Higher-than-expected energy and IT costs weigh on Sligro

In a market disrupted by geopolitical tensions, the Netherlands' leading foodservice wholesaler anticipates energy costs to rise by at least €500,000 per month. Added to this is an unwelcome accounting impact: Sligro Food Group must reclassify expenditures for its new ERP system, moving them from capital expenditure (CapEx) to operating expenses (OpEx). This shift risks denting its 2026 results by €12 million.

© SLIGRO FOOD GROUP

It is a SaaS agreement after all! Following extensive discussions with its auditors, Sligro concluded that its new ERP – the software ecosystem centralizing all company data and processes – is considered a cloud service. "According to IFRS standards, this requires a different accounting treatment than initially planned and integrated into our 2026–2030 roadmap," explains the appendix to the quarterly results released this Thursday by CEO Koen Slippens and CFO Rob van der Sluijs.

This is no minor detail; it represents a significant negative impact on the operational profitability of the Netherlands' top hospitality wholesaler. Consequently, the majority of the budget allocated to this digital transformation must now be treated as operating expenses (Opex) rather than capital expenditure (Capex).

This will impact 2026 EBITDA by €12 million, 2027 by €9 million, and 2028 by €4 million, estimates Fernand de Boer, Senior Equity Analyst at Degroof-Petercam. However, he highlights a positive nuance: "It has no impact on cash flow and it means higher EBIT and net profit beyond 2028 as there will be no amortisation of software."

Complex Market Environment

Sligro’s first-quarter performance shows a company in slight growth navigating a complex environment. Compared to the same period in 2025, total revenue reached €578 million, an increase of €4 million (+0.7%). In the Netherlands, the wholesaler outperformed the market with 0.8% growth to €492 million. In Belgium, revenue remained stable at €86 million.

Management cited several external factors for a "slow-starting market". First, unfavorable weather – a harsh winter discouraged consumers from going out in January, leading to lower volumes. This was followed by a calendar effect, with an early Carnival in February having little impact. However, good weather in March allowed for a partial recovery.

The wholesaler is observing pressure on consumption. Existing customers are buying in smaller quantities. "This is evident among our largest delivery customers, but particularly among smaller local food professionals in self‑service," noted the CEO and CFO. Sligro claims to be offsetting this decline by acquiring new regional customers and securing new delivery contracts.

Up to €1 million in extra energy costs… every month

The company must also contend with rising structural costs. Koen Slippens and Rob van der Sluijs pointed to geopolitical instability, particularly in the Middle East. "Based on energy price levels at the end of March, the rise in energy costs is expected to result in additional costs of €0.5 to €1.0 million per month," they detailed, planning to partially pass these costs on to the market.

Furthermore, Sligro is seeing initial price hikes from suppliers, which is expected to accelerate inflation. "There is no outlook. The main question is how consumers are going to react to the high gasoline prices," concludes the Degroof-Petercam analyst.