Seed World

HZPC Experiences Record Turnover and Result

During its meeting of shareholders on October 3, 2019, HZPC announced that its consolidated net turnover for the 2018/2019 financial year was € 350 million (about $383 million). This is significantly higher than the previous year (€ 303 million or about $332 million). The gross margin amounts to € 64 million (€ 55 million last year) and the net result increased from € 4.7 million to € 9.4 million. The dividend on HZPC certificates is set at € 7.75.

Retrospective and Future Perspective

Gerard Backx, CEO of HZPC Holding explains: “2018/2019 was an exceptional year for us and a large part of the potato sector. Overall, however, seed potato acreage increased once again in 2018/2019, compared to the year before. In Europe, we had an extremely dry summer. As a result, yields in tonnage per hectare were significantly lower than normal for seed potato growers. Despite these low yields, HZPC Holding’s total volume of seed potatoes (both sold and grown under license by its partners) only decreased very slightly, from 816,000 tons last year to 815,000 tons this year.

We are delighted that this decline has been very limited in a year with a significantly lower yield per hectare than budgeted. This decrease in volume in Europe was compensated by an increase in volume in America and Asia. HZPC actively invests in the various markets on these continents and is seeing its turnover in these markets rise.

We continuously strive for growth. Together with our growers, we are constantly expanding the acreage dedicated to seed potatoes. Growth, however, is not just about volume or turnover; it also relates to the development of quality, creativity, innovation and social values. We aim to function as an important link in the chain and strive for growth for all of our partners, growers and employees. HZPC keeps you growing.”

Dividend Return

The shareholders (HZPC Association) and HZPC’s Supervisory Board, discussed and approved the annual accounts. An amount of € 6 million was made available for the payment of dividends. This results in a dividend of € 7.75 per share certificate. This equates to a dividend return of almost 5% for a certificate rate of € 162 (May 2019). The next share trading day on which the rate will be set is November 1, 2019.