HZPC, a world leader in potato breeding, announces that the shareholders meeting of 6 October has established the consolidated net turnover for financial year 2015/16 at €289.5 million. The gross margin is €48.1 million and the net result is €7.0 million. The dividend for HZPC-certificates is set at €5.75, well above the five year average of €4.60. With these results, HZPC achieved its growth targets, while maintaining the net result.
The record levels of turnover and margin and above average profit indicate a good trade year. CEO Gerard Backx comments: ”HZPC aims for gross margin amongst other indicators. Our longer term growth target is to develop to €50 million gross margin for 2017/18. We do this to be able to continuously invest in research and market expansion outside Europe, in order to fortify our market leadership position as an innovative seed company.” Also a good return on equity (ROE) and paying a competitive price to their seed potato growers, are important objectives for HZPC. Backx: ”We are proud as a company to have achieved our goals with our international team.”
Review and outlook
After a challenging season 2014/15, the European market recovered in financial year 2015/16 as expected. Gerard Backx: ”HZPC benefited from the European market recovery, but also from our efforts on the international markets, which resulted in increased licence income on other continents. In the current season 2016/17 we see lower yields in the Netherlands, but not throughout Europe. Demand is expected to be similar to season 2015/16. The trade with the Middle East remains challenging and uncertain because of political and economical uncertainties.”
Dividend return 4.2%
On 6 October 2016 the shareholders, the HZPC Association (‘Vereniging HZPC’) and the Supervisory Board discussed and determined the financial statement, and put at disposal an amount of € 4.5 million for dividend. This results in a payment of dividend of € 5.75 per certificate of share, which means a dividend return of 4.2% at a certificate value of € 136.90 (May 2016). The next stock trade day will be on 18 November 2016.
HZPC will publish its annual report on www.hzpc.com end October 2016.