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Hochdorf optimistic
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19/08/16

Hochdorf has announced that it processed 415.9 million kg of milk, whey, permeate and cream in the first half of the year compared with 421.4 million kg in the year-ago period. Gross sales revenues were CHF 278.4 million vs CHF 284.3 million.
Hochdorf optimistic
Hochdorf has announced that it processed 415.9 million kg of milk, whey, permeate and cream in the first half of the year compared with 421.4 million kg in the year-ago period. Gross sales revenues were CHF 278.4 million vs CHF 284.3 million. The slight decline in these figures was, said Hochdorf, primarily due to the challenging market environment. Due in part to efficiency-boosting measures, EBIT rose sharply to CHF 13.1 million (+22.7%). The turnover and revenue targets for the 2016 business year as a whole have been adjusted.
In terms of revenue, Hochdorf achieved a gross margin of 24.1% (previous year: 22.3%). In absolute terms, this meant gross profit of CHF 70.7 million (+10.8% compared with the previous year). The Group significantly boosted both EBITDA (CHF 18.4 million) and EBIT (CHF 13.1 million). Net profit amounted to CHF 11.0 million (previous year: CHF 4.1 million). Increases in efficiency, adjustments to the product portfolio, good utilisation of facilities and the disappearance of a currency effect that had existed in the previous year all contributed to the significantly higher revenue figures, which also came in above expectations, Hochdorf said.
In its outlook, Hochdorf said that, in terms of the market, the aim in the Dairy Ingredients area is to handle the continuing difficult situation on the milk market, to further increase efficiency at the plants and to push forward with projects concerning the production of products with strong added value. The Baby Care business area is expediting the development, production, and marketing of base powder for infant formula and is on the look for new partners in order to fully utilise as quickly as possible the new production and filling capacities that will become available in 2018. The Cereals & Ingredients area is pursuing three key issues: expansion of the plant in Marbach, development and launching of additional products with strong added value, and a successful appearance at SIAL in October 2016, one of the world’s leading trade fairs for food.
“We are optimistic as to the second half of the year. Because of the persistently low price of milk with influence on the Dairy Ingredients products, we slightly lowered the forecast annual turnover to CHF 540 to 580 million,” said Thomas Eisenring, CEO of the Hochdorf Group. He also stated that modifications were made to the forecast at the start of the year concerning EBIT as a percentage of production revenue. Based on the good result for the first half of the year, Eisenring expects that the EBIT percentage will now come in the range of 3.5-4.0%.
 
 

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