HZPC

News Potatoes

HZPC's sales remain just below one million tons

May 7, 2024 - Jesse Torringa

Seed potato breeder Royal HZPC expects a 4% increase in turnover for the fiscal year 2023/24. The net result is expected to be similar to the previous result. The company reports. In addition, more oversized seed potatoes have been sold than previously anticipated.

The potato breeder and trading house indicates that low seed potato yields, especially in the Netherlands, are causing a 6% decrease in the expected tonnage that has been or is already sold in Europe. However, there is expected to be a 23% growth in the licensed tonnage. HZPC attributes this to positive developments in America and Asia.

Due to the changing ratio between direct sales and tons produced by licensees, combined with the increased selling prices from the past season, Royal HZPC's expected financial turnover is set to increase by 4% compared to the previous fiscal year. In the 2022/23 fiscal year, a turnover of €423 million was achieved. The financial result is expected to be between €5 and €7 million, as anticipated a quarter ago. In the two previous fiscal years, HZPC achieved a result of €7 million.

In addition, the potato breeder foresees a slightly higher gross margin of €72 million and slightly higher normal operating costs. However, higher total costs are still expected due to potential provisions for debtors in politically unstable regions. This situation has improved compared to February, but it is wise to consider it as an uncertain factor towards the final result.

More oversized seed potatoes sold
While fewer tons may have been marketed in Europe, when all tonnages (sold by licensees and the company) are combined, an increase is expected. It is expected that the magical threshold of 1 million tons will be just missed. Director Gerard Backx states: "We expect the total tonnage we sell and/or is marketed by licensees to increase by 5% compared to the previous year. We are likely to reach just short of the milestone of a million tons." However, HZPC has succeeded in selling more oversized seed potatoes than anticipated a quarter ago.

Incident with stolen money resolved
HZPC also announces that the case of the stolen money by cybercriminals has been resolved. The full amount that was stolen has been refunded. The potato breeder reported in September that it had been hit by a cyber attack. The relevant authorities have now released the money from the blocked account where it had been held for a long time. HZPC has not been informed of any results from forensic investigations. With the amount refunded, the company closes the incident.

Jesse Torringa

Jesse Torringa is a market specialist in seed potatoes and organic potatoes, onions, and carrots at DCA Market Intelligence.
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