Potato breeder Royal HZPC Group maintains its forecasts for the 2022-2023 financial year. HZPC expects turnover to grow 11% from last year (then 352 million euros) with a gross margin of 66,5 million euros (last financial year 63.9 million euros). The potato breeder operates with a financial year from 1 July to 30 June.
In financial year 2022-2023, international transport costs were remarkably high. This is a major reason for the increase in turnover. Transport costs are expected to decline in the coming year.
The overall tons (traded seed potatoes and licensed cultivation) increase markedly compared to last year. The volume of traded seed potatoes is expected to increase limited. This trade mainly takes place in and from Europe. The result grows mainly due to areas outside Europe, where licensed cultivation takes place. Mainly in Asia and America. Royal HZPC Group expects its licensees to trade 17% more volume of HZPC varieties than a year earlier.
Increase in EBITDA
HZPC managed to limit the increase in its operating costs to around 3% (last year 50.7 million euros). Thanks to these developments, Royal HZPC Group expects EBITDA (earnings before interest expenses, taxes, depreciation and amortization) to rise by around 1 million euros. Last year, EBITDA was 13.2 million euros.
Increase in financing costs and result
For decades, Royal HZPC Group has chosen to pay its growers advances early in the season. This requires external financing. Due to rising interest rates, this leads to higher financing costs. Currency effects, especially on the Argentine peso, also increase the costs. The net result is expected to slightly exceed 7 million euros (previous year 7.051 million euros). This does not yet include the costs of the Connecting Growers program.
Harvest 2023
Gerard Backx about harvest 2023: 'We expect the total area for production of certified seed potatoes in Europe to decrease sector-wide. This is because a number of growers choose to grow consumption potatoes for the french fries industry instead of seed potatoes. This will affect the expected availability of certified seed potatoes for the 2024 crop planting. Whether this will affect the expected results in financial year 2023-2024 can I not yet predict.'.
HZPC UK strengthens position with acquisition of TLC Potatoes
HZPC UK has announced the acquisition of TLC Potatoes, one of Scotland's large minituber producers. With this acquisition, HZPC UK further strengthens its position in the market and secures the future of HZPC’s minituber production, the apex of seed potato multiplication. 
Colin Blackhall, the current owner of TLC Potatoes, will continue to be involved and support the business, ensuring a smooth transition and maintaining the company's success. All key members of staff at TLC Potatoes will remain with the business, ensuring expertise and continuity in minituber production.
For more information:
HZPC (main office)
Edisonweg 5
8501 XG Joure - Nederland
Tel.: +31 (0)513 48 98 88
info@hzpc.com