HZPC announces record turnover

HZPC achieved a record net turnover of €2016 million in the 2017/318,5 financial year. The net result, or profit, amounts to €8,5 million. The company will announce this on Friday, October 6. 

The net result was higher only for the 2013/2014 financial year. The acquisition of the seed potato activities of KWS Potato contribute to the high annual figures. The substantial growth of the seed potato area, and the resulting seed potato production and trade, also play a large part in HZPC's current annual figures.

HZPC managed to reach a milestone in the 2016/2017 season by selling 800.000 tons of seed potatoes (also under license). Gerard Backx, director of HZPC: "The increase in volume is only partly the result of the acquisitions made, but the increase is mainly the result of growth in the various areas of activity of HZPC, such as the seed potato sector."

Dividend significantly higher
HZPC has made an amount of €5,5 million available for dividend payment. That equates to an amount of €7 per share, which represents a return of 4,2% at a certificate price of €165,65.

That €7 is €1,25 higher than last and €2 above the 5-year average. The next trading day, on which the price will be determined again, is November 3, 2017. 

Future vision
According to Backx, the past year was an excellent year for HZPC, the affiliated growers and the certificate holders. "This enables HZPC to invest in existing and new markets, in new breeding techniques and in product development."

For 2017/2018, HZPC expects a slight increase in the total volume worldwide. This will be accompanied by a lower margin than last year. This is due to the low European ware potato prices and the resulting tighter market for certified seed potatoes. 

HZPC's investments continue to increase according to plan, resulting in a lower 2017/2018 net result. HZPC does expect that the financial target for a sufficient return on equity will be achieved. Annual profit fluctuations are in line with the cyclical potato market.

HZPC's performance over the years

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.