Royal HZPC Group Maintains Fiscal Target
The potato breeding company Royal HZPC Group hopes to achieve a comparable outcome in the fiscal year 2023-2024 (July-June) as the previous fiscal year. Financial turnover is predicted to increase by 4%.
Strong market fluctuations on the supply and demand sides define the 2023–2024 season. For instance, in its quarterly report from February, Royal HZPC Group previously mentioned low European rates. But a quarter of a century later, the potato breeding company sold more top-seed potatoes than anticipated. Better outcomes are anticipated for the European activities of Royal HZPC Group as a result. There were failures in other areas, in part because of an overabundance of potatoes produced by strong harvests.
“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-tonne milestone,” Gerard Backx mentioned.
The estimated tonnage that is being or has been sold is expected to drop by 6% as a result of low European yields, particularly in the Netherlands. The tonnage grown under license is predicted to increase by 23% as opposed to this decline. Positive developments in America and Asia are the primary reasons for this. In comparison to the realized revenue of the previous year (turnover financial year 2022-2023: EUR423m), Royal HZPC Group anticipates a 4% increase in financial revenue due to the shifting ratio between direct sales and tons generated by licensees, together with the increased sales prices.
Additionally, the potato breeding company anticipates a fractionally higher gross margin of EUR72m and fractionally higher normal operating costs. However, there is still consideration for higher total costs due to potential provisions for debtors in politically unstable regions. This situation has improved compared to February, but it is wise to consider it as an uncertain factor towards the final result.
“Due to the developments described above, Royal HZPC Group maintains the previously stated expectation of a net result between EUR5 and EUR7m. In the two previous financial years, Royal HZPC Group realized a net result of EUR7m. The mentioned results do not include costs of the Connecting Growers program,” according to a recent press release.
The money that cybercriminals had taken from Royal HZPC Group was repaid to the last cent last quarter. The potato breeder disclosed that it had experienced a cyberattack in September. The funds were taken out of the barred account, where they had been kept for a long period, by the appropriate authorities. There has been no communication regarding the findings of the forensic inquiry with the Royal HZPC Group. The matter is resolved by Royal HZPC Group when the embezzled sum is returned.
