Sligro still facing difficulties in Belgium

© Sligro

Sligro remains in a difficult situation in Belgium. The expected recovery last year failed to materialize, and sales fell by more than 10% at the beginning of this year. Losses for the last financial year amounted to €9 million, the same as the previous year.

Sligro, the Dutch food service provider, is struggling to grow and make a profit in our country. In April last year, the company expected a "strong recovery in sales growth" in the second half of the year, but in reality, sales fell by 10% in the third quarter and by 8% in the fourth quarter. For the full year, sales fell by 7.8% to €397 million. The operating loss before depreciation and amortization (EBITDA) remained stable at €9 million, resulting in a margin decline to -2.4%.

There are several reasons for Sligro's current predicament in Belgium. First, software problems have emerged in recent years, leading to invoicing errors and sometimes preventing some customers from receiving their orders. The takeover of the Metro network also didn't go smoothly. Second, the initially offered product range wasn't sufficiently tailored to the Belgian market. As a result, business is declining this year, with a drop in sales of more than 10%. CEO Koen Slippens makes no secret of this: "At the beginning of the year, it quickly became clear to us that market conditions would remain challenging, and that it was therefore important to focus on efficiency and cost savings. The high inflation that has been prevalent for many years has made consumers reluctant to spend, which has put pressure on our customers' sales volume and, therefore, on ours as well." "The company claims, as in previous years, that the problems have been resolved and that Sligro Belgium will now begin to expand.