NETHERLANDS – Royal HZPC Group, a prominent potato breeding company, aims to achieve a financial outcome for the 2023-2024 fiscal year like its previous fiscal year.
The company expects a 4% increase in turnover compared to the last year, reaching an estimated total revenue of EUR 423 million (USD 454.6 million).
The 2023-2024 season presents notable market fluctuations due to shifting supply and demand dynamics. In a quarterly report released in February, the company mentioned low European rates, but sales of top-seed potatoes exceeded expectations. This performance indicates a positive outlook for Royal HZPC Group’s European operations.
The company projects a 5% increase in total tonnage sales compared to the previous year. Gerard Backx, CEO of Royal HZPC Group, expressed confidence in reaching nearly a million tons, saying, “We expect the total tonnage we sell and/or which is sold by licensees to increase by 5% compared to the previous year. We will probably be within 1% of reaching the million-ton milestone.”
While European yields, particularly in the Netherlands, may drop by 6%, licensed tonnage is expected to grow by 23%, mainly due to positive developments in America and Asia. This shift will likely lead to increased sales prices.
Royal HZPC Group anticipates a slightly higher gross margin of EUR 72 million and modestly higher operating costs for the fiscal year.
However, potential provisions for debtors in politically unstable regions could increase total costs. The company notes an improvement since February but acknowledges the situation remains uncertain.
Despite these challenges, the company remains optimistic. A recent press release stated, “Royal HZPC Group maintains the previously stated expectation of a net result between EUR 5 and EUR 7 million. In the two previous financial years, the company realized a net result of EUR 7 million.” The projections exclude costs from the Connecting Growers program.
Royal HZPC Group recently recovered all funds lost to a cyberattack that occurred in September. The authorities returned the stolen funds from a frozen account.
Although the forensic investigation findings have not been shared with the company, it considers the matter closed following the recovery of the embezzled amount.
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