HZPC maintains profit margin

Over the entire financial year 2021-2022, HZPC expects to realize a turnover of €342 million (in 2020-2021 this was €314 million). An expected increase of €28 million. The operating costs are expected to amount to €49 million (€1,9 million lower than last). As a result, the Ebitda comes out at €12,6 million.

A net profit of €2020 million was realized in the corona financial year 2021-1,4. Due to current expectations, HZPC sees net profit increase to €2021 million in 2022-6,6, an increase of €4,2 million. It is important to note that this profit figure does not yet include the costs of the Connecting Growers program. These were over €1,3 million last year.

Sales proportional to 2020-2021
Despite the fact that corona still has a considerable aftermath and the conflict in Ukraine also affects exports, HZPC expects the total volume of seed potatoes traded to its licensees to exceed 900.000 tons. This means that the traded tonnage is approximately the same as in the year 2020-2021. However, this figure is 1% lower than the volume estimate after the second quarter. This is because of the conflict in Ukraine. Normally HZPC exports seed potatoes to Ukraine, but due to the conflict only a limited part has been delivered. Most deliveries to Russia have gone ahead. 

According to Gerard Backx, CEO of HZPC Holding, the consequences of the conflict are also noticeable in other European countries and sales stopped after the outbreak of the war. “After the second quarter, it was clear that potato growers in Europe are somewhat reluctant to plant potatoes for the 2022 harvest due to the higher prices of other major agricultural products. Since the outbreak of the war in Ukraine, the sale of seed potatoes in Europe has come to a standstill. "Almost no extra sales have been realized or the extra sales compensate for canceled orders. In normal years we always realize a few percent of European sales in the months of March and April. They are missing this year."