. Inflation alone has caused a cost increase of 40 million euros in one year. We have increased our prices slightly, but we cannot pass this on completely to the growers and horticulturists, because they are not in a position to pass on their costs. But we had seen this drop in net profit coming, because we have invested heavily in recent years, both in acquisitions and in improving our internal processes. These are investments that have to be written off in the short term and thus put pressure on net profit. So it is a matter of biting the bullet for a few years because these investments are really necessary to make Arvesta future-proof."
Read more from Boer & Tuinder story in Boerenbond here. (NL)
