Royal HZPC Group remains profitable in challenging potato market

Revenue amounted to €450 million. Gross margin reached €79 million, EBITDA €10 million, and net profit €3 million. While these results are well below last year's record level, they demonstrate that the strategy of diversification across varieties, segments, and markets continues to prove its value under difficult market conditions.

The past year was characterised by severe price pressure on potatoes across virtually all major markets. As a result, potato acreage has been significantly reduced in many markets this year. This affected both demand for seed potatoes and pricing throughout the sector. CEO Hans Huistra explains: "Looking at the global potato market, it can be concluded that nearly everyone has experienced a difficult year. Low prices in the consumption market have impacted the entire value chain, including the seed potato market. Against that backdrop, we are pleased that we have been able to limit the impact on our growers."

Royal HZPC Group's growth was driven by a slight increase in physical seed potato sales and a further rise in licensing volumes. The integration of IPM also contributed to this development.

Although Royal HZPC Group remains profitable, results are clearly below last year's level. Partly for this reason, and in line with agreements made with the company's financing banks, Royal HZPC Group will not pay a dividend for the 2025/2026 financial year. No Connecting Growers certificates will be issued either.

"We realise that this is disappointing news for certificate holders. At the same time, it is important to maintain a strong financial position and preserve the ability to invest in initiatives that support our long-term growth," explains Hans Huistra

Even in a challenging year, Royal HZPC Group continued investing in the future of the potato sector. The implementation of NetSuite, the company's new ERP system, was further rolled out across the organisation. Thanks to the commitment of employees, a large part of the implementation has now been completed. Although this investment had a substantial impact on last year's financial result, the system provides an important foundation for the company's continued growth and professionalisation.

In addition, further work was done on integrating IPM into Royal HZPC Group. "IPM has experienced an extremely difficult first year. Price-sensitive markets, particularly in North Africa, came under considerable pressure. This negatively affected the result. At the same time, this does not change our conviction that the acquisition is strategically the right choice for the long term," says Huistra.

Within the variety portfolio, the key varieties continue to develop positively. Innovator and Colomba maintain their strong market positions, while newer varieties such as Quintera, Travolta, Invictus, Castor and Brianna continue to gain ground.

Huistra comments: "Our investments in research and breeding are increasingly paying off. We have a strong portfolio of new varieties that address the challenges faced by growers around the world. That gives us confidence for the years ahead."

Although it is still too early to make firm statements about the final outcome of the current season, Royal HZPC Group sees signs of a better market balance. In several regions, planted acreage has declined and yield expectations are lower than last year.

Hans Huistra concludes: "The first signals for the new season are more positive than they were a year ago. In several areas, we see reduced acreage and a better balance between supply and demand. It is still too early to draw conclusions, but these developments do provide confidence."

More information about Royal HZPC Group's financial results and strategy is available in the 2025/2026 Annual Report, which will be published alongside the opening of the certificate trading period.