HZPC reports financial results: a good year

HZPC Holland B.V. has closed the financial year 2011/2012 with a nice result. However the previous year 2010/2011 was an exceptional year with a record for turnover, growers price and profit. Compared to the last year the result has decreased. Despite that, the year 2011/2012 is a year with a nice result that meets the targets HZPC has set for itself.

The consolidated turnover was 237 million euro (290 million the year before) and the operating profit was 5.7 million euro (11.3 million euro in the year before).

After deduction of taxes this resulted in a net profit of just over 4.4 million euro (8.6 million euro the year before) for the company. The contribution of the subsidiaries in this result was 3.8 million (4.5 million in the year before). Especially the result of HZPC Holland B.V. decreased compared to last year. The trade out of the Dutch pool resulted in a lower margin. For the Dutch growers the seed potato price from crop 2011 was a good one with 31 euro per 100 kg. About the division of the income between the HZPC organisation and the growers, HZPC has made agreements that can not be changed at once. The lower result out ofthe Dutch pool is caused by a smaller market in Europe due to the lower table potato prices.

On 4 October the supervisory board and the shareholder approved and adopted the annual accounts and gave for disposal an amount of 2.9 million euro (65%) for dividend. This means an amount of 3.75 euro per certificate of share (last year this was 7.00 euro). The present quotation of the certificate is 64.35 euro (against 53.25 euro last year). This means a return on dividend of 6%. Over the last 5 stock trading days the value of the certificate of HZPC raised with the maximum of 10% each time. Twice a year a stock trading day is organised.

CEO Gerard Backx is pleased with the result. “The company has developed itself further during last year. The objective of HZPC is to increase the volume of her varieties on the world market. The gross margin is excellent. Except of last year, the gross marge that was realized is a record. HZPC has deliberately chosen to raise the costs in favour of the investments in research and the sales of our varieties. That is why this result fits very well with the strategy of HZPC to develop itself further as a seed potato company.”

For the coming season 2012/2013 HZPC sees good opportunities on the European market. The prices for ware potatoes have risen again. The sales in the Middle East stay uncertain because of the political unrest. Nevertheless, HZPC is not negative about the coming year.