The turnover generated through Royal FloraHolland’s auction clocks continues to decrease. The management board expects that if they keep a close eye on the costs, they’ll be able to break even the next three years. In the meantime, the auction is working hard on the development of a new revenue model.
Royal FloraHolland’s revenue model has been under pressure for a while. Their revenue from clock sales has been going down for several years. Just like in previous years, 2020 showed a further shift from clock sales to direct sales. It was a 2.4% shift this year, which was another increase compared with 2019.
In 2020, clock sales accounted for 38.3% (2019: 40.7%) of the total turnover, while the direct flows accounted for 61.7% (2019: 59.3%). Clock sales went down by 9.3% in total, while the turnover of direct sales went up by 1%. As a result, the auction’s revenue decreased by 7.4%, reaching a total of € 341 million (2019: 368 million).
The outlook for the coming year is more positive. Van Mechelen: “We had a good start of the year. At the end of the first quarter, our financial situation is better than expected. The turnover of flowers is 20% higher than in 2019, plants 10% higher and outdoor plants 28% higher.”
However, the turnover generated through clock sales will continue to go down the coming years. (..)
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