HZPC maintains earlier profit forecast

Seed potato trade house Royal HZPC expects a turnover increase of 11% for the current financial year compared to last year. It thus maintains its previous expectations for this financial year. The higher international transport costs are the main reason for the increase in turnover.

The potato breeder expects a turnover of €390 million for the current financial year (€352 million last year). The gross margin is expected to increase from €63,9 million to €66,5 million. The company announced this yesterday. The company's fiscal year runs from July 1 through June 30. The international transport costs are the main reason for the increase in turnover, but these are already lower than at the beginning of the year. This will probably continue to fall in the coming year as well.

Result grows through licensed cultivation
The volume turnover in tons is clearly increasing compared to last season, the trading house indicates in a press release. But the volume of traded seed potatoes is expected to increase slightly. This trade mainly takes place in and from Europe and exports to Southern Europe got off to a slow start. The result is growing mainly thanks to licensed cultivation, mainly in Asia and America. Licensees are expected to trade 17% more HZPC varieties than last year.

Despite the significant cost increases this year, HZPC manages to keep operating costs limited to approximately 3%. Thanks to these developments, the company expects to see its EBITDA increase by approximately €1 million to €14,2 million. The net result is slightly higher than €7 million, the same result as in the previous financial year.

Fall in seed potato area in Europe
Gerard Backx, CEO of Royal HZPC Group, sees a clear shift with regard to the seed potato area of ​​2023: "We expect that the total area for the production of certified seed potatoes in Europe will decrease. Growers prefer consumption potatoes for the French fries industry to seed potatoes. This will affect the expected availability of seed potatoes for the planting out of the 2024 harvest. I cannot yet predict whether this will have an effect on the expected results for 2023/24."

Jesse Torringa

Jesse is an editor at Boerenbusiness and focuses in particular on the arable farming sector, including grain and onions. He also closely follows the fertilizer market. In addition, Jesse works on an arable farm in Groningen with seed potatoes as the main branch.

j.torringa@boerenbusiness. Nl

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