POTATO COMPANY ‘ROSE TO THE CHALLENGE’ TO CONTROL COSTS, SHAREHOLDERS TOLD
HIGH rainfall took its toll on seed breeder HZPC’s yields during the 2023 potato crop year, shareholders have been told.
The crop year in Europe was characterised in Europe by a late start owing to high rainfall, followed by a hot and dry period. As a result, seed potato growers’ yields were significantly lower than normal.
Royal HZPC Group’s gross margin decreased to€67.3 million. This was caused by lower volumes, which were not fully offset by higher prices.
At the General Meeting of Shareholders of Royal HZPC Group considered and adopted the 2023/2024 financial statements, having heard how the potato breeder showed its resilience despite the challenges in volume and yield.
By closely controlling costs, a net profit of €6.1 million was realised before deducting the costs of the Connecting Growers program. The dividend was set at €5.20 per certificate by the General Meeting of Shareholders.
The total volume of sales and licenses in the fiscal year reached 940,963 tons, almost equal to the previous year (944,293 tons). Despite the lower harvest in northwestern Europe, this was offset by an increase in license growing in Asia and the Americas. Total sales for the fiscal year amounted to €415 million.
Former CEO Gerard Backx said: “In 2023/2024, we were not able to achieve the growth we had estimated. However, in the special year 2023/2024 we showed how important resilience and adaptability are to our employees, growers, customers and partners. We pushed boundaries and saw a new balance emerge, with our strategy of focusing on different segments and regions paying off.”
Hans Huistra, who has now taken over the role of CEO, is optimistic about the current year. He said: “Royal HZPC Group has built a very good market position over the years. A lot has been invested in new, promising varieties and there is a strong international organisation with a solid home base in the Netherlands. With our employees, growers, clients and partners, we have an excellent starting position to grow in the coming years.”
