Royal FloraHolland is looking at another loss year, with losses perhaps even greater than last year. In 2022, the auction suffered a loss of EUR 4 million, caused in part by the bankruptcy of Floriworld as well as the high energy prices and wage costs.
„2023 won’t be an easy year,” said CFO David van Mechelen during RFH’s annual report press conference. The economic and market circumstances remain difficult. In addition, Van Mechelen expects a further increase in the auction’s expenses. The falling energy prices do not benefit RFH yet since part of its energy supplies in 2022 still consisted of cheap energy procured in 2019 and 2020, unlike this year’s supplies.
Van Mechelen expects a slightly greater loss in 2023 than in 2022. In part, this is due to the recent new wage agreements with the unions, as well as to supplier costs and pressure on production volume. Van Mechelen added that, despite its losses, RFH will continue to invest and manage the costs. Last year, the auction invested EUR 90 million, an amount that will be exceeded this year. Investments will include Dockservices (import processing), the IT landscape, further expansion of Aalsmeer-Oost and logistical assets, such as trolleys and containers. After Easter, RFH will start marketing plots at the Aalsmeer-Oost site.