Potato company HZPC pays € 3.75 dividend

Prices in the European ware potato market have been extremely low last season.

This has put considerable pressure on the demand for certified seed potatoes in Europe – a very important market for HZPC.

However, the sales decrease remained limited, because of HZPC risks spreading in terms of increasing activity on markets outside Europe. The total decrease in sales was limited to € 40.7 mln.

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* in millions €	2010/11	2011/12	2012/13	2013/14	2014/15
Result*
Consolidated net turnover	290.9	234.1	291.1	282.7	242.0
Gross margin	43.2	39.1	45.8	47.5	41.3
Result for tax	11.1	5.5	1.5	10.7	5.0
Net result financial year	8.6	4.4	1.0	9.2	4.5
Balance*
Total balance	79.8	82.9	91.1	95.9	94.1
Quotation certificate
Stock trading day May	€ 53.20	€ 64.35	€ 77.90	€ 93.50	€ 113.15
Dividend
Share holders meeting October	€ 7.00	€ 3.75	€ 1.00	€ 7.50	€ 3.75

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Dividend return 3.3%

On 8 October 2015 the shareholders, the HZPC Association (‘Vereniging HZPC’) and the Supervisory Board discussed and determined the financial statement, and put at disposal an amount of € 2.9 mln for dividend. This results in a payment of dividend of € 3.75 per certificate of share, which means a dividend return of 3.3% at a certificate value that increased the last year from € 93,50 to € 113.15.

Spreading risks

In recent years, HZPC’s strategy has always been to aim to spread risks. In a difficult market like financial year 2014/15, this strategy has shown to be fruitful.

Mr. Gerard Backx, director HZPC

”HZPC is spreading his risks by diversification. In this respect, we aim to supply a variety in markets, both geographically and market sectors.”

”That is why HZPC is becoming less and less dependent of the European market. Based on this diversification, we have been able to persue our price policy and our sales strategy, also in the difficult season 2014/15.”

”It is our objective to pay a competitive price to the HZPC seed potato growers on the one hand, and on the other hand to achieve a solid return for the certificate holders. Also in the challenging season 2014/15 we did succeed in this”.

European recovery

Director of HZPC, Mr. Gerard Backx, is expecting a recovery of the European market which will be profitable for HZPC to achieve a higher result. At the start of the season, the prices for ware potatoes are much higher than one year ago. HZPC expects that because of this, the demand for seed potatoes in Europe will increase slightly again, with a comparable demand expected in the area’s outside Europe.