HZPC: market effect war difficult to predict

HZPC reports a turnover of €2021 million for the 22/350 financial year, just under 11% more than the year before. The result, or final profit, amounts to €7 million. This is considerably more than the profit of €1,5 million the year before. The result for both years does not include the costs of the so-called Connecting Growers program, into which HZPC invested €1,5 million this past financial year. HZPC proposes to shareholders to pay out €4,7 million as dividend, or €6 per certificate. A year earlier this was only €1. In total, the trading company sold almost 900.000 tons of seed potatoes in the past financial year, directly or via licensees, the group said in a statement.

No net sales after start of war
In addition to the favorable effects of a reorganization, HZPC's higher profit figure is a reflection of the better market conditions in the 2021/22 season, which has increased sales. At the same time, after the start of the war between Russia and Ukraine on February 24, net sales amounted to virtually zero, the company reports in the explanatory notes. HZPC usually manages to sell a few percent in the winter and early spring, especially on the European market. "The war caused increasing uncertainty among consumer potato growers and at the same time the prices of various grain products rose. This had an impact on HZPC's results."

This uncertainty has not yet disappeared, especially in the European market, in view of the current season and the 2023 cultivation year, CEO Gerard Bakx notes in the explanation. He is cautiously positive about the current financial year and is counting on higher turnover and a comparable profit. "We anticipate significant growth in countries outside Europe, such as India, China, Africa and America. In recent years we have taken important steps in the development of new varieties and invested in market development. This will pay off in the coming year."