Potato breeder HZPC pays 1 euro dividend per certificate of share

HZPC Holland B.V., world leader in potato breeding announces that during the shareholders meeting of 10 October the financial statement was approved and the dividend of HZPC certificates was determined on 1 euro. HZPC realized in annual year 2012-2013 the second highest turnover in its existence (280.6 million) and the best gross margin ever ( 46.2 million). Provisional steps had to be taken involving a debtor in Egypt which resulted in the profit being reduced and the dividend being limited.

Despite the political unrest and difficult situation in the Middle-East and North-Africa, the shareholders of HZPC are keen to gain a strong position in the growing market of the region. Since 2000 HZPC has been doing good business in Egypt in an unconventional way. Nonetheless the distributor has not fulfilled its payment obligations at the end of 2012.

Meanwhile the future sales of HZPC and with that the seed potato cultivation for Egypt, has been secured by a new distributor and with good payment securities for the short term. For the medium term optimal guarantees have also been devised. This new distributor has also taken over the claim of the old distributor of 2012-2013. He will pay off this claim in accordance with an agreed payment settlement.
 

HZPC financial statement 2013

• In the year 2012 the seed potato yields were high. In the Netherlands, Germany and Canada the growing circumstances were good;the yields were above the five-year average. The yields in France and Poland were on a regular level. In the UK the yields were low due to abundant rainfall. HZPC was also able to sell large quantities of seed potatoes very well, in particular the protected varieties. Therefore, the affiliated seed potato growers benefited from a high growers price. In the Netherlands this price was € 29.51 per 100 kilogram with high growing yields. Therefore the growers achieved on average a 25% higher yield per hectare compared to crop 2011.
• HZPC has invested considerably in the company during the last years. These investments are now converted into a structurally higher gross margin. HZPC follows a strategy in which investments can be fully effective including research &development as well as marketing by means of a controlled growth.
• According to the objectives of HZPC, growth comes from new and existing markets. Canada and the USA are two existing markets for table and French fry potatoes where HZPC had a 12% growth in turnover this year
• This year HZPC acquired the other 60% of the shares of the Swedish company HZPC Sverige and therefore became sole owner. HZPC Sverige is a small company that is being reorganized according to plan, thus becoming profitable in 2013/14.
• The past financial year HZPC became full owner of HZPC Kantaperuna in Finland. HZPC Kantaperuna is a bigger company where the net returns already exceeds the yearly amortization of the goodwill.