Seed potato breeder Royal HZPC expects a financial turnover increase of 2023% for the 2024/4 financial year. The net result is expected to be comparable. The company reports this in a press release. In addition, more oversized seed potatoes were sold than the company previously took into account.
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 is or has already been sold in Europe. However, this is offset by an expected growth of 23% in the tonnage grown under license. HZPC attributed this to positive developments in America and Asia.
Due to the changing ratio between direct sales and tonnes produced by licensees, in combination with the increased sales prices of last season, Royal HZPC's expected financial turnover increases by 4% compared to the previous financial year. A turnover of €2022 million was achieved in the 23/423 financial year. The financial result is expected to be between €5 and €7 million, as was expected a quarter ago. In the two previous financial years, HZPC achieved a result of €7 million.
In addition, the potato breeder anticipates a fractionally higher gross margin of €72 million and fractionally higher normal operating costs. However, higher total costs are still taken into account due to possible provisions for debtors in politically unsettled regions. This situation has improved compared to February, but it is wise to regard this as an uncertain factor towards the end result.
More oversize sold
Fewer tonnes may have been sold in Europe, but with all the tonnages (that the licensees sell and the company sells) added together, an increase is expected. It is expected that the magical limit of 1 million tons will not be exceeded. Director Gerard Backx indicates: "We expect the total tonnage that we sell and/or sold by licensees to increase by 5% compared to the previous year. We will probably reach the milestone of one million tons within 1%." However, HZPC has succeeded in selling more upper sizes as seed potatoes than was expected a quarter ago.
Incident involving stolen money completed
HZPC also announces that the case involving the money stolen by cyber criminals has been completed. 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 the money was held for a long time. HZPC has not been informed about any results of forensic research. Now that the amount has been refunded, the company is closing the incident.