The world faces a huge challenge: according to studies by the United Nations, by 2050, there will be more than nine billion people that have to be fed. Furthermore, the number of middle-class people will grow from two to five billion over the next 15 to 20 years, mostly due to demographic developments in Asia. The effect of this should not be underestimated. Demand for consumer goods from these new middle-class groups will grow accordingly. Increasing consumer needs are expected to lead to demand for food, water and energy rising by 35%, 40% and 50% respectively from current levels. This poses huge economic, ecological and social challenges for our world. Sustainability has long ago passed the point of being simply an issue of caring for the environment. It is a serious matter in which the survival of humanity and our living and working environment is at stake. The need for sustainable innovation is becoming increasingly urgent.
These issues are directly reflected in the activities of Royal Reesink. The demand for cleaner, smarter and more efficient equipment and processes will inevitably continue to increase in agriculture, landscape maintenance, logistics and civil engineering. By offering sustainable and innovative solutions with respect for people and the environment, we can make a positive contribution to meeting the challenges that the world faces.
With its specialist knowledge of products, processes and markets, Royal Reesink aims to be an essential link in the distribution chain by translating market feedback in partnership with the manufacturers into innovative and sustainable solutions that offer added value for dealers and customers and support them in their activities.
Royal Reesink believes that scale and the use of specialist knowledge are important requirements for a distributor to be able to optimally serve customers and add value for all stakeholders. The company accordingly has strong ambitions for international growth. The long-term oriented strategy is focused on achieving growth, both organic and through acquisitions, and on focusing even more on giving customers peace of mind. Growth through acquisitions is not an end in itself. Acquisitions need to represent a good match, be opportune and justified and contribute to earnings.
In pursuing organic growth, Royal Reesink focuses on strengthening its market share in market sectors and regions in which it is already active. To that end it primarily targets a further roll-out and stronger implementation of the business model and full-service concept throughout the group. Utilisation of the increase in cross-selling opportunities between divisions and between businesses within divisions, the further roll-out of the rental and service concepts within the group and increasing income from the sale of used machines are significant spearheads in that connection. The intensified focus on innovative solutions in the field of connectivity and measurability, for instance through precision agriculture and the robotisation of conventional machines and systems, offers good opportunities for extra growth.
Growth by acquisitions
Royal Reesink always aims for a leading position as a distributor in the countries or market sectors in which it is active. To achieve growth through acquisitions Royal Reesink looks at new product/market combinations and niches in the countries where it already has a presence. Expansion into new countries or regions and emerging markets takes place primarily through acquisitions. Candidates for acquisitions are often identified by teaming up with a manufacturer. Royal Reesink also independently pursues acquisitions for specific niche markets on a selective basis. This can enable it to originate a relevant development in the chain or sector. Acquisitions are required to match the business model and the profitability profile that Royal Reesink applies or must have the potential to do so under the wings of Royal Reesink. Royal Reesink has a strong track record in the field of acquisitions with a tried and tested integration concept and also possesses a great deal of knowledge and experience of its own that can be used to enter emerging markets. Royal Reesink is therefore often seen by manufacturers as a strong and logical partner for expansion.
Improvement of margins
Margin improvements are driven primarily by a shift to activities and services with greater added value and better utilisation of potential synergies between segments and divisions. In addition, ongoing initiatives relating to cost control, flexibilisation, optimisation of the IT infrastructure and utilisation of benefits of scale are significant spearheads.