HOCHDORF Holding AG
HOCHDORF Holding AG: Higher revenue despite slightly lower turnover
EQS Group-Ad-hoc: HOCHDORF Holding AG / Key word(s): Half Year Results HOCHDORF Group press release: Half-year results for 2016 Higher revenue despite slightly lower turnover Hochdorf, 17 August 2016 – The HOCHDORF Group processed 415.9 million kg of milk, whey, permeate and cream in the first half of the year (previous year: 421.4 million kg; -1.3%). It generated gross sales revenue of CHF 278.4 million (previous year: CHF 284.3; -2.1%). The slight decline in these figures was 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. Overall, the HOCHDORF Group processed 415.9 million kg of milk, whey, permeate, and cream, an amount slightly less than for the same period last year (previous year: 421.4 million kg; -1.3%). In this regard, milk intake in Switzerland was 3.5% higher than the figure for last year – nearly 30% more whey was processed. In Germany and Lithuania, liquid intake fell slightly on account of the difficult situation on the milk market. Higher revenue despite slightly lower turnover 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 a gratifying 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. Dairy Ingredients area At the HOCHDORF Group’s Lithuanian plant, the purchased quantity of liquids fell significantly, due to the difficult situation on the milk market and political interventions on the market. The plant processed 29.5 million kg of milk and permeate, which was 27.8% less than in the record-setting previous year (40.8 million kg). Gross sales revenue accordingly fell from CHF 15.2 million to CHF 9.7 million (-36.1%). In the first half of the year, Uckermärker Milch GmbH in Germany processed 159.7 million kg of milk, permeate, cream, and buttermilk to make curd, butter, buttermilk, and milk powder (previous year: 168.3 million kg; -5.1%). The company also posted somewhat lower gross sales revenue, which came in at CHF 84.2 million (previous year: CHF 87.7 million; -4.0%). Despite the slightly lower quantity of liquids, the facilities were working at good capacity. With regard to production, the company invested in cost-saving measures, e.g. in the automation of butter production. In accordance with the defined product strategy, the first higher-quality milk powder was also produced. Baby Care area During the first half of the year, the Board of Directors approved investments of roughly CHF 80 million for expanding manufacturing and filling capacities for infant formula, as well as for inventory logistics in Sulgen. Planning is running according to schedule for the new spray tower line and the new tin line. The new capacities are scheduled to be available starting in the first quarter of 2018. Cereals & Ingredients area Despite the difficult market environment, Marbacher Ölmühle GmbH experienced a successful start to 2016, and gross sales revenue was able to be held constant at CHF 3.7 million. This result was made possible, inter alia, by changes in the internal sales organisation. In addition to the sale of high-quality plant oils, the sale of by-products has become an ever more important mainstay. The company manufactures healthy powder for the food industry from the press cake that accumulates during oil production, which is valuable in terms of nutrition and physiology. Somewhat later than planned, HOCHDORF South Africa Ltd generated its first sales in May. The sale of chocolate under the “Afrikoa” brand had a satisfactory launch in South Africa. It was also possible to open the factory store in early June. Forward integration project Presuming that a purchase agreement is signed on schedule, the Board of Directors will convene an extraordinary General Meeting in the fourth quarter of 2016. A conditional capital increase is currently planned for the purpose of financing the transaction. An increase in the restriction to voting rights from the current 5% to 15% might also become necessary. HOCHDORF will provide timely information about the results of the negotiations and next steps. Outlook “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 forecasted 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%. Key figures of the HOCHDORF Group (consolidated and unaudited)
You can find the detailed letter to shareholders online at report.hochdorf.com End of ad hoc announcement Additional features: Document: http://n.eqs.com/c/fncls.ssp?u=SMXQLJNSND Document title: HOCHDORF half-year results 2016 2016-08-17 News transmitted by Tensid EQS AG. www.eqs.com Information and Explanation of the Issuer to this News: In 2015 the HOCHDORF Group, which is headquartered in Hochdorf, generated a consolidated gross sales revenue of CHF 551.2 million. It is one of the leading foodstuff companies in Switzerland, with more than 625 employees as at 31 December 2015. Made from such natural ingredients as milk, wheat germ, and oilseeds, HOCHDORF products have been contributing to the health and well-being of the young and old alike since 1895. Our customers include the food industry and wholesalers and retailers. Our products are sold in more than 90 countries. HOCHDORF stock is 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: | Foreign Exchange(s) SIX | |
End of News | EQS Group News Service |