Royal HZPC Group sells more potatoes, but revenue and margins drop amid global potato market pressure

Royal HZPC Group is operating in a globally challenging potato market during the 2025/2026 financial year, with prices and margins under pressure. Despite these conditions, the global seed potato volume of Royal HZPC Group continues to grow, reaching above 1.1 million tonnes.

This growth supports the further development of a future-proof variety portfolio and a stable position in the market. At the same time, revenue is expected to decline significantly as a result of strong price pressure across nearly all major markets.

Following last year’s revenue of EUR 525 million (USD 603 million), revenue for the current year is expected to remain below EUR 450 million (USD 517 million). Margins and overall results will also be well below last year’s level. Current expectations indicate an EBITDA of around EUR 10 million (USD 11.5 million), substantially lower than the EUR 27 million (USD 31 million) achieved in 2024/2025. 
 

Market Year Under Heavy Pressure

The past year was characterised by a challenging global potato market. Good harvests resulted in ample supply, which affected the seed potato market both in terms of prices and sales opportunities.

Despite these conditions, Royal HZPC Group’s global volumes increased. This growth was driven by a slight increase in physical seed potato sales and a further rise in licence volumes. The integration of IPM also contributed to the total volume.

Hans Huistra, CEO of Royal HZPC Group:

"After a number of strong years, the global potato market is facing difficult conditions this year as a result of the excellent harvests of the previous season, combined with weakening demand. As a consequence, prices are under pressure and it has become more challenging to find suitable destinations for all seed potatoes. Against this background, we are satisfied that we have been able to limit the impact for our seed potato growers. Our wide spread across regions and product groups, combined with a strong focus on new and protected varieties, has helped us achieve this."

Results and Payouts

Ongoing price pressure is putting margins and results under strain. Royal HZPC Group’s result will be significantly lower than in the previous year.

Payout prices to growers will also be below last season’s level, although still above the five-year average. The forecast prices were communicated earlier this year. Against the backdrop of current market conditions, the realised price level for growers is considered appropriate and in line with the market. 
 

Development of the Variety Portfolio

Within the portfolio, leading varieties Innovator and Colomba once again showed stable performance. At the same time, part of the assortment experienced a more difficult year, particularly the non-protected varieties.

Royal HZPC Group is seeing positive developments in new varieties, including French fry varieties Quintera, Travolta and Castor, crisping varieties such as SH C 1010 and Norman, and table potato varieties Libra, Brianna, Tyson and Zelda.

Once again, several new varieties were successfully introduced to the market this year. Research & Development remains a key pillar within the organisation, focusing on providing growers with more resilient and higher-performing varieties tailored to diverse growing conditions worldwide. Strengthening connections with growers and customers continues to be central to this approach. 
 

IPM Integration

The acquisition of IPM has now been fully completed, and IPM is fully integrated into Royal HZPC Group. For IPM, it was a particularly challenging year, mainly due to strong exposure to price-sensitive export markets in North Africa.

These circumstances significantly pressured IPM’s results. As a result, IPM does not yet make a positive contribution to the Group’s result in the current financial year. Royal HZPC Group nevertheless views the acquisition as a strategic long-term investment and remains confident in its future added value. 
 

Continuing to Build Food Security

Despite challenging conditions, Royal HZPC Group continues to grow its seed potato volumes and thereby contributes to global food security. Potatoes play a key role in feeding a growing world population due to their high yield per hectare, nutritional value and broad applicability.

Finally, Royal HZPC Group continues to invest in knowledge, innovation and collaboration, with the aim of remaining a reliable partner for growers, customers and certificate holders, even in fluctuating market conditions.