HZPC Closes Eventful Year with a Healthy Result
HZPC recently released its 2019-2020 financial year results, which show that despite the consequences of COVID-19, the company has had an operationally successful season. Next year, however, HZPC says will be more of a challenge. The potato breeder is on the cusp of a season, which encompasses a huge, global economic recession, according to a press release.
During the general meeting of shareholders, HZPC sales were shown to have increased, with 892,000 tons of potatoes sold directly or via license-holders, compared to 815,000 tons in the previous year. Turnover in cash increased by EUR14m to EUR364m and the gross margin increased as well. However, operational costs were also higher. This led to an EBITDA (earnings before interest, taxes, depreciation and amortization) of EUR17m, compared to EUR18m last year.
“The consequences of the pandemic were limited in 2019-2020 but we expect these to be much more significant in the coming financial year”, explained Gerard Backx, CEO HZPC. “We have to face both the direct and the indirect consequences of COVID-19.” The company says an example of such indirect consequences would be the huge economic recession in various countries where HZPC sells its potatoes. According to the press release, this recession is much more substantial in Asian and African countries, compared to the impact in Europe or the USA.
“We are concerned about the lack of hard currency in various countries and the exceptionally low price for ware potatoes in almost all countries. We will have to be extremely careful in the coming year”, Backx added. “That said, HZPC’s foundations are stable and we have fantastic growers and employees who all support the potato as an important element in global food supplies.”