Potato breeder HZPC results: Resilience and transformation in fiscal year 2023/2024

On October 29, 2024, the General Meeting of Shareholders of Royal HZPC Group considered and adopted the 2023/2024 financial statements. The 2023 crop year was characterized in Europe by a late start due to high rainfall, followed by a hot and dry period. As a result, seed potato growers' yields were significantly lower than normal. Despite these challenges in volume and yield, the potato breeder showed its resilience.

Royal HZPC Group's gross margin decreased to EUR 67.3 million (USD 71.6 million). This was caused by lower volumes, which were not fully offset by higher prices. Nevertheless, by closely controlling costs, a net profit of EUR 6.1 million (USD 6.5 million) was realized before deducting the costs of the Connecting Growers program. The dividend was set at EUR 5.20 (USD 5.53) per certificate by the General Meeting of Shareholders. The total volume of sales and licenses in the fiscal year reached 940,963 tons, almost equal to the previous year (944,293 tons). Despite the lower harvest in northwestern Europe, this was offset by an increase in license growing in Asia and the Americas. Total sales for the fiscal year amounted to EUR 415 million (USD 441.8 million).

Resilience and adaptability

Gerard Backx, Former CEO of Royal HZPC Group:

"In 2023/2024, we were not able to achieve the growth we had estimated. However, in the special year 2023/2024 we showed how important resilience and adaptability are to our employees, growers, customers and partners. We pushed boundaries and saw a new balance emerge, with our strategy of focusing on different segments and regions paying off."

Excellent starting position

As of September 1, 2024, Hans Huistra has taken over the role of CEO. He looks optimistically to the future.

Hans Huistra:

"Royal HZPC Group has built an very good market position over the years. A lot has been invested in new, promising varieties and there is a strong international organization with a solid home base in the Netherlands. With our employees, growers, clients and partners, we have an excellent starting position to grow in the coming years."

Royal HZPC Group is committed to sustainability and innovation, with the conviction that internationally there is still a world to be won in seed potato growing. For more information on Royal HZPC Group's financial statements and future plans, check out our new English annual report which will be published end of this week.