Both the turnover and the net result for the fiscal year 2023-2024 turn out lower for seed potato cooperative HZPC than in the twelve months before. The volume of seed potatoes sold remained almost the same as the previous year, but less was earned from it. Despite all the challenges during the past season, the company is relatively satisfied.
During the general meeting of shareholders, Royal HZPC from Joure approved the annual accounts for the fiscal year 2023-2024. It can be read that the total turnover for the fiscal year amounts to €415 million. That is a decrease of €5 compared to the previous fiscal year, in which the turnover increased by a fifth. This spring, a 4% turnover increase was still expected.
Million euro lower profit
The gross margin decreased to €67.3 million. This is attributed to a lower volume of potatoes sold. Higher seed potato prices could not compensate for that. The net profit amounts to €6.1 million. That is one million less than the previous fiscal year. This is excluding the 'Connecting Growers' program, in which the HZPC holding annually buys and distributes shares among active growers. The dividend amounts to €5.20 per certificate. That was €6 in the previous fiscal year.
In total, HZPC sold 940,963 tons of seed potatoes. That is 3,300 tons less than the previous year. Late planting dates, excessive rainfall, hot and dry periods, and finally an extremely wet harvest. This resulted in a far from prosperous cultivation year 2023, especially for Northwestern Europe. The company achieved better results in Asia and America.
New balance
Former CEO Gerard Backx, who has since been succeeded by Hans Huistra, says: "We have not been able to achieve the growth we had anticipated in 2023-2024. In these extraordinary years, we have shown how important resilience and agility are. We have pushed our boundaries and seen a new balance emerge." Backx believes that the strategy to focus on more different segments and regions has paid off.
Successor Huistra is optimistic about the future. "HZPC has built an extremely strong market position and invested heavily in new varieties. [...] We have an excellent starting position to grow in the coming years."
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