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Higher prices increase revenue for FloraHollandIn cumulative terms, the revenue for 2016 at Royal FloraHolland underwent an increase of 3%. This is a great result considering that the revenue developments of the past few years have hovered around 1%. The revenue increase is due to higher prices. The total supply decreased by 0.7%, while the prices rose on average by 4%.
The revenue between 5 and 31 December 2016 (period 13) was 14.4% lower than in period 13 of 2015. This period had 19 auction days, in contrast to 22 auction days in 2015, so it was already evident that the level of 2015 would not be realised in 2016. Three fewer auction days correspond to €53 million less revenue.
The Christmas sales followed almost identically the pattern of Christmas sales in 2015. Due to the staggered weeks, more was sold this year in week 50 and less in week 51. On balance, there was little difference between the two years.
The supply declined more strongly than the revenue, down by 17%. Partly as a result, the average price of the total supply rose to 43.4 cent per item for flowers and plants, the highest average price ever for period 13.
Share of direct trade increased
For cut flowers, the share of direct trade rose by 1.8%-point to 34.3%. For houseplants, the increase amounted to 1%-point to end at 79.4%. And for garden plants, the increase was 2.7%-point up to 67.4%. In 2016, 51.4% of the total revenue was realised through direct trade. In 2015, this was just above 50%.
Export increase of horticultural products 4.7%
In November, the export of horticultural products rose. The export of plants increased by 8% and of cut flowers by 2%. In two countries, the export decreased: the UK and Russia. Exports to the UK dropped in November by 11%. This decline has remained on average around 11% since the Brexit result. Exports to Russia decreased by 16%, considerably less than the average of 30%.
Happily, there are also many countries buying more flowers and plants:
- Germany, increase of 9%
- France, 6%
- Belgium, 18%
- Poland, 15%
Source: Floridata (the export figures for November from Floridata are the most recent export figures).
If we look at the growth in export and the growth of Royal FloraHolland, the figures do not differ much and end up with the same level of growth at the end of the year.
Revenue decline for flowers and plants
The revenue of cut flowers decreased in this period by 14% because of the three fewer auction days in December. The supply dropped by 17%, and the average price rose by 4%. The drop in supply was spread over the entire range of the assortment.
The revenue of houseplants also declined by 16% because 19% fewer items were supplied. The average price rose by 3%. Here, too, the drop in supply was spread over the entire range of the assortment.
Finally, the revenue of garden plants decreased by 14%. The supply dropped by 19%, and the average price rose by 7%. It was striking that the supply of Helleborus increased by 30%. The average price of this product dropped by 21%.
Source: Royal FloraHolland
Publication date: 1/9/2017
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