The financial results of HZPC Holding over the year 2016/2017 are very satisfactory. In terms of sales and gross profit, it was even a record year. Trade volume also saw a sharp increase. For a number of years, there has been a growth in the acreage of produced and traded seed potatoes. HZPC Holding approached a milestone of 800,000 tonnes sold and seed potatoes sold under license in the past year.
Our revenue autonomously rose by a few percent again. Thanks to two successful acquisitions in the previous financial year, we even experienced a leap in turnover. Our business area Stet Holland in Emmeloord took over a large part of KWS Potato’s assets and seed potato activities in this period. The integration thereof is going well. The acquisition contributed to the increase in tonnage, turnover and profit of the company. The acquisition in Russia, where we converted a minority stake in the joint venture HZPC Sadokas into a full participation, also contributed to the growth of our company.
HZPC Holding has a good capital position with a solvency of 41.1%. Turnover of 318.2 million euros was recorded in the past year. The gross margin of the organisation increased to 59.0 million euros. Net profit before taxes amounts to 11.7 million euros, net profit after taxes amounts to 8.5 million euros. For a trading company of our type, that is a very positive development. Return on equity positively exceeds our goals by 18.3%.
A good price for growers
In Western Europe, our seedling growers have generally achieved a lower yield in volume over the past year. However, the prices per kilogramme that these growers received from the various HZPC companies were higher than average in most countries in Europe, which enabled these growers to achieve a good financial return. Outside Western Europe, conditions differed strongly by region.
The good performance also has an effect on the trust of the certificate holders and the stock exchange value. The certificate value rose again by a maximum of two increments of 10 percent. This brings the stock exchange value to 129.8 million euros. There is much appreciation of, and trust in, the organisation, its future and the strategy.