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Turnover FloraHolland first half 2018 almost similar to last yearIn the first half of 2018, the turnover at Royal FloraHolland amounted to €2.6 billion, a fraction less than the sum achieved in the first six months of 2017. The average price of flowers was 3.9% higher, of houseplants 0.3% higher and of outdoor plants 2% higher.
The higher prices compensated for the effect of a lower supply. The supply decreased by 4% and was due entirely to a drop in the supply of flowers. The supply of houseplants and outdoor plants increased in contrast. In terms of logistics, the key figures improved strongly compared to the first half of 2017.
Supply of cut flowers lower
The supply of cut flowers decreased by around 250 million stems, about half of which were roses. Particularly in May and June 2018 there was less supply from Africa, partly due to lower temperatures and lots of rain. In that period, prices were high. In June 2018 the average price of roses was almost 30% higher than in June 2017. The average price of the top 15 cut flowers was 22% higher in that month than last year, with an increased turnover of 10% for the top 15 as a result.
Turnover of houseplants increased
Among houseplants, the turnover increased by 1.1% because both the supply and the average price level increased. Within the group of houseplants, the price of Phalaenopsis (orchid) is under pressure. The average price of this product dropped by almost 10%, while the supply increased 5%. Around 85% of the pot orchids was sold via direct sales and the remaining 15% via the clock. Growers who know how to keep customers faithful are still doing well. What is striking is the strongly growing popularity of arrangements. The supply of them grew in the first six months by 65%.
False start of the outdoor plant season
The outdoor plant season suffered a false start in 2018. Due to a cold period in the middle of the violet season, the prices of, for example, violets were put under great pressure. The lag that developed was caught up over the course of the first six months. The first half-year concluded with a rise in turnover of 2.8%. The supply increased by 0.7%, the average price level rose by 2%.
Logistic service provision improved
The share of the clock in the total turnover decreased slightly in the first six months compared to the same period in 2017, from 43% to 42%. The share of direct sales was thus 58%. The key logistical figures were better for all components than in the first half of 2017. The measures taken, like auctioning early, are clearly having a beneficial effect. The handling times were substantially improved for both clock transactions and direct ones. For clock transactions, 95.4% of all orders is realised as promised, an improvement of 4% compared with 2017. For direct transactions, the handling time is shorter than 1 hour in 98% of orders, an improvement of 11%.
Source: Royal FloraHolland
Publication date: 7/12/2018
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