Good profit of HZPC for the 3rd year in a row
Press release - 12 october 2009
HZPC Holland B.V. has realised a good result over this financial year for the 3rd year in a row. After taxes, the profit is 4.8 million euro.
Although the profit is somewhat lower than in the record year 2007/2008, with a net return on equity of 15%, this result can be considered as a good result.
Because of a lower price level, the turnover in seed potatoes decreased with 7.5 million to 195.5 million euro. The turnover in ware potatoes stayed equal to the previous year. The profit of all the subsidiaries resulted into 3.1 million euro.
The supervisory board decided to add 1.7 million euro of the profit to the equity. With that decision 3.1 million euro is for the disposal of the shareholder (65%). This means a dividend of 4.00 euro per certificate. The current rate of the certificate is 43.50 euro, so the dividend return is 9.2%.
The general manager of HZPC, Gerard Backx, is satisfied with the result. "Despite the difficult market circumstances, the performance of HZPC was good as well for the grower as for the shareholder. The policy to be active with production and sales of HZPC varieties in several areas around world, is successful. It offers the opportunity to increase our investments in Research structurally."
The market of seed potatoes has its own circular course. The result in the sales of seed potatoes is also set by the price level of ware potatoes. At the moment in a lot of countries in Europe, the prices of ware potatoes are low. We expect this will have an impact on the sales in seed potatoes. Strengthened by the general economic crisis, customers of seed potatoes will be more reluctant with their orders. It is not yet clear what the balance in the market will be. For the time being, HZPC assumes that after three good years, annual year 2009/2010 will be a moderated year as well for HZPC as for it’s grower.
If you have any questions, please contact mr. J.H. Hoogenboom, + 31 513 489 888.