HZPC, a global leader in the improvement of potatoes, announced that the consolidated net turnover over fiscal year 2017/18 was determined to be €300 million during the shareholders meeting of 4 October, and as a result it had decreased slightly compared to last year. HZPC Holding once again managed to grow in total volume of sold seed potatoes (in licences as well): from 797,000 tonnes last year to 816,000 tonnes this year. The gross margin consists of €55 million (€59 million last year), and the net result decreased from €8.5 million to €4.7 million. The dividend on HZPC certificates has been determined to be €4.
Looking back and to the future
Gerard Backx, CEO of HZPC Holding: “We anticipated a lower margin over fiscal year 2017/18 than in the previous record year. For HZPC, 2017/18 was a good year, although it didn’t equal the previous year. Demand for seed potatoes fell considerably compared to the previous year, mostly due to the lower prices of consumption potatoes in Europe. Nevertheless, we succeeded in retaining our market share on this continent that’s important to our company.”
Globally, there were very different circumstances and developments. For example, the US had good prices in the past year. On the other hand, prices in India, for instance, were at a very low level. In spite of this, HZPC managed to sell a slightly larger volume of seed potatoes globally than in the previous year. Sales in Russia even doubled in the past year. HZPC is focused on the long term and continues to invest in the improvement of varieties, markets and product development.
HZPC is cautious when it comes to fiscal year 2018/19. The dry weather in Europe in the summer of 2018 results in a considerably lower harvest, with a lower expected profit as a consequence.
On 4 October, the shareholder (the HZPC Association) and the Supervisory Board of HZPC Holding discussed and determined the annual account, and they have made an amount of €3.1 million available for the distribution of dividends. This results in a dividend of €4 per certificate of share, which amounts to a dividend yield of two per cent with a certificate rate of €200 (May 2018). The next trading day on which the rate will be redetermined is set for 2 November 2018.