HOCHDORF Holding AG
HOCHDORF Holding Ltd: Higher earnings thanks to Pharmalys’ participation
HOCHDORF Holding AG / Key word(s): Half Year Results HOCHDORF Group press release: 2017 half-year results Higher earnings thanks to Pharmalys’ participation Hochdorf, 17 August 2017 – In the first half of 2017, the HOCHDORF Group generated gross sales revenue of CHF 312.1 million (previous year: CHF 278.4 million; +12.1%). Group-wide EBITDA rose by 17.6% to CHF 21.7 million (previous year: CHF 18.4 million) with the corresponding EBIT increasing by 20.4% to CHF 15.8 million (previous year: CHF 13.1 million). Pharmalys Laboratories SA is primarily responsible for these higher earnings. The sales target for the entire 2017 business year is being adjusted. At 377.6 million kg, the HOCHDORF Group processed significantly less milk, whey, cream and permeate (liquid volume) than in the previous year (415.9 million kg; -9.2%). Foreign milk factories are the main reason for this sharp decline. In Switzerland, the assumed liquid volume remained the same as the previous year, although less milk was produced. The difficult situation on the Swiss milk market also put a strain on results from the traditional milk business. The product volume sold also declined from the previous year’s level by 10.9% to 111,948 tons (previous year: 125,604 tons). Higher earnings thanks to Pharmalys’ participation Pharmalys Laboratories SA is primarily responsible for these higher earnings. The earnings of HOCHDORF Swiss Nutrition Ltd suffered from lower export subsidies compared to the previous year, lower production volumes for infant formula and margin losses, above all in the Dairy Ingredients Division. The lower production volume of infant formula resulted among other things from the reduction of delivery periods from six to just three months and the temporary discontinuation of volumes in Egypt and Libya. However, the order books for the second half of the year are now once again well filled and we anticipate high capacity utilisation. Additional measures for improving results have been taken. Dairy Ingredients Division At HOCHDORF Swiss Nutrition Ltd, the first six months of the year were characterised by low milk production. Thanks to the significantly increased processing of whey, capacity utilisation remained at a very high level. Reduced “Schoggi Law” contributions, margin losses and too little B milk for export products influenced earnings. For this reason, a project was launched for improving profitability: price increases, portfolio adjustments and cost savings will be used to significantly improve results. The record high butter prices were an advantage for Uckermärker Milch GmbH to the extent that the butter was produced from milk from direct suppliers. The purchase of milk fat at competitive prices was very challenging. The reorganisation with Dr Peter Pfeilschifter as on-site managing director showed rapid success. Some bad news came in the form of the closing of the curd production plant as of 31 October 2017 as announced on July. HOCHDORF Baltic Milk UAB is being negatively impacted by high milk prices, which cannot be transferred to the market, and a weak protein market. Under these conditions, the processed milk quantities were reduced as much as possible and production processes were optimised. Baby Care Division Cereals & Ingredients Division Outlook At the middle of the year, the percentage of EBIT relative to production revenue is 5.0% and thus under the communicated annual target range of 6.1 to 6.6%. Due to well filled order books in the Baby Care Division and measures taken to improve earning figures, the percentage EBIT forecast is not being changed. Key figures of the HOCHDORF Group (consolidated and unaudited)
The detailed shareholder report can be found online at report.hochdorf.com. Additional features: Document: http://n.eqs.com/c/fncls.ssp?u=BLNTRDFBWP Document title: HOCHDORF Group press release: 2017 half-year results End of ad hoc announcement Information and Explanation of the Issuer to this News: The HOCHDORF Group, based in Hochdorf, achieved a consolidated gross sales revenue of CHF 551.5 million in 2016. It is one of the leading foodstuff companies in Switzerland, employing 630 staff as of 31.12.2016. Made from natural ingredients such as milk, wheat germ and oil seeds, HOCHDORF products have been contributing to our health and wellbeing since 1895 – from babies to senior citizens. Its customers include the food industry and the wholesale and retail sectors. Its products are sold in over 90 countries. The shares are traded on the SIX Swiss Exchange in Zurich (ISIN CH0024666528). |
Language: | English |
Company: | HOCHDORF Holding AG |
Siedereistrasse 9 | |
6281 Hochdorf | |
Switzerland | |
Phone: | +41 41 914 65 65 |
Fax: | +41 41 914 66 66 |
E-mail: | hochdorf@hochdorf.com |
Internet: | www.hochdorf.com |
ISIN: | CH0024666528 |
Listed: | SIX Swiss Exchange |
End of Announcement | EQS Group News Service |