Hochdorf reports first half sales

Switzerland’s Hochdorf Group has processed 415.9 million kilograms of milk, whey, permeate and cream for the first half of this year, which is slightly less than for the same period last year (previous year: 421.4 million kg; -1.3%). Gross sales revenue amounted to CHF 278.4 million (€254.7m), which was below the year before. The main reason was a fall in milk prices, which also led to lower product prices in the dairy ingredients business area. The Hochdorf Group as a whole sold 125,604 tons of product.

That being said, Hochdorf had, in the first half of 2016 a gross profit of CHF 70.7 million, up 10.8% versus 2015. Net profit amounted to CHF11 million, well over the CHF 4.1m seen in the previous year. Increases in efficiency, adjustments to the product portfolio, good utilisation of facilities and the disappearance of a currency effect, which had existed in the previous year, all contributed to the significantly higher revenue figures, the company says.

Implementation of the strategy 2016-2020 is underway. During the first half of the year new products were developed, which fit the strategy, and some were launched on the market. A letter of intent was also signed in July concerning the potential majority participation by the Hochdorf  in Pharmalys Laboratories SA. The aim is now to negotiate a purchase agreement that will enable the Hochdorf Group to take a first step toward closer proximity to end consumers.

The aim in the dairy ingredients area is to handle the continuing difficult situation on the milk market by further increasing efficiency at the plants and push forward projects for production of added value products.

The baby care business area is expediting the development, production, and marketing of base powder for infant formula and is on the lookout for new partners.

“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,” says Thomas Eisenring, CEO of the Hochdorf  Group.

 

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